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.
Friday, December 09, 2016
Ever wondered who provided the flooring and waterproofing solution for the $200 million upgrade to the Sydney Cricket Ground? No? Me either. But just in case you were wondering, it was Sika. You may not have heard of Sika but if you consider yourself a bit of a handy man or woman, it is highly likely you have used their products at some time. Next time you are at Bunnings, take a stroll down the sealants and adhesives isle and you will come across a lot of Sika products with their distinctive yellow and red packaging. Sometimes it is the really boring companies that provide the best opportunities.
Wednesday, November 30, 2016
For many of us, we grew up watching Disney cartoons - Mickey Mouse, Lion King, Snow White and the list goes on. Walt Disney produced its first cartoon in 1923, titled Alice’s Wonderland, and since then, the company grew from a humble cartoon studio into one of the largest media conglomerates in the world, with a market capitalisation of US$157B.
Wednesday, November 23, 2016
The travel industry has undergone major disruption over the past 10 years as online offerings have driven down the margins available to travel agencies. In this challenging environment, some firms have managed to innovate and thrive while others have suffered.
One firm that has found a niche and prospered is Corporate Travel Management (CTD).
Monday, November 21, 2016
In our November webinar Roger Montgomery and Chris Batchelor went through some attributes that they used to find 20 growth stocks for 2017. They gave a quick overview of market and business trends and how they use Skaffold to find these attributes. Read more to find out how they built the filter
Thursday, November 17, 2016
Watch our webinar where we reveal 20 growth stocks for 2017. Over the past two years, we listed our growth stocks for the coming year, in the November issues of Money magazine. On average they have done very well. This year we have shared the growth stocks for 2017 filter as well as 20 stocks that came up in the filter.
Watch this webinar recorded on 16 November 2016 where Roger Montgomery and Chris Batchelor speak about the transition from 2016 into 2017 and what to expect. They also discuss 6 stocks in detail.
Wednesday, October 26, 2016
The IELTS exam is one of the gates hundreds of thousands of people must pass through in order to enter Australia. Next time you talk to anyone from a non-english speaking country who has recently applied for Australian residency or enrolled to study a course here, ask them about their IELTS exam.
Thursday, October 06, 2016
Skaffold now drills deeper into your portfolio and offers insights to help you manage your portfolio’s risk. We have also added a new tab, which details unrealised and realised gains as well as dividends and improved the portfolio versus index performance tracking.