Wednesday, September 30, 2015
With reporting season done and dusted – except for tiny speculative mining companies that don’t make money anyway – now is a prime time to go on the hunt for top stocks to buy.
If you cleaned out your portfolio before reporting season, you’ll have a wad of spare cash sitting in the bank begging to be invested. Even if you don’t have cash to invest right now, learning how to find great stocks to buy is a good thing to practice. You may even want to set up a pretend portfolio to track how you’d have gone, had you actually invested your money.
Paper trading is a great way to get started and feel your way around the sharemarket, without committing your hard-earned cash. Whether they’re listed on the sharemarket or privately owned, the very best companies have 10 features in common. Once you know how to spot top stocks, and avoid their lesser quality counterparts, sharemarket investing will be a breeze.
Friday, February 20, 2015
If you missed out on your copy of Money magazine this month, here are the best bits from Skaffold’s piece on the Top 50 and Top 5 Stocks for 2015.
Had you initially invested $50,000 and bought and sold the top-rated stocks each year since 2012, you’d be sitting on a portfolio worth just over $87,000. A remarkable result in just three years!
Each year’s five-stock portfolio was chosen using Skaffold’s digital stock research tool – embraced by thousands of private and professional investors – whose methodical approach isn’t influenced by opinion or bias.
Thursday, October 23, 2014
What are the shares of the future, the ones that should find a place in every share investor's portfolio?
The Sydey Morning Herald asked five leading share analysts to nominate five shares each.
The picks have to be suitable for conservative investors who intend to invest for the long term.
Naturally, those requirements lead to the larger companies that tend to pay higher dividends than other companies and often, but not always, have high levels of franking credits.
With interest rates at a 50-year low, investors have been chasing yield on the sharemarket.
As a consequence, share prices of the big dividend payers, such as most of the big banks and Telstra, have, until recently, risen strongly over the past two years.
Much of the sell-off on the Australian sharemarket over the past few weeks has simply followed selling on Wall Street.
Tuesday, September 23, 2014
Problems occur when the managers of your businesses overexpose their balance sheet to too much debt and don’t produce sufficient cash flow to support the interest payments. Failure to develop, and implement, a clear growth strategy can also unravel a highly geared balance sheet.
As crazy as it sounds, prior to the GFC some companies borrowed the funds necessary to pay their dividend. Suffice to say none remain in business today. Ten years ago management of ‘under-geared’ companies – those with little to no debt – were accused of running ‘lazy’ balance sheets. Today they’re lauded for good financial management.
Thursday, September 04, 2014
Highly geared balance sheets can unravel when management fail to implement a clear growth strategy.
Smart investors focus on debt levels. Why? Because debt has to be repaid, and creditors will always recoup their losses before shareholders.
Money magazine hit the newsstands today. Check out page 82 for three ratios you can use to understand if a business can handle its debt obligations. You’ll also discover five Aussie stocks that make borrowing work for them.
Monday, September 01, 2014
The past 12 months or so have seen a record number of floats on the sharemarket.
With about $14 billion worth of initial public offerings over the past year, it is the biggest year since the GFC for bringing companies to market.
In the main, investors have been well rewarded. Of the bigger listings, catering and cleaning business Spotless Group, the credit reporting business Veda Group, Genworth Mortgage Insurance Australia and Healthscope, the hospital, medical centre and pathology operator, have share prices trading significantly above their float prices.
Wednesday, July 23, 2014
Stock broker and market commentator Marcus Padley was kind enough to join us for a recent webinar in which he shared his top investment themes for 2015.
Banks, Retirement, Agriculture and Housing are all on Marcus’ radar, what themes are you watching for 2015?
Wednesday, April 02, 2014
Why would you invest overseas instead of, or as well as, on the ASX? With differing laws and tax systems, the risk from foreign exchange and a higher cost per trade, is it really worth it?
At Skaffold's webinar Steve MacDonald, Chief Investment Officer at Infinitas Asset Management, shared why his clients portoflios include overseas stocks.
Thursday, February 06, 2014
The latest selloff within emerging markets, amid fears over how they’ll handle tighter global liquidity (courtesy of further ‘Fed’ tapering) serves as a reminder of what happens when investor overreaction to negative short-term sentiment belies fundamentals.
Historically, such spikes have tended to be lucrative for value investors in emerging markets - now trading at a 40% discount to developed markets – and this presents some excellent buying opportunities. This is certainly shaping up to be the case for mid-cap London-based specialist asset manager, Ashmore Group (LSE: ASHM), which virtually has all of its assets in emerging markets.
Tuesday, February 04, 2014
Anyone who was shocked and stunned by the earnings downgrade that QBE Insurance Group (QBE) dropped on the market late last year (9 December 2013 to be precise) probably hadn’t been paying too much attention to the insurer’s antics in recent times. For starters, QBE has made an art form out of missing consensus market estimates over the past five years, and has made three downgrades in less than 18 months.
Investors had every right, however, to punish QBE for creating greater uncertainty around its future earnings power when it issued yet another profit warning. Unsurprisingly, the share price tumbled by 30%-plus following the company’s 9 December revelation that an underlying cash profit of US$850 million for the full year would turn into a reported $US250 million loss (for the year to December) following a string of write-offs within its problem-riddled US division.
In fairness, recently appointed CEO John Neal and a flurry of other management changes - including new CFO Patrick Regan and new chairman Marty Becker - were not responsible for QBE’s disastrous entry into the US mortgage insurance market, and since taking over have already started cutting costs and streamlining operations. Neal’s challenge turning around the US business can’t be overstated, and hopefully he won’t find anymore nasty, as yet undisclosed legacies of former CEO Frank O'Halloran.