Thursday, March 23, 2017
On March 15, 2017, the US Federal Reserve (Fed) raised interest rates by a quarter percentage point from 0.75% to 1.00%. This move was in line with market expectations as many Fed policymakers had given strong indications of a possible rate hike in past few weeks. The central bank hiked rates for the first time this year, the second time in three months. The Federal Open Market Committee (FOMC) decided to increase a key policy rate citing improved labour market conditions and inflation. The central bank kept its economic projections unchanged, as Fed Chair Janet Yellen stressed that the rate hike should not be seen as an anticipatory response to forthcoming fiscal policies.
Tuesday, March 21, 2017
Most of the US equities finished the week higher as majority of the US indices ended in green. The Dow Jones Industrial Average edged up 0.1%, the NASDAQ gained 0.7% and the S&P 500 added 0.2% during the week. Most of the equities moved sideways in the first half of the week ahead of the Federal Reserve’s (Fed’s) monetary policy meeting scheduled on Wednesday. However, markets rallied following the much anticipated rate hike, the Fed raised key rates by 25 basis points to a range of 0.75% to 1%, and delivered a clear message that it believes the US economy is functioning normally.
Monday, March 20, 2017
The US initiated the process to deploy an advanced missile defense system, known as Terminal High Altitude Area Defense (THAAD), in South Korea. The action followed North Korea’s test launch of four ballistic missiles into the Sea of Japan, which was perceived as a threat to US naval bases in Japan. In view of the rising security threat following the series of missile and nuclear tests by North Korea, the US and South Korea mutually agreed to fast-track the deployment of the THAAD system. THAAD is an advanced defense missile, designed to destroy short- and medium-range ballistic missiles at a high altitude.
Thursday, March 16, 2017
US equities finished the week (ended 10 March) modestly lower, snapping a six-week gaining streak. Trading activity remained subdued for large part of the week, as investors took a cautious stance ahead of February’s job report and Fed’s policy meet on 14−15 March.
Most European equities traded in a narrow range on account of muted market activity ahead of the US Fed meeting and European Central Bank (ECB) monetary policy meeting scheduled for Thursday. Moreover, uncertainty surrounding the next week’s parliamentary elections in Netherlands and upcoming elections in France added some downward pressure on equity indices.
Asian indices edged up after treading water for most part of the week, as domestic economic and political data provided much needed support. Although disappointing performance by developed market peers added some downward pressure on Asian equities, local cues pushed indices higher.
Wednesday, March 08, 2017
US President Donald Trump aims to “Make America Great Again” through his distinct approach to global trade, which he calls “America First”. Trump in his inaugural address claimed, “For many decades, we have enriched the foreign industry at the expense of the American industry” and “made other countries rich while the wealth, strength, and confidence of our country dissipated over the horizon”. After Trump’s first few weeks in office, it is evident that the world’s largest economy is shifting gears to a protectionist position in its international trade. He has already withdrawn from the Trans-Pacific Partnership, cleared his intent to renegotiate trade deals including NAFTA, as well as spoken of imposing tariffs on imports and corporates shifting jobs abroad.
Monday, March 06, 2017
Over the last few years Skaffold has evolved to include some keys features that were suggested by members. Based on customer feedback we have added a few more ways to review and calculate portfolio performances. The new portfolio graphic shows at an instant underperformance, outperformance and importantly money value of gains and losses. Stock selection performance can still be easily compared vs All Ords Total Return Index (the renamed All Ords Accumulation Index).
Wednesday, February 01, 2017
It’s reporting season, that time of year when Skaffold re-rates company fundamentals. New companies will rise to A1, and some top-rated companies will fall from grace.
Skaffold’s free reporting season calendar is your go-to place for ASX company reporting dates.
G.U.D. Holdings, Downer EDI and Tabcorp Holdings kick off the season this week. The bulk of companies will report in February.
Check out Skaffold’s 2017 Interim Reporting Season Calendar now and find out when your companies are scheduled to report.
Wednesday, January 18, 2017
Kathmandu is a New Zealand company with listings on both the NZ and Australian stock exchanges.
It is a retailer of outdoor wear and equipment, with 65% of revenue derived in Australia, 33% in New Zealand and a minor amount in the UK. Among adventure enthusiasts it is well known for its gear as well as for its big sales three times a year.
This reputation for discounting got the company into a bit of trouble in 2015. Too much discounting can become a vicious cycle as customers are no longer willing to pay full price, necessitating more discounting to move stock.
Friday, January 13, 2017
This post is not so much about Bellamy’s but how an investor could have potentially avoided the current Bellamy’s debacle.
As a quick background Bellamy’s is an organic infant formula company supplying supermarkets with its branded product and was highly imported brand in China. For 2015-2016 the stock was the share market darling with analysts happy to place Buy recommendations and project exponential sales and earnings growth. With phenomenal growth Bellamy’s appeared attractive on many valuation screens, including our Skaffold screens which relies on reported financials and these consensus analyst projections. Alas it proved to be an Icarus stock; high growth presents its own supply problems for the company and generates high expectations from investors. As the December 2016 update showed these expectations were disappointing, resulting in the shareprice rout we are currently seeing. The point of this post is to identify red flags investors should have seen or considered
Friday, December 16, 2016
If you play video games, whether it is on your mobile, console, or computer, chances are that you have played a game made by Electronic Arts. The premium game developer is one of the leading brands in the industry with more than 400M gamers (~600M if we add mobile gamers). EA owns a portfolio of well-known titles including: FIFA, Madden NFL, Star Wars Battlefront, Battlefield, The Sims, Need for Speed, and Plants Vs Zombies.