Wednesday, September 03, 2014
If you’re an AFR or Smart Investor reader, you’ll know Trevor Hoey. Trevor has been uncovering small and mid cap stocks for Fairfax for more than a decade and is one of Fairfax’s most respected writers.
Trevor’s knowledge of markets, and small cap stocks in particular, is inspiring. Trevor knows how to cut through market fluff and see company fundamentals for what they are – solid future performers or hyped-up spec plays.
On 18 September Trevor Hoey will reveal how he uncovers top stocks before their share prices skyrocket. This is the first time Trevor has appeared at a live webinar. Don’t miss out on this unique opportunity to hear Trevor live – book your place now.
Tuesday, September 02, 2014
Recent moves by fund managers to lift their cash weight positions supports mounting speculation over a looming share market correction. But instead of fearing such an eventuality, investors should stop panicking and look to the opportunities that it presents.
Timing share market turning points is tricky at best. But beyond the minor corrections we’ve witnessed over recent weeks, sufficient indicators suggest that September could deliver a 10% sell-off. Why September..? Well firstly it’s not rocket science, this is the month markets typically sell-off. Beyond the ubiquitous geo-political risks and the macroeconomic stuff, like central bank policy, the other big driver of a correction is what the market is actually telling us.
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.
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, December 10, 2013
Despite popular belief, debt is by no means a dirty word when it comes to running a business. Indeed some businesses effectively utilise debt to accelerate growth.
But if the managers of your businesses don’t effectively manage the level of borrowings, they can easily undermine the overall value of your share investment portfolio.
Figuring out whether a company is self-funded or relies on external funding (a la debt) - after factoring in its operations, investments and financing - isn’t a simple exercise. Here are 4 key financial ratios you can use to understand if a business is self-funding and how it funds it dividends.
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…
Monday, September 02, 2013
If you have children of school age, you may have received an SMS from message service provider MGM Wireless (MWR). MWR allows schools to send parents an SMS if their child has not arrived at school, in addition to general schools news, event reminders, sport notifications, emergency notices and late breaking news.
With a market capitalisation of just $9.028 million, MWR is a nano-cap stock. Its Top 20 shareholders control just under 50% of the company (they are listed in the Investor Centre on the company’s website).
Trafalgar Corporate Group (TGP) is another smaller company to update in Skaffold on Friday night. Whilst retaining an average Performance Score of ‘3’, the company’s Quality Score improved from B to A. This improvement indicates TGPs balance sheet is less likely to suffer a major liquidity event or require additional capital to sustain its ongoing business activities.
Thursday, August 09, 2012
What does colour represent in Skaffold? Where does Skaffold source forecast earnings and dividends data? How can you identify companies with high debt and poor profitability? Jeremy Wilson answers these questions, plus many more.