Friday, September 05, 2014
S&P announced changes to the ASX 20, ASX 200, ASX 300 and All Australian 50 and 200 today.
The mandates for some fund managers require them to hold a position in companies in one of the indexes. So as soon as a company’s moves into an index, all of a sudden its on the radar of dozens, possibly hundreds, of institutional fund managers controlling a large chunk of Australia’s superannuation pie.
For private investors, the S&P rebalance may represent an opportunity to secure your place in a business (only the best ones, of course), whose market capitalisation could be artificially pushed up by institutional shareholders scurrying to rebalance their portfolios.
Thursday, May 29, 2014
Another positive announcement, another share price spike.
Given Technology One’s track record – a top rated stock for nine of the past 10 years – should the market be surprised?
Skaffold’s automated algorithms crunched the half-year numbers last night and deemed TNE worthy of retaining its A1 status. What’s your view? Do you already own TNE? Are you buying?
Tuesday, April 01, 2014
Given the uncertainty over earnings growth in 2014/15, you understandably don’t want to pay any more than you need to for top stocks. But there are occasions when you shouldn’t be deterred from paying close to or indeed above intrinsic value (IV) for quality companies on a strong growth trajectory.
As a value investor, sometimes you’re better off buying a quality business with plenty of growth in front of it at a (slight) premium to its intrinsic value than trying to save money on a bad stock that’s languishing.
Friday, February 28, 2014
We’ve just finished the last week of February and the majority of ASX stocks have reported their interim or full year results.
We’ve just finished the last week of February and the majority of ASX stocks have reported their interim or full year results. A few to watch over the coming days is 2012 Money magazine top stock and Skaffold favourite Seymour Whyte (ASX:SWL), who released a positive sounding report recently, as did Flight Centre (ASX: FLT) and Blackmores (ASX:BKL).
A few to watch over the coming days is 2012 Money magazine top stock and Skaffold favourite Seymour Whyte (ASX:SWL), who released a positive sounding report recently, as did Flight Centre (ASX: FLT) and Blackmores (ASX:BKL).
Monday, August 26, 2013
Is a trend appearing amongst casino and entertainment stocks?
Over the weekend full year results for Echo Entertainment Group (EGP), Tatts Group (TTS) and Crown Limited (CWN) flowed through Skaffold. Echo’s Skaffold Score improved from B3 (based on the company’s interim results) to B2. B2 is one of Skaffold’s preferred scores. Tatts Group (TTS) rose from C4 to B3 and Crown’s improving business performance lifted its Skaffold Score from A4 to A3.
TTS and EGP are trading at premiums of more than 60% to Skaffold’s 2014 intrinsic value estimates. CWN is trading at a 40% premium. Whilst the intrinsic value of all three businesses is forecast to rise at an impressive rate over the next two years, looking at the Skaffold Line chart of each stock it appears the market has already factored in this future growth.
What’s driving the improving performance of gambling-related stocks? Is the increasing accessibility of internet gambling driving this trend. And what does this mean for the wider community?
Tuesday, August 13, 2013
As an investor in shares you ideally want the market to progressively keep climbing, and prior to the GFC this is pretty much what it did. Within this ‘buy & hold’ environment, investors who bought (good) stocks could safely park them in the bottom drawer, knowing that the share price would ride the momentum in an upward trajectory.
In an environment where volatility is the ‘new norm’, a ‘set & forget’ approach may need to give way to a strategy for actively managing shares.
One of the ways you can balance a value investing strategy – based on the worth of the business appreciating - with share market volatility is through what’s called Long/Short investing. If done successfully, a Long/Short strategy can add significant value to your share portfolio.
Tuesday, July 16, 2013
As an astute share investor you should always be on the hunt for great ‘value-plays’ or quality stocks trading at a discount to their intrinsic value. But if you don’t keep an eye on a stock’s underlying business, and where the profits are coming from, what you thought was a buying opportunity could turn out to be an accident waiting to happen.
Commonly referred as ‘value-traps’, these are stocks that you may have bought into when they appeared to be cheap based on (low) multiples of earnings, cash flow or book value and trading at a bright green positive safety margin. However, if after an extended time period the stock never improves, there’s a strong likelihood that you’ve fallen into a value trap that needs to be dealt with before it gets any worse.
Tuesday, February 26, 2013
Over the weekend more than 70 companies updated in Skaffold. The number of A1-rated companies fell to 39, and A2-rated companies to 81 companies.
Companies to update based on their recent interim or full year results include include Breville Group (BRG), mining services business Sedgman (SDM), for casino operators Crown Group (CWN) and Echo Entertainment Group (EGP), BHP Billition (BHP), Fortescue Metals Group (FMG), Iluka Resources (ILU), Cabcharge (CAB), Fleetwood (FWD), Fantastic Holdings (FAN), Village Roadshow (VRL), Adelaide Brighton (ABC), Alumina (AWC), Goodman Group (GMG), APN News and Media (APN), Tatts Group (TTS), Infomedia (IFM), Data#3 (DTL), Ausenco (AAX), Magellan Financial Group (MFG), Insurance Australia Group (IAG), AMP Limited (AMP), Seven West Media (SWM), iiNet (IIN), Macquarie Radio Network (MRN), Fairfax Media (FXJ), Envestra (ENV), Brambles (BXB), Chandler Macleod Group (CMG), Austin Engineering (ANG), Codan (CDA), The Reject Shop (TRS) and NRW Holdings (NWH), Platinum Asset Management (PTM), Mermaid Marine (MRM), Australian Share Registry (ASW), Super Retail Group (SUL), Amalgamated Holdings (AHC), TCT Tomlinson (RCR), Servcorp (SRV), SEEK (SEK), ASX Limited (ASX) and Origin Energy (ORG).
Wednesday, January 02, 2013
Which stocks have Skaffold members been searching for, evaluating and comparing side-by-side over the past few months? Read our latest blog post to find out!
Tuesday, October 02, 2012
Companies listed on the ASX with a June year-end have been updated in Skaffold, now that the reporting season is complete. The big question is: where should investors focus their attention? Using four criteria we have come up with several standouts.