Tuesday, October 28, 2014
This is Retail Food Group’s tenth year as a listed company, and while its market capitalisation has grown substantially from a sub-$100 million entity to approximately $770 million, the group’s strategy for success remains unchanged. Yesterday (27 October 2014) the company announced it had acquired of Gloria Jeans Coffees. RFG has consistently demonstrated its ability to identify good value acquisitions that can add value to the existing business. Integration has for the best part been seamless and this is evidenced in the company’s sustained profit growth.
Friday, June 13, 2014
Once regarded as boring and fundamentally defensive, global healthcare stocks have re-emerged over the last few years as a powerhouse for future growth. Even though the S&P 500's healthcare sector is up over 20 per cent in the past year, it continues to offer more compelling entry points than its ASX-listed counterparts.
Given the strong run experienced by healthcare stocks globally, there are few – if any – absolute bargains left to pick off. Nevertheless, when you factor in their potential future upside, they still offer more compelling valuation propositions than their Aussie healthcare stocks. We found 9 future top performers in Skaffold Global.
Thursday, May 29, 2014
With confidence in Australia’s building industry at six-year highs, there’s never been a better time to reassess the fortunes of listed stocks significantly exposed to the much-beleaguered construction sector.
If the economic data responsible for driving the construction sector forward is any indicator, the momentum of cautious optimism looks set to continue.
Of the 23 ASX-listed stocks with varying exposure to residential property, just five achieve Skaffold’s preferred A1, A2, B1 and B2 scores for balance sheet quality and business performance. They are Leighton Holdings (LEI), Reece Australia (REH), Finbar Group (FRI), Beacon Lighting Group Ltd (BLX) and Tamawood (TWD).
Tuesday, April 15, 2014
Healthcare represents less than one per cent of the ASX, one of the world’s most dynamic growth sectors.
That’s why most Aussie healthcare stocks trade at what’s known as a ‘scarcity premium’.
Encompassing healthcare facilities, drug and biotechnology stocks, and medical equipment suppliers and manufacturers, the overall quality and performance of Australian healthcare stocks is impressive. Half of the top 10 achieved Skaffold’s preferred stock ratings of A1, A2, B1 and B2 based on their latest financial reports.
Despite a recent sell off, which has seen share prices of the top 10 fall, on average, 3% since late February, safety margins continue to be high, ranging between -15 and -75 per cent.
With the ‘scarcity premium’ enshrouding local healthcare stocks, we went in search of better healthcare value stocks offshore and found 6 standouts.
Monday, March 24, 2014
If you take the 170-odd stocks that Skaffold currents rates as investment grade (A1, A2, B1 and B2) and then filter those with both a positive safety margin – trading at a discount to their intrinsic value – that are also forecast to grow their intrinsic value, we’re left with only a handful of stock to invest in. All things considered, these are the best quality companies that value investors could justifiably contemplate buying at current levels.
However, it’s important to remember that the share market is a constantly moving feast, and that companies can move in and out of investment grade status, as measured by the Skaffold Score, each reporting season due to any number of macro influences and company specific dynamics.
So with that in mind, we decided to go in search of companies that could potentially be knocking on the door of investment grade status if their fortunes continue to improve.
Tuesday, February 25, 2014
In the midst of ASX reporting season, it is easy to forget that global markets are also going through the same process.
Since 22 January 2014 hundreds of companies covered by Skaffold have released their interim or full year results. We looked inside the global markets covered by Skaffold and discovered some interesting opportunities. We’ve identified a handful of new opportunities, which have the qualities of top stocks, across the United States, Canada, Hong Kong, Singapore, United Kingdom, Europe and Switzerland.
With Skaffold’s new custom alerting tool it is really easy to keep track of which companies have reported and how their balance sheets have changed since their last financial results.
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.
Friday, December 20, 2013
With Christmas just around the corner, we’d like to extend our warmest wishes to you and your family.
To our members, thank you for your ideas, encouragements, criticism and compliments this year. We love to hear your success stories, and challenges. Every conversation helps us better understand how you use Skaffold and what we can do to make Skaffold even more useful for you.
Jeremy and Shepherd will be in the office over the Christmas/New Year period (excluding public holidays) between 9am and and 5pm, and the whole team will be back on board from 6 January 2014.
Chris, Vanessa, Toby, Jeremy, Shepherd, Thibault, Luca, James, Gareth and Roger - the Skaffold Team
Friday, February 01, 2013
The key to successful investing is buying quality assets at below their true value. In 2012 Money magazine asked the sharemarket experts at Skaffold.com to name the Top 50 undervalued stocks, including 5 standouts. The Top 5 shares returned 19.5% (including dividends), outperforming the overall market, which returned 17.9% over the same period. Now we unveil the top stocks for 2013.
For the second consecutive year Skaffold has provided a list of 50 stocks that have solid balance sheets and track records of good performance, and whose share prices offer value for money.
Of the 50 top-quality and value-for-money stocks fro 2013, 13 are forecast to offer yield and growth, 30 offer forecast growth and 31 positive forecast yield.