Where To Dig (19/2/2013)
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
joe
:
dear Roger
About 6 months ago i recommended a stock (lcm) it was about 1.00 ,I think about 1 person gave a positive feed back . After its interim results I would think this company although a small mining services company could have a good future because it has blue chip clients and reocurring buisness ,and is gradually getting more work in hydrocarbons and becoming less on on iron ore
Roger Montgomery
:
Hi Joe,
I know what you mean but we don’t permit recommendations. Did you mean you were suggesting a stock for others to investigate further and then seek and take personal professional advice about? I believe so.
Yavuz Atasoy
:
Roger,
I agree with your sentiment regarding investment in the resources & services companies. I am not surprised that you find Lycopodium as one of the best companies to invest currently in the resources space. From my own personal experience I have come to the conclusion that Lyco is one of the best managed resources EPCM companies. I have to disclose I currently work for Lyco after spending a number of years with other EPCM companies.
Cheers,
Yavuz
Andrew Hodge
:
Hi Roger,
I was just wondering if in your view BRG would now be included in this group of companies and what your thoughts are on the bloodbath following their interim report.
cheers,
Andrew
Andrew Legget
:
The mining services companies i can easily take or leave. I can’t help but think that the quality of these companies can/will change as the quality of the industry they are in declines and as i don’t think the mining “boom” can last forever and maybe starting to decline already. This means i expect the quality of these companies to decline with it.
The 3 non-mining companies you mentioned i like.
Cabcharge has an almost monopoly on Sydney taxi’s at least and has seen many a challenger banished.
JB Hi-Fi i have talked a lot about on here. It has its challenges ahead but is still in my opinion a quality company. Previous growth is no way indicative of how the future will pan out for this company as it is very mature now. As i said, there are challenges but i also think they can with smart decisions overcome them.
Flight Centre is another company i like, when it comes to travel agents and especially for international holidays, there is no peer. I tried to find them but was asked if we are getting quotes from another agent and when i said “flight centre” he didn’t project any confidence that they would be able to do any better and another agent didn’t have any of the hotels that we wanted in their systems and told us to just book it ourselves. It is especially attractive as my belief is that aussies are very much international travellers and (especially considering our geography) we tend to go on big international trips.
Not surprising Roger, i find myself agreeing with skaffold.