Thursday, July 16, 2015
In early January Alan shared his A1 investment plan with the Skaffold community. Alan’s disciplined and well thought-out rules were commended by his fellow members
Coming from an engineering background, Alan is probably a little more disciplined than the average investor. Nether less, Alan’s story is a timely reminder that to be a successful investor, one must have a strict set of investment rules. You must also have the emotional capacity to follow them.
Thursday, January 08, 2015
Have you ever wondered what stocks your fellow members are researching?
Do other investors love Skaffold’s Summary page as much as you do?
Here are the highlights of what you loved to use in Skaffold in 2014, and what stocks were on your radar.
Thursday, December 18, 2014
In February 2012 Skaffold graced the cover of Money magazine with our Top 5 and Top 50 stocks for 2012. Money readers loved it, and we have been privileged enough to share our Top 5 share tips each year since.
In 2012 we hypothetically invested $50,000 across the Top 5 stocks. In early 2013 we sold the 2012 stocks and reinvested the gains, including the $2,000-odd we received in dividends, into the 2013 stocks. We did the same thing in early 2014.
Had you followed this process, which by the way is methodical and not influenced by human opinion or bias, you’d be sitting on a portfolio worth just under $84,000.
Since inception the process has returned 75 per cent, or 77 per cent if you include franking. Annually, that’s a return of 22 per cent. Mr Warren Buffett would be proud.
Wednesday, October 29, 2014
The award of new contracts to the value of $130 million triggered a 10 per cent share price rerating for engineering and construction group, Seymour Whyte. Shares in the group had been sold down heavily from nearly $2.20 at the start of August to less than $1.40 prior to the contracts being announced, and regardless of this development it could be argued the company was already due for a rebound.
To put the contract wins in perspective, they are equivalent to 42 per cent of full-year revenues in 2013-14. Will Seymour Whyte come back up?
Monday, July 07, 2014
In 2012 and again in 2013 we picked a portfolio of five top Aussie stocks for Money magazine.
Looking over the portfolios today, there have been hits and misses. But that’s part of investing. Real estate is the same. Not every house/apartment/commercial property goes up in ‘value’.
That’s why we think that 7 out of 10 stock picks, with portfolio returns of 23 per cent and 38 per cent ain’t too bad.
Monday, May 05, 2014
Companies with a strong competitive advantage can share a few distinguishing characteristics: advanced technology, market dominance within sectors with high barriers to entry, scalability, great prospects for sales and profits, untapped global target markets, top management.
As a smart investor it’s your job to identify companies with a competitive advantage that’s sufficiently sustainable. That means it won’t ‘crash and burn’, leaving you with a potential value-trap with all its best days behind it.
Tuesday, April 01, 2014
Given the uncertainty over earnings growth in 2014/15, you understandably don’t want to pay any more than you need to for top stocks. But there are occasions when you shouldn’t be deterred from paying close to or indeed above intrinsic value (IV) for quality companies on a strong growth trajectory.
As a value investor, sometimes you’re better off buying a quality business with plenty of growth in front of it at a (slight) premium to its intrinsic value than trying to save money on a bad stock that’s languishing.
Tuesday, April 01, 2014
Now that the excitement of the reporting season has settled down and analysts have digested financial reports, we take a look inside Skaffold to discover well-positioned, top-quality stocks.
Of the 1767 ASX-listed stocks available for analysis in Skaffold, 163 achieve Skaffold’s preferred scores of A1, A2, B1 and B2. So less than 10 per cent are considered premium investment grade by Skaffold and analysis beyond top-line numbers is critical.
The services sector offers the largest choice of top-quality growth stocks, followed by technology, finance and capital goods.
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.
Wednesday, March 05, 2014
If there is anything remotely resembling a blemish on the performance of Queensland-based civil engineering company Seymour Whyte (SWL) in the last four years, it’s poorer than expected earnings per share (EPS) growth. Has the market’s response to company announcements tarnished an otherwise strong growth trajectory?
However as a company of preference for government authorities and joint ventures delivering large and complex infrastructure projects, SWL’s share price has steadily rebounded on the back of consistent value growth, a solid dividend, excellent cash flow, a strong balance sheet (in a net cash position), plus a string of price-sensitive new project contracts.
25 Skaffold members ‘Like’ Seymour Whyte. What’s your view?