Wednesday, June 21, 2017
In its latest monetary policy meeting on Wednesday, the US Federal Reserve (Fed) raised its target fund rate range by 25bps to 1–1.25%, despite concerns on weak inflation data. The central bank also unveiled a detailed plan for trimming its massive balance sheet. Although the Federal Open Market Committee (FOMC) policymakers acknowledged the recent series of weak inflation readings, they remained confident about inflation returning to the target range in the medium term.
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.
Tuesday, November 18, 2014
After the market closed yesterday, diversified engineering and construction group Saunders International announced the pace of contract awards in the first half had been slower.
While this commentary could have an impact on trading on Tuesday morning, Saunders operates in an industry that is known for its lumpy earnings and it has demonstrated in the past an ability to successfully negotiate challenging conditions, even taking the global financial crisis in its stride.
Tuesday, November 04, 2014
Aristocrat’s B2 stock rating is its best since 2007, when it was rated A2. The company struggled with debt and delivered poor returns on equity between 2008 and 2012, however business performance has picked up over the last two years and improving profitability is expected to be sustained in 2015 and 2016.
ALL’s game-changing acquisition of US-listed Video Gaming Technologies (VGT) was completed on October 21. To put the US$1.3 billion VGT purchase in perspective, it effectively increased Aristocrat’s installed base in the North American gaming segment from 8,200 units to 28,400 units.
While the transaction has just been completed, if it were to make a full-year contribution in fiscal 2014 ALL’s management expects the acquisition would deliver earnings per share accretion of low to mid-teens on a pro-forma basis.
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.
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.
Thursday, May 29, 2014
Skaffold’s Funding Surplus / (Gap) shouldn’t be underestimated. Being able to see, at a glance, if a company spends more money than it earns can be a revelation.
The very best companies consistently produce a Funding Surplus. Even if they have a few bad years, top notch stocks bonce back into Funding Surpluses relatively quickly.
Finding companies that produce plenty of cash, and consistently end each year with excess money in the bank and a Funding Surplus, are now even easier to find in Skaffold.
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.
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.
Thursday, March 06, 2014
IPOs have the potential to give your portfolio entry-level access to quality stocks well positioned for a profitable future.
Unfortunately the share market has no shortage of IPOs that bombed, and relatively recent newcomers like Collins Foods and Myer have both struggled to trade above their float price. If Boart Longyear is any proxy, there’s no guarantee these stocks will rally any time soon. Since floating in 2007 BLY’s share price has fallen more than 97%.
So don’t get sucked into buying overpriced and overspruiked companies wired to uninspiring sectors with questionable growth projections destined to lose you money.