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What do the most widely held stocks in Australia all have in common?

What do the most widely held stocks in Australia all have in common?

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9 Comments

  1. Hi Roger as always you write to challenge our thinking and ask great questions to highlight or underline your opinion and views.
    I am one of those converts to your Skaffold and feel fortunate that I am able to have access to such a tool.
    In reading your latest comments and the associated list of 10 stocks that qualified, I noticed the omission of Norfolk (NFK) which is a stock I own and has been in my top 10 from the skaffold screening consistently but from your blog today alerted me to its omission. I returned to the screening to see what had suddenly occurred to create this omission. What I found is that NFK had failed the screening for a the positive EPS (now showing -35% EPS). Norfolk passed all other screenings as before. So to take this one step further NFK’s EPS for 2012 spiked very high as a result of a one off Tax credit and has now not passed the Skaffold screening (Positive EPS Screen) and subsequent qualification as a company that is currently qualifies as investable. To highlight my point further on the current screening of NFK,- it does look like -“throwing the baby out with the bath water.”
    Taking out this one off Tax adjustment that spiked the 2012 EPS result see’s NFK continue its steady positive EPS growth as before, approximately 6% and as such would be in your above list of companies that currently qualify.
    Ultimately you can claim success Rodger that I (through your book and Scaffold) I have increased my investing education and awareness to even comment here in your Blog, as I do not regard myself as anything more than a student attempting to improve my ability to understand what I am investing in. Of course if I have got my facts wrong and formed an incorrect view I know you will correct my take on all this.
    Also one last comment Rodger, I see in previous comments that NFK has been included in the basket of companies referred to as “Mining Services” which I see as a bit of a stretch when 80% of its primary earnings sit outside this sector/category.

    Steve

  2. Dear Roger , I am currently home on sick leave so had a chance to spend most of Monday researching companies through Skaffold. Finally settled on 2 that appealed to me. I bought 5k of JIN and 5k of MNF prior to you running a recent scan as mentioned below.

    I feel a bit more confident in at least one of my selections now. Thanks and the Skaffold team is doing a great job !

    ” Indeed I ran a scan the other day in Skaffold for companies that were rated A1, A2 and B1, had net cash, EPS growth expected and forecast intrinsic value growth and were trading at a discount to intrinsic value.

    There were only 10 companies that qualified. The snapshot to the right from Skaffold.com reveals those companies that you may like to research further “.

  3. Hi Roger,

    I love reading your blog, it’s probably the few website that I visit frequently. That and Eureka report, which is also 50% Roger Montgomery =P.

    Just a query in regard to the launch of the retail fund. Would I be able to invest my superannuation with Montgomery Investment Management? I’m currently with a provider called Host Plus, they offer a few investment choices from a bunch of hedge fund manager, so would it be possible if your fund was offered?

    Thanks
    David

  4. Cass gibbensc
    :

    Roger,
    Did you see David Potts definition of return on equity in the Smh today?
    Cheers,
    cass

  5. Dear Roger,
    A recent McKinsey report on de-leveraging states that of the top 10 economies in the world only the US, Australia and Sth Korea have started to de-leverage. Of interest in the report is that it is the private debt that has started to de-leverage whilst public or government debt has increased. Your article above appears to support that assessment. History often repeats, so if it does then there could be many more years of de-leveraging, protracted unless governments make a start soon! So What? invest in companies with no debt, good ROE and can generate cash and whilst there will be hiccups surely one would expect superior returns during these interesting times.
    Cheers

  6. Michael Leslie
    :

    Roger

    I am wondering whether you evaluated a certain A5 company during your visit? Just a thought.

  7. This year has not been one of undilutad pleasure for me Roger. Although my portfolio consists of nothing lower than B2 there are not many bright spots.MCE,SWL,FGE,NST,CMI,SLR,RMS. I hope that this is just the voting machine at work and the weighing machine will kick in longer term. We need the price to go up to the value more often than the value being revised down to the price. Still a believer and looking forward to a better year next year.

  8. Good post Roger. Thank you. I hold 4 of those 10 (MIN, RCG, WLL & ILU). I realise that the above list of 10 stocks is in no way a recommendation to buy – it is simply a scan result, with no further research done – a starting point. I have had reason to research 9 of those 10 over the past year, some of them quickly (moving on when finding reasons why they didn’t meet my own investing criteria), and others I have spent more time on. I’d just like to quickly share brief thoughts on two of those stocks, and to see if anyone else in the community agrees or disagrees…

    With regard to FLT, I think their commission-based model is going to suffer in a world in which major airlines are either ceasing to pay commissions or are reducing them. They had a stouch with Singapore Airlines recently over this, and then the ACCC took court action against FLT in March (not yet resolved). More recently, Qantas have stopped paying commissions on domestic and New Zealand flights and have reduced commissions on their international flights (from 7% to 5%). FLT are going to be flying into some strong headwinds if that trend continues.

    A quick note on NST. They have recently had encouraging drilling results that have extended the life of their Paulsens Mine. They are also debt free with no hedging – both big positives in my view. However, be aware that Northern Star is now a significant shareholder of Venturex Resources (ASX: VXR), and this may signal a diversification away from NST being a pure-gold-play. VXR are at the feasability study stage of a copper-zinc project (in WA’s Pilbara district) I like gold, but I’m not as positive on copper and zinc in the short to medium term.

    I would like to know if anybody else shares my views on these two companies or has an alternative view.

    Cheers,
    John C.

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