Wednesday, August 13, 2014
Overnight G8 Education’s (CODE:GEM) Skaffold Score fell from A3 to B3 – a decline in quality of the company’s balance sheet.
A quick check in Skaffold at GEM’s Capital History screen and bingo, there it is. In 2013 GEM had $114 million in debt on its balance sheet and a net debt to equity ratio of 0.06 per cent. Fast-forward six months to the half-year results and debt has more than doubled, to $262 million. GEM’s net debt / equity ratio now stands at 25 per cent.
Debt increases risk, and rising debt ultimately impacts how Skaffold rates the quality of a company’s balance sheet. That’s why GEM’s Skaffold Quality Score fell from A to B.
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…
Tuesday, August 13, 2013
Telstra’s share price is approaching a new high, thanks to its pleasing full year results. Management cited improved customer service and new channels of interaction, new products and a fall in complaints as contributors to the latest results. Today in Skaffold TLS continues to hold its B2 Skaffold Score for business quality and performance.
Other company results to flow through Skaffold over the last few days include Rio Tinto (RIO), FlexiGroup Limited (FXL) and Titan Energy Services Limited (TTN).