Friday, October 27, 2017
Greece’s non-performing loans: A major hurdle to economic revival
As US President Donald Trump reaffirmed his commitment to Greece’s economic revival during Greek Prime Minister Alexis Tsipras’ official visit to Washington, the country’s banking sector continues to struggle with the longstanding issue of excessive non-performing loans (NPLs).
Monday, December 08, 2014
The S&P Dow Jones Indicies December 2014 Quarterly Rebalance occurred last week. Why do you need to know this?
The mandates for some fund managers require them to hold a position in companies in one of the indexes. So as soon as a company moves into an index, all of a sudden its on the radar of dozens, possibly hundreds, of institutional fund managers controlling a large chunk of Australia’s superannuation pie.
Monday, October 27, 2014
After mining and civil services contractor, MACA, negotiated a contract with Beadell Resources last week its share price increased from $1.18 to close the week at $1.37, representing an increase of 16 per cent.
While this is a substantial gain, the company had arguably been oversold and was coming off a 12 month low, which in itself was hard to justify. By any measure MACA has been one of the best performing mining services company since listing on the ASX in November 2010.
Tuesday, October 21, 2014
For ten consecutive years Melbourne IT (CODE:MLB) has been rated A for quality by Skaffold. In terms of business performance, the provider of online design, engineering and day-to-day services has failed to deliver.
However, an update by management after the market closed on Monday 20 October provided a glimmer of hope from an operational perspective, and also top end guidance was substantially ahead of some broker’s expectations.
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.
Monday, February 03, 2014
Following four years of achieving Skaffold’s second highest score for balance sheet quality and business performance, debt purchase and collection business Credit Corp (CCP) has declined to A3.
50 companies updated in the United States instance of Skaffold Global over the weekend, including Google (GOOG), Amazon.com (AMZN), QUALCOMM (QCOM), 3M co (MMM), Mastercard (MA), Colgate-Palmolive, Time Warner Cable (TWC), Harley-Davidson (HOG), Under Armour (UA), Whirlpool Corporation (WHR), Citrix Systems (CYXS) and McCormick & Company (MKC).
Thursday, January 30, 2014
Reports for around 300 global stocks flowed through Skaffold during January, including Apple, Microsoft, Procter and Gamble, AT&T, Facebook, Intel, The Boeing Company, eBay, Nike, Caterpillar, Starbucks, Kimberly Clark, Yahoo!, Motorola, Xerox, Oshkosh, The Bank of Nova Scotia, Metro Inc, Prada, Singapore Exchange, PZ Cussons and SGS Societe Generale de Surveillance.
Exclusively for Skaffold members, we’ve put together a list of companies whose latest financial results are now available in Skaffold, including updated Skaffold Scores and Safety Margins.
Wednesday, January 29, 2014
In the eight months since May 2013, the share price of Skaffold’s top global stocks has risen, on average, 10%. 15 of the 27 stocks identified in May 2013 have recorded rising share prices averaging just over 25%. Only four stocks have returned share price falls in excess of 10%.
The most impressive share price gains were recorded by Hong Kong listed casino operator Galaxy Entertainment Group (up 93%), UK-listed commercial television network ITV plc (up 49%), US-listed Global Payments Inc (up 42%) and Canadian businesses Pason Systems (up 37%) and Canadian Western Bank (up 35%). Four of the top 10 performers are listed on the Canadian Stock Exchange.
Hong Kong also recorded the largest decline, with Skyworth Digital Holdings share price falling 22% since May 2013. UK-listed Old Mutual (down 16%) and Petrofac (down 16%), Canadian supermarket chain Metro Inc (down 15%) and China Overseas Land & Investment, listed on the Hong Kong Exchange (down 9%) posted the largest losses.
Keeping in mind that Australian shares make up only about 2% of the overall world market, it makes sense to open up your investment universe to businesses simply not available on the local exchange.
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…
Friday, August 30, 2013
After a couple of weeks of relatively few new opportunities appearing in Skaffold, the flood gates have finally opened!
Vita Life Sciences (VSC) is the latest company to rise to A1 (from C2 no less!). The number of companies rated A2 was boosted overnight, to 83. Twenty-First Century Fox (FOX), Medusa Mining (MML) and Reverse Corp (REF) were a handful of companies that rose from A3 to A2.