Noosa Waters Share Investing

Following on from Mondays meeting I received the following link this morning regarding the Nearmap presentation for Goldman Sachs clients.  Click Here

A different take on the markets from Platinum Capital ( a renowned contrarian investment manager). Link to video follows   https://www.livewiremarkets.com/wires/this-is-when-money-is-made-in-markets

The following article appeared in the AFR on the 24 April 2017 I normally don't pay much attention to boutique investment managers masquerading  as journalists, but I have a high regard for Steve Johnson from Forager. In fact I have been waiting to invest in the LIC he manages since its IPO case but the share price premim to NTA is too high. "Outside Telstra's core fixed and mobile segments, there is little to speak of that could move the dial when it comes to earnings.  by  Steve Johnson In July 2008, Vittorio Colao was appointed as the fourth CEO in Vodafone Group's history. His revised strategy for the British-based multinational telecoms company was to focus on key markets where it held a top two position and pursue market consolidation where it didn't. The changes had profound impacts in Australia. A subsequent lack of investment in Vodafone's Australian joint venture with Hutchison led to a period of management and network i...

The following article comes from Tamim Investment Managers. With investment returns of up to 35% PA it is clearly working. I personally like the low risk nature of the investing High Quality - A Shopping List ​ ​ - March 2017 - Summary: Within our team we are focused upon investing in under-valued, high quality smaller companies. We are often asked how we define high quality so in this article we present our shopping list of attributes we look for in high quality businesses which we can invest in for the long term to generate superior returns for our clients.  Profitability & cash flows: The first deal breaker for us in the high quality search is whether a company is profitable and cash flow positive. In our minds profitability and positive cash flow generation are both core to what a business should be about, and thus we are not willing to speculate on loss-making companies which are aiming to more than cover their costs in the future. And it is not just...

Analysts often compare VOC to TPM, probably because they are in the same sector, have grown rapidly through acquisition and more recently have had a significant share price (SP) correction. There the similarities stop. Against my value investing checklist VOC Revenue growth PS- Good (recently) Equity growth PS - Good (too good) needs checking NTA growth PS- Poor Gearing PS- Reasonable EPS - Growing Margins - Poor ROE - Poor DPS - Growing Cashflow PS  (Acid test) - Good Management stability - Awful Managers equity - Minimal Expense management - TBA I would buy VOC with a view to a short term trade TPM Revenue growth PS- Consistent and very good Equity growth PS - Excellent NTA growth PS- Fair Gearing PS- Satisfactory EPS - Very good Margins - Excellent ROE - Excellent DPS - Growing Cashflow PS  (Acid test) - Good Management stability - Excellent Managers equity - Outstanding Expense management - Exemplary I would buy TPM with a view to short and lo...

NRW is a civil construction and mining services provider. They have a good story to tell. When you look at the charts you will note that there is a significant deterioration in the results EOFY 2015. The short story is they were sub-contracting to Samsung Construction who were building the Roy Hill iron ore mine for Gina Rienhardt. Samsung under estimated the cost of doing the job by $billions and NRW got caught up in the aftermath. Prior to the event they had a very successful track record and since appear well on the road to recovery. Since the EOFY they have re-capitalised the company, successfully taken over a competitor in the drill and blast division and fundamentals are all looking positive. It is a stock that I have been following when the SP was 40 cents earlier this fin year. Unfortunately I took my eye off it and the SP rose quickly to 58 cents. At the time I thought too much too soon, but the price rose to 85 cents recently. The SP has come back and I will be buying up ...

The above is an interesting investment opportunity for lateral thinkin g investors. CYA is an LIC that has a below average investment performance. Normally I would not be intersted, however following some activism by Wilson Asset Management (WAM) their are significant changes afoot, which may present a good investment opportunity. The potted version is;  The old investment manager has been sacked  The new investment manager (WAM), has a very good record of sustained out-performance. LIC's managed by WAM typically sell at a significant premium to NTA.  They are re-capitalising the business through a capital raising ( Taylor Collison / Bell). Details of the prospectus are not out yet, but expect the price to be near NTA. I have done  review of CYA in my LIC blog. If you are interested let me know and I will send you an invite to the blog. Depending on the content of the prospectus, I will probably invest in the recap.

Newsletters http://www.marcustoday.com.au  (Paid) I rate this one highly. It is produced twice daily, covering the normal macro news every broker sends out each week day morning, plus commentary on stocks in the news. It suits both investors and traders. The first edition is followed by an end of day summary. They include both fundamental and technical analysis in their coverage. There is also an educational article once per week and have a substantial back library. The news appears to be frank and fearless. Investment recommendations tend to favour themes with an eye on technical analysis. Not very thorough research but still useful. They also have “Stock Box” which is another feature I find very useful. I do not buy a stock without checking stock box( amongst other sources) . It costs about $600 PA. I subscribe. https://www.intelligentinvestor.com.au (Paid) Another source I rate highly. The provide financial fundamental analysis coverage for smaller stocks (whi...

The following article appeared in the AFR 1 April 2017 by Tony Featherstone. (Please excuse the formatting, AFR make if difficult to cut n paste. Never the less, a good read The recent takeover bid for Spotless Group Holdings highlights the volatility of some sharemarket floats – and the opportunities for investors who avoid the hype around new listings and watch and wait for better value down the track. Spotless raised $994 million in an initial public offering (IPO) in May 2014. Shares in the private equity-backed firm tumbled from a $1.60 issue price to 70¢ earlier this month as the market lost confidence after earnings downgrades. Downer EDI's takeover bid drove Spotless shares 50 per cent higher in a day. Investors who bought Spotless earlier this year got the company for less than half its IPO price. Spotless is an extreme example of IPO volatility. Many floats rally in their first year as a listed company, then slump as reality sets when earnings forecasts...

Online resources https://twitter.com/   - If you have favourite journalists, commentators or website, follow them on twitter. It is a really fast way of scanning the financial news and getting instant updates. Though I never post information to twitter. www.thebull.com.au  – A free and subscription site. I do not find the news section very useful. However each Monday they publish a Tip Sheet (Buy,Hold,Sell) from three analysts. Occasionally I find a tip useful and put it on my watchlist. The tips do require more in depth research! www.etfwatch.com.au/data-analysis  – A free site providing factual* information regarding EFT’s and LIC’s. A quick way to find basic information on specific products. * = Double check the facts because too often the facts are not correct. http://www.yieldreport.com.au/  A free site providing factual information Notes, Bond, Hybrids, Convertibles. No known issues, but not a field I have researched adequately. htt...