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.
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…
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 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.
Tuesday, June 11, 2013
While often overlooked by investors when analysing fundamentals, there’s no better insight into what’s left for you as a shareholder in a business once it’s paid all its bills than an analysis of cash flow. When it comes to assessing the investment quality of a company's cash flow, you should be attracted to those with sufficient money in the bank to fund their operations and produce an ongoing Funding Surplus. The greater a company’s Funding Surplus the more likely it is to avoid excessive borrowing, expand its business, pay dividends and withstand any economic downturns.
You need to be wary of well-known large-caps with unhealthy cash positions which may still attract uninformed investors due to their size. High profile stocks with large debt and poor cash flow – which contributes to poor Skaffold Scores - include: Sonic Healthcare (SHL), Seven Group Holdings (SVW), James Hardie Industries (JHX), Toll Holdings (TOL), Oil Search (OSH), Woodside Petroleum (WPL), Leighton Holdings (LEI), Asciano (AIO), Duet Group (DUE), Tabcorp Holdings (TAH), Transurban (TCL), Brambles (BXB), Origin Energy (ORG), SP AusNet (SPN), APA Group (APA) and Sydney Airport Holdings (SYD).
Friday, February 08, 2013
After six months of improving business performance Cochlear (COH) has regained its A1 Skaffold Score. Other reports to flow through Skaffold overnight include Transurban (TCL), Paragon Care (PGC), Navitas (NVT) and Academies Australia (AKG).
Thursday, February 07, 2013
Skaffold’s Score for NeuroDiscovery (NDL), a company engaged in the development of compounds for the treatment of pain and listed investment company Ozgrowth (OZG), have changed following the release of their half-year results.
Thursday, December 06, 2012
High-yielding stocks are desirable, especially in an environment of low interest rates. For some investors it’s easy to get captivated by the promised yield supplementing their income, meanwhile ignoring the poor and worsening economics of the business. Skaffold’s latest column for Money magazine shows stocks market investors how to find stocks that accord to pay dividends.
Wednesday, August 01, 2012
Over the next six weeks more than 60% of the companies listed on the ASX will report their full year results.
How will the results flow through Skaffold?
Throughout August Skaffold members will receive a weekly email highlighting a selection of companies that have reported.
Following are a few well-known companies scheduled to report their full year results over the next few weeks...
Telstra (TLS), Transurban Group (TCL), Stockland (SGP), Cochlear (COH), Credit Corp (CCP), Tabcorp (TAH), Commonwealth Bank (CBA), Newcrest Mining (NCM), Brambles (BXB), ASX Limited (ASX), Echo Entertainment (EGP), Duet Group (DUE), Treasury Wine Estates (TWE), UGL Limited (UGL), Ansell Limited (ANN), Wesfarmers (WES), Carsales.com (CRZ), Goodman Group (GMG), Monadelphous (MND), Boral (BLD), Super Retail Group (SUL), Fairfax Media (FXJ), Qantas (QAN), Cabcharge (CAB), Billabong International (BBG), BHP Billiton (BHP), Woolworths (WOW), CSL Ltd (CSL), Fortescue (FMG), Origin Energy (ORG), Amcor (AMC), AGL Energy (AGK), QR National (QRN), Insurance Australia Group (IAG), Crown (CWN), CFS Retail Property Trust (CFX), Sonic Healthcare (SHL), Ramsay Healthcare (RHC), Worleyparsons (WOR), Lend Lease (LLC), Transfield Services (TSE), Perpetual (PPT),
Click here to view a detailed reporting season calendar.
Monday, July 02, 2012
More than 50% of the companies listed on the ASX will report their full-year results next month. You can review your portfolio by checking the cash position of the ones you hold and removing those that don’t display high-quality economics. Skaffold has put together a list of large, well-known companies with unhealthy cash positions. Despite having market caps of at least $2 billion, their generally high debt and poor cash flow contribute to Skaffold Scores of B4, B5, C1, C2, C3, C4 or C5.