Tuesday, September 23, 2014
With reporting season now behind us, all eyes should be on recent IPOs where core investors - courtesy of having satisfied escrow arrangements - are finally allowed to sell-down their stake in the business.
With the 58 floats in the 2014 financial year progressively coming off escrow, there could potentially be $3 billion in shares coming to market in the weeks ahead.
You need to watch closely whether the market has sufficient appetite to soak up this imminent flood of shares.
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.
Thursday, March 13, 2014
With the valuations of ASX-listed companies looking increasingly stretched, it’s more important than ever to use Skaffold’s filters to flag which stocks to avoid in 2014. The filters built into Skaffold stock research software help to remove stocks from your radar that aren’t regarded as investment grade – which by Skaffold’s measure is limited to stocks with an A1, A2 or B1 and B2 rating of balance sheet quality and business performance.
Removing ratings that don’t make the grade culls the stocks you should be seriously looking at down to around 160, which is only 10% of the 1,770 ASX-listed entities rated and evaluated by Skaffold’s automated algorithms.
Remember, even good stocks can and do lose their investment grade status for a myriad reasons, which surface following the release of interim and full year results.
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.
Thursday, December 19, 2013
During Skaffold’s recent webinar, How to invest in 2014, Roger Montgomery answered a number of questions asked by stock market investors.
Do you think we are in a pessimistic phase for analysts’ forecasts? Does Skaffold take into account the historically low provisioning for non-performing loans that the Big 4 banks are currently allowing for? Does Skaffold rate MTU as a Buy?
Read Roger’s answers and watch a video for more valuable insights.
Monday, December 16, 2013
Investors who expected the recent avalanche of floats to offer up the best chance of a sequel to the 17.4% return the market delivered to 30 June and 21% year-on-year, have received a crude reminder. For a myriad reasons, none the least being overpriced and over spruiked companies wired to uninspiring sectors, most IPOs are best left alone.
The number of lack-lustre floats this year is a reminder that all IPOs need to be pressure-tested to ensure they’re both investment worthy and attractively priced. That’s especially true where listings are owned by private equity firms queuing up to exit and hedge funds that are also circling for a piece of the action.
Our four IPO tips will help you identify true quality and value within the mixed bag of floats coming up in 2014.