Thursday, March 06, 2014
IPOs have the potential to give your portfolio entry-level access to quality stocks well positioned for a profitable future.
Unfortunately the share market has no shortage of IPOs that bombed, and relatively recent newcomers like Collins Foods and Myer have both struggled to trade above their float price. If Boart Longyear is any proxy, there’s no guarantee these stocks will rally any time soon. Since floating in 2007 BLY’s share price has fallen more than 97%.
So don’t get sucked into buying overpriced and overspruiked companies wired to uninspiring sectors with questionable growth projections destined to lose you money.
Tuesday, October 08, 2013
Investors looking for the right sort of exposure to Queensland’s oil and gas exploration and production story – a la coal seam gas (CSG) – shouldn’t overlook junior energy and gas contractor Titan Energy Services (TTN), which has successfully hitched its fortunes to the sector’s enormous upside.
Since identifying TTN on 13 August, the share price has already risen more than 30%.
Much of the company’s recent 30%-plus share price rally and analysts’ upgrades for future earnings per share, dividends and profit figures, can be attributed to TTN’s impressive (four-fold) surge in 2012-13 NPAT to $9 million, plus an ‘investor day’ briefing in September 2013 revealing how well positioned TTN is to leverage off upstream work from Queensland’s CSG story.
Monday, September 23, 2013
Inspired by the success of the recent float of fertility clinic operator Virtus Health (VRT), another dozen floats worth around $3.7 billion are expected to come to market between now and year’s end. If the calibre of companies in the float pipeline is anything to go by, this offers you a rare ground-floor entry into quality stocks on the cusp of a promising growth trajectory.
The share market has no shortage of IPOs that bombed, and relatively recent newcomers like Collins Foods (CKF) and Myer (MYR) have both struggled to trade above their float price.
To avoid future disasters you need to pressure-test your argument for IPOs against key performance criteria. Skaffold’s IPO tips should help you unearth the next Flight Centre (FLT) and avoid the buying the next Myer (MYR).
Tuesday, July 02, 2013
The Australian dollar dipped below US92¢ on June 24 – its lowest point since September 2010 – and mounting projections that it could fall to around US85¢ within two years heralds mixed blessings for stocks on either side of the currency divide.
So if you subscribe to the view that a falling Australian dollar is (among other things) the inevitable by-product of waning foreign investor appetite for $A assets, you also need to ask what this means for the stocks you currently own, and how you can profit from it.
The correlation between the Australian dollar and share price movements – and interest rates, for that matter – has declined somewhat in recent years. Nevertheless, when it comes to identifying the most likely winners and losers within a falling Australian dollar environment, there are some useful guiding principles that you as an investor should understand.
Friday, May 24, 2013
The A$150 billion scaling back of expansion plans by Australian resources projects over the past year is having a devastating impact on mining services companies, and government projections suggest the mood of austerity sweeping the sector is here to stay. Official data released this week by government commodities forecaster, the Bureau of Resources and Energy Economics (BREE), suggests that investment in Australian resources projects could tumble by around 75 per cent over the next five years if the big miners continue to slash spending on new projects and expansions.
This outcome would see committed investment on resource projects fall from A$268 billion in 2012 to A$25 billion in 2018. BREE attributes much of this decline to too few high-value projects progressing through the investment pipeline to offset the completion of the LNG projects currently under construction. According to BREE’s research, austerity measures by mining heavyweight BHP Billiton (BHP) will see its spending fall by $4 billion over the next year, while rival Rio Tinto (RIO) has savings of $5 billion in its sights by late 2014.
What does this mean for mining services businesses?
Wednesday, February 20, 2013
The big news to flow through Skaffold overnight is Rio Tinto’s fall from B1 to C4. Two other companies fell from A1, reducing the number of A1-rated stocks in Skaffold to 42. NIB continued its impressive track record. The latest results for Boart Longyear (BLY), OZ Minerals (OZL) and Amcor (AMC), among others, are also available in Skaffold today.
Wednesday, October 24, 2012
Today when you login to Skaffold, navigate to the Skaffold Score Evaluate screen for AMP Limited, Coca-Cola Amatil, Westfield, Rio Tinto or Westpac (they’re just a few companies whose Skaffold Score changed last night). You’ll notice the 2012 columns look a little different. Skaffold’s interim Scores ensure you have access to the latest reported financial information for every company. Skaffold’s Scores are based on past reported results and do not take into consideration future value forecasts. The Scores are completely objective and manufactured independently of human intervention and personal opinion. Continue reading the see a summary of the companies that reported at 30 June and their resulting interim Skaffold Scores.
Monday, October 15, 2012
Next week we’ll release a major upgrade to Skaffold – interim Skaffold Scores. Interim Skaffold Scores will ensure you have access to the latest reported financial information for every ASX-listed company, and very soon some of the largest listed stocks globally.