Which A1 companies have caught Roger Montgomery’s Value.able eye?
In this appearance on Your Money Your Call, Roger Montgomery answers viewers questions on his A1 companies, including JB Hi-Fi, M2 telecommunications and Oroton. Roger also shares his thoughts on the future of the retail sector and reveals his favourite mining companies. Watch the interview.
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.
LukeS
:
Hi Roger,
Enthusiasm for M2 based on their current numbers and past performance is understandable.
My concern is for their future. A whack of their income comes from selling business phone systems. If you have even been involved in the purchase of one of these you will know it is nothing to drop $10k on a system with a few lines and handsets. They recently announced a deal with Flexigroup to provide finance to small businesses to assist in purchasing these systems.
After spending all that money, all you really end up with is a phone with less functionality than your mobile.
I predict the market for these systems will simply dissolve.
I currently run my business phone systems entirely via VOIP. Instead of a $10,000 whiz bang command centre on the secretary’s desk we manage things via a virtual PABX through a webpage. No need to be at the office – in fact no real need to have an office. Total costs including call costs are less than the interest you would pay to buy a physical system.
I must be missing something.
Roger Montgomery
:
Hi Luke,
I have personally experienced the sharp end of phone companies installing inferior phone ‘systems’ and VOIP systems so I can empathise with your sentiments. What’s interesting is the industry seems to attract lots of sharks and dodgy operators (no apparent barriers to entry to being a reseller) so a company that has a earned a reputation for honesty may just have an edge. Regarding your point about phone systems being redundant, I am not so sure…yet..
LukeS
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All you need is an intelligent handset. What do you really need that big box in the storage room for?
You will be able to manage your office phone and communications systems via an IPhone app soon. Hook your iPhones, Ipad, laptops into your network and think of just how much richer your whole business communication might become.
Friend of mine owns hardware distribution business. He says the kids are coming in and turning everything on its head. They laugh at him when he says they have to fly down to Melbourne to sort things out. The just go and skype the Melbourne guy and fix it then.