Monday, March 24, 2014
If you take the 170-odd stocks that Skaffold currents rates as investment grade (A1, A2, B1 and B2) and then filter those with both a positive safety margin – trading at a discount to their intrinsic value – that are also forecast to grow their intrinsic value, we’re left with only a handful of stock to invest in. All things considered, these are the best quality companies that value investors could justifiably contemplate buying at current levels.
However, it’s important to remember that the share market is a constantly moving feast, and that companies can move in and out of investment grade status, as measured by the Skaffold Score, each reporting season due to any number of macro influences and company specific dynamics.
So with that in mind, we decided to go in search of companies that could potentially be knocking on the door of investment grade status if their fortunes continue to improve.
Friday, August 30, 2013
At the start of August 33 top stocks were rated A1 by Skaffold, and another 94 were rated A2. Fast forward to close of trade on 28 August and 30 companies achieved Skaffold’s premium A1 Score for balance sheet quality and business performance. 80 stocks are rated A2.
Running a quick filter in Skaffold for A1 top stocks, then switching to the Table View to find those forecast to increase in value over the next few years, 21 A1 stocks remain. After a closer look to determine which companies have updated in Skaffold based upon their latest financial results, we are left with 13.
Of the 80 stocks rated A2, Skaffold forecasts positive growth for 53.
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.
Wednesday, August 07, 2013
Full year results for more than 20 companies have now updated in Skaffold. Transurban Group (TCL) sustained its less than impressive Skaffold Score for business quality and performance whilst Education provider Navitas (NVT) generated a return on equity of 31.5% and retained its A2 Skaffold Score.
Yesterday Downer EDI (DOW), Cochlear (COH), Iress (IRE) and Credit Corp (CCP) released their latest financial results.
Iress confirmed its acquisition of UK financial planning software company Avelo for a cash purchase price of £210 million (equivalent to AUD $360 million). Like its A1 peers, the market has already aware of IRE’s impressive performance. The share price is trading at a 50% premium to Skaffold’s intrinsic value estimate of just under $4.00. Is IRE another stock for the watch list should a market correction occur?
Friday, July 26, 2013
Iress Ltd (IRE) is rumoured to be in discussions to acquire Avelo, a UK-based financial planning software company.
IRE has been rated A1 by Skaffold for seven of the past 10 years. It achieved Skaffold’s second highest score for business quality and performance, A2, in 2004, 2007 and 2011. Alongside CSL Limited (CSL) and ARB Corporation (ARP), IRE is one of Australia’s most consistent, high performing businesses.
If successful, how will the acquisition impact IRE’s growth projections?
Friday, July 12, 2013
August reporting season is the busiest time of year for stock market investors. More than 60% of ASX-listed companies will release their full year results in August, with the smaller mining stocks reporting by 13 September 2013.
Skaffold’s reporting season calendar is now live and will be updated daily over the next few months. The calendar lists the most popular ASX-listed companies and their expected report date. Click here to view the calendar now.
Friday, February 22, 2013
The number of A1-rated stocks in Skaffold has risen, following the release of ARB Corporation’s (ARP) interim report, and full year results from software and programming company Iress Ltd (IRE). Woodside, BigAir Group, Alliance Aviation Services, Calibre Group, SMS Management & Technology and Toll Holdings now updated in Skaffold.
Wednesday, February 06, 2013
For the second consecutive year the team at Money magazine asked Skaffold to provide a list of 50 stocks that have solid balance sheets and track records of good performance, and whose share prices offer value for money. Of the 50 top-quality and value-for-money stocks, 13 are forecast to offer yield and growth, 30 offer forecast growth and 31 positive yield. Read on to discover how we used Skaffold to identify our Top 5 stocks for 2013.
Friday, February 01, 2013
The key to successful investing is buying quality assets at below their true value. In 2012 Money magazine asked the sharemarket experts at Skaffold.com to name the Top 50 undervalued stocks, including 5 standouts. The Top 5 shares returned 19.5% (including dividends), outperforming the overall market, which returned 17.9% over the same period. Now we unveil the top stocks for 2013.
For the second consecutive year Skaffold has provided a list of 50 stocks that have solid balance sheets and track records of good performance, and whose share prices offer value for money.
Of the 50 top-quality and value-for-money stocks fro 2013, 13 are forecast to offer yield and growth, 30 offer forecast growth and 31 positive forecast yield.
Wednesday, December 05, 2012
Technology One’s business spans research, development, sales, marketing, customer support, implementation and consulting. Its customers include local, state and federal governments, education institutions, community service providers and businesses operating in the healthcare, financial services and utilities sectors. TNE is one of Australia’s largest publicly listed software companies and has been rated A1 for 5 of the past 10 years. Aside from a slide to A4 in 2007, the company has maintained a consistently high Skaffold Score of A1 or A2.