Thursday, March 24, 2016
Walk into any supermarket at the moment and there are rows of chocolate eggs, rabbits, bilbies and all manner of things chocolate. One brand that features prominently in those rows is Lindt. Lindt chocolate is made by the Swiss company Chocoladefabriken Lindt & Spruengli AG (CODE:LISN). It seems the world has a growing appetite for chocolate. Lindt's sales revenue has grown at an average of 8% p.a. for the last five years.
Wednesday, March 09, 2016
Ozforex is a provider of foreign exchange services. It is often viewed as part of the “hot fintech” (financial technology) sector as it seeks to disrupt the major banks, which have traditionally dominated foreign exchange. Ozforex competes by providing an online service that is simple to use. Importantly, it can offer better rates (tighter spreads between buy and sell exchange rates) to attract people away from the banks.
It commenced business in Australia in 1998 in a garage on Sydney’s northern beaches. It has grown quite rapidly and now has operations in six countries and a market capitalisation of about $500 million. In December it launched a single global brand, (CODE:OFX)
Wednesday, March 02, 2016
In theory dividends should always be paid out of profits. It is how companies pass back some of their success to their shareholders. Companies must choose how much of their profits to pay out as dividends and how much to keep to reinvest in the business. This is known as the payout ratio.
Companies that believe they can generate high returns on the profits they reinvest should keep a high proportion of those profits so they can generate greater wealth for their shareholders in the long term. The company grows through their successful reinvestment, driving up the value of the business and therefore the share price.
Thursday, July 09, 2015
In the May 2014 edition of Money magazine we compared Australia’s Top 10 stocks by market capitalisation against their global counterparts. We’ve just completed the process again: Australia’s Top 10 vs the world. You’ll be able to read our insights in Money’s August 2015 edition, on sale from 6 August).
To test our theory, we created a hypothetical $100,000 portfolio equally invested across the nine global stocks identified in the May 2014 article.
Including unrealised gains, dividends and currency gains, the stocks returned 29.9 per cent. By comparison the All Ords Accumulation Index returned 7.8 per cent. Skaffold’s global stocks outperformed the Index by 22.1 per cent, or 6.3 per cent if you exclude currency gains. That’s not too bad.
Thursday, October 16, 2014
US organisation SumZero (the worlds largest community of professional investors) recently held a competition amongst its members to find the most compelling argument for short-selling a stock.
The winning entry came from a Singapore based analyst called Sid Choraria. In his report Sid argues that the stock most likely to take a significant fall was Australian retailer Harvey Norman.
Wednesday, February 05, 2014
JB Hi-Fi’s impressive results flowed through Skaffold overnight, resulting in the company retaining its premium A1 Skaffold Score for balance sheet quality and business performance.
CEO Terry Smart cited positive comparable sales across the majority of JBH’s categories, the successful introduction of home appliances (JB Hi-Fi Home) and improvements in gross margins, combined with the company’s “ability to continually leverage the power of the brand and adapt to the ever changing retail landscape” as key drivers of the results. Online sales were up 15.4 % in HY14.
Click here to take a closer look at JBH in Skaffold.
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.
Monday, June 03, 2013
Whilst no one tool for successful investing should ever be used in isolation, return on equity (ROE) is regarded by Skaffold as the single best indicator of business performance, so long as debt levels are rational.
As a key measure of how well a company is managing its equity, return on equity - net profit divided by (shareholder) equity - determines the level of profitability a company earns on the equity capital it has raised and retained. As a value investor, you should be looking for stocks that can deliver a return on equity above Skaffold’s recommended 15 per cent.
Wednesday, April 17, 2013
Last night Skaffold’s General Manager Chris Batchelor appeared on the Sky Business Channel with Peter Switzer. Chris chatted with Peter about the recent research Skaffold completed on global investing trends.