One year ago, with the world entering a pandemic nightmare, who could have predicted the amazing first half reporting season just gone? Now, with bond rates climbing, the big question for investors is what lies ahead. We expected the results season just ended to be a positive affair.
We purchased shares in Scentre Group (ASX:SCG), owner of 42 Westfield shopping malls in Australia and NZ, during the pandemic, when the share price implied an impairment to the company’s Enterprise Value of as much as 30 per cent versus pre-crisis.
Reliance Worldwide (ASX:RWC), is a global provider of water control systems and plumbing solutions. The company sells innovative plumbing fixtures to enhance productivity and efficiency for end users including plumbers and home handymen. Reliance’s core product is the “Push-to-Connect” (PTC) fitting to connect two ends of a copper pipe, marketed under the Sharkbite brand.
Metal and Gold Detecting company Codan (ASX:CDA) is a top ten position in The Montgomery [Private] Fund and just outside the top ten in The Montgomery Fund. It has been a holding for several years after being picked by Andreas Lundberg and purchased between $2. 86 and $3. 35.
Since inception, the Montgomery Small Companies Fund has turned $1. 00 into $1. 2482, outperforming the S&P/ASX Australian Small Ordinaries Index by over 15% after all expenses to 31 January 2021. The only way to be part of significant growth is to be there at the start. Is your equities portfolio lacking exposure to high growth small companies?
The Commonwealth Bank (ASX:CBA) released its results for the six months to December 2020. The numbers were generally better than expected across most lines resulting in a better earnings result than consensus sell side forecasts.
After 37 years of declining interest rates that have fuelled asset price increases but laid waste to lower-risk income streams, it is perhaps surprising that now should be the time to be discussing dividends.
The impact from COVID-19 on Emerging Markets has, in many ways, been even more severe than the developed world. Many middle and low income countries have struggled to contain the outbreak, let alone report the infections and deaths with any degree of accuracy. Medical resources, which in most cases are in limited supply, have been stretched.
In this second interview, Gary Rollo and Bernard Wilson Chief Executive Officer of Cashrewards discuss the unit economics and the growth strategy post the company’s IPO. The Cashrewards business has a really clear formula – you invest to acquire customers for a relatively certain return which fuels growth for merchants as well as the Cashrewards business.
Over the last few months, increased risk-taking by investors has led to ballooning prices for loss-making businesses, IPOs in unprofitable firms, and speculative ‘assets’ like cryptocurrency. This is usually a signal that the market is too hot, and is due for a correction. Is the market at risk of an imminent collapse?
