Wednesday, November 19, 2014
FlexiGroup’s established operations have for the best part been performing well, and good growth has been achieved by recent acquisitions. The vertically integrated model is working well for FXL, leaving it well positioned to meet its goal of being a digital finance leader.
When markets are turbulent, outperforming guidance is sometimes required to maintain share price equilibrium. Consequently, FlexiGroup will be a stock to watch closely when it opens this morning.
Tuesday, May 20, 2014
Since first flagging Titan Energy Services (TTN) as a stock on an impressive growth trajectory in August 2013, the company’s share price has been on a roller coaster ride.
TTN was trading at $2.27 when Skaffold crunched its 2013 full year results through its automated algorithms, and upgraded the company’s Skaffold Score from B3 to A2. By late October the share price hit $3.71 before retreating back to $2.07, as at 19 May 2014 close of trade. It was $2.32 on 12 May 2014. TTN’s share price isn’t for the feint hearted.
Today Titan Energy Services issued a trading update, and announced its win of new contracts. Here’s a snapshot of the good and bad disclosed in today’s announcement.
Saturday, April 12, 2014
Technical and fundamental analysis may be polar opposites when it comes to investing in shares. By combining the two disciplines, you can potentially enhance the timing of your buy and sell decisions, especially within a share market where volatility is the new-norm.
To understand why technical and fundamental analysis can provide a more complete picture of a company and what’s happening on the share market, you need to recognise what each methodology can bring to your decision-making.
You can’t apply a value-investing methodology to stock selection if you don’t know what a company is worth. That’s where fundamental analysis comes in. By analysing historical financial data along with forecast earnings and profit projections, you’re in a better position to predict future company performance and growth.
Technical indicators, which focus on volume and price, try to gauge the direction in which share prices might be heading. This technique can help you time your entry into top quality stocks when they’re most likely to be cheaper.
Friday, February 14, 2014
New opportunities were thin on the ground this week, with the majority of companies to report experiencing deteriorating Skaffold Scores. Many stocks also continue to trade at large premiums to Skaffold’s intrinsic value estimates.
After 6 years of membership in Skaffold’s premium group of companies, Domino’s Pizza Enterprises (DMP) has declined to B3.
This is a great example of Skaffold’s ability to demystify company results and present the facts of the case, so to speak.
Friday, February 07, 2014
REA Group (REA) and Titan Energy Services (TTN) have delivered impressive results this reporting season, and retained their A1 and A2 Skaffold Scores. TTN first came on our radar last reporting season when its improving balance sheet and economic performance resulted in its Skaffold Score improving from B3 to A2.
Friday, December 20, 2013
Having watched growth stock FlexiGroup Ltd (FXL) rally hard on the back of favourable market sentiment this year, value investors can be forgiven for wondering whether now is a good time to join the herd and buy into this exciting financial services group.
Some brokers have a consensus target price in excess of $5.00 on the stock, yet based on the 19 December closing price of $4.21, FXL is trading at a 27% premium to its intrinsic value, according to Skaffold. As a value investor this should trigger a big red flag, despite on many metrics FXL’s share price has an outstanding track record.
Friday, September 06, 2013
With reporting season now complete (except for the very small mining companies), let’s take a look at what opportunities Skaffold identified over the last four weeks, and how those stocks have performed.
The three standout stocks this reporting season, which we wrote about in blog posts and weekly reporting season update emails, are Titan Energy Services (TTN), RCR Tomilson (RCR) and MGM Wireless (MWR). TTN’s share price is up 32%, RCR 19% and MGM Wireless 37%.
As a wrap up to a successful reporting season, here’s a summary of the stocks that came to our attention over the past month. Aside from TTN, RCR and MWR, at the time of initial writing all the stocks listed below were trading at a premium to Skaffold’s intrinsic value estimate.
In order of appearance, and with previously published comments, this year’s interesting stocks were…
Thursday, August 15, 2013
Since April 2011 Newcrest Mining (NCM) shareholders have been punished with a falling share price that has declined from more than $42.50 to $9.30. NCM released its full year results on 12 August. Revenues decreased 15% and the company reported Net Profit After Taxes of $5.78 billion. These poor results and less than impressive business performance resulted in NCM’s Skaffold’s Score falling from B3 to C4. A company rated C4 is not considered investment grade by Skaffold.
Financial results for Cochlear (COH), JB Hi-Fi (JBH), Tabcorp (TAH) and Coffey International (COF) are now available in Skaffold.
Tuesday, August 13, 2013
Telstra’s share price is approaching a new high, thanks to its pleasing full year results. Management cited improved customer service and new channels of interaction, new products and a fall in complaints as contributors to the latest results. Today in Skaffold TLS continues to hold its B2 Skaffold Score for business quality and performance.
Other company results to flow through Skaffold over the last few days include Rio Tinto (RIO), FlexiGroup Limited (FXL) and Titan Energy Services Limited (TTN).
Tuesday, May 21, 2013
Once you have committed your hard earned money to a company listed on the stock exchange with the expectation of a financial return over time, you are by definition an investor.
What now separates you as a smart investor from the gambling or speculating variety is the quality of thinking that you bring to that investment going forward.
Smart investors will attempt to the minimise risk associated with holding a listed company while maximising returns, whereas gamblers and speculators are happy to trade-off higher levels of risk on the off chance it might deliver higher-than-average returns. Are you a smart investor?