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 15, 2014
When to sell a stock is as, if not more important a decision than when to buy.
There are no hard and fast rules as to when an investor should sell, but there are a few general guidelines that you can follow.
Investors are notoriously emotional when it comes to selling. Have you sold shares only once the stock has hit rock bottom? Are you holding onto a dud stock hoping for a recovery?
Wednesday, July 10, 2013
As a Value Investor you intuitively understand the importance of buying quality stocks with a good underlying business model when they’re trading at a discount to their intrinsic value. Everything being equal, the greater the discount between price and value, the more compelling the reason to buy.
But while the opposite is equally true, investors are less confident about locking-in their profit by selling down a stock based on the same value proposition.
It’s true; the art of selling shares is considerably less predictable than buying. However, by identifying key trigger-points to prompt a timely portfolio review, we have provided you with some guiding principles for selling down a stock.
Tuesday, July 02, 2013
The Australian dollar dipped below US92¢ on June 24 – its lowest point since September 2010 – and mounting projections that it could fall to around US85¢ within two years heralds mixed blessings for stocks on either side of the currency divide.
So if you subscribe to the view that a falling Australian dollar is (among other things) the inevitable by-product of waning foreign investor appetite for $A assets, you also need to ask what this means for the stocks you currently own, and how you can profit from it.
The correlation between the Australian dollar and share price movements – and interest rates, for that matter – has declined somewhat in recent years. Nevertheless, when it comes to identifying the most likely winners and losers within a falling Australian dollar environment, there are some useful guiding principles that you as an investor should understand.
Thursday, June 20, 2013
With interest rates at historical lows and further cuts likely, investors chasing income shouldn’t overlook high quality listed stocks paying consistently high dividends. Australian tax laws – which refund the difference between the (30%) tax a company pays (on fully franked dividends) and your own personal tax rate - contributes to the attractiveness of owning stocks paying a high dividend yield.
But focusing on dividend yield - the dividend per share as a percentage of the share price - in isolation can be a trap, especially if a company’s current earnings are unsustainable and start deteriorating. Remember that if you do rely on income from your share portfolio, high dividends don’t always equate to good investments.
Thursday, January 31, 2013
Last week on our Facebook page we asked a question… Which stocks are on your 2013 watch list? You said media (we picked out News Corp (NWS) and Ten Network (TEN)), CSL Limited (CSL), Iluka Resources (ILU), QBE Insurance (QBE), Woodside Petroleum (WPL), Origin Energy (ORG), Cedar Woods Properties (CWP), LogiCamms (LCM), InvoCare (IVC), Amalgamated Holdings (AHD), GUD Holdings (GUD), DEXUS Property Group (DXS) and SP AusNet (SPN). This morning we logged into Skaffold and created a portfolio of your 14 stocks.
Friday, December 21, 2012
If you rely on income from your share portfolio, chances are you’re attracted to stocks that pay good dividends. The problem is a good dividend does not always equal good investment. Focusing on yield can be a trap. A company may have a high dividend yield because the share price is falling. And the share price may be falling for a very good reason. Poor and worsening economics – high debt, declining profits, negative cash flow – tend to lead to falling share prices. The secret is to find companies that pay “good” dividends.
Wednesday, October 24, 2012
Today when you login to Skaffold, navigate to the Skaffold Score Evaluate screen for AMP Limited, Coca-Cola Amatil, Westfield, Rio Tinto or Westpac (they’re just a few companies whose Skaffold Score changed last night). You’ll notice the 2012 columns look a little different. Skaffold’s interim Scores ensure you have access to the latest reported financial information for every company. Skaffold’s Scores are based on past reported results and do not take into consideration future value forecasts. The Scores are completely objective and manufactured independently of human intervention and personal opinion. Continue reading the see a summary of the companies that reported at 30 June and their resulting interim Skaffold Scores.
Tuesday, September 04, 2012
Share prices cannot outperform the underlying business indefinitely. Eventually price will trend towards value. When share prices rise above value, don’t be too greedy and don’t rely on hope.
Share prices rising significantly above value is Skaffold’s third reason to sell.
Wednesday, February 01, 2012
For investors, the two main places to put your money are shares and property. With both these markets well off their highs, 2012 is shaping as a good year to invest in either - or both. With this in mind, Money magazine enlisted experts to come up with a top 50 list for both shares and property.
Skaffold.com is an exciting new stock-selection application that rates all ASX-listed companies from A1 to C The Skaffold Score benchmark rating allows investors to focus on the best companies, avoiding those with doubtful fundamentals that may be wealth destroying. Skaffold.com has identified 50 value-for-money stocks for you to consider.