Archive: May, 2019

May 28, 2019

What ‘appens next to the APX share price

By Roger Montgomery

Appen (ASX:APX) is one of Australia’s high-flying tech stocks – which collectively go under the WAAAX acronym. Its share price has almost tripled over the past year as many investors ride the Oz tech story. But to my mind, the company’s valuation looks extremely stretched. Exclusive Content This is exclusive content to subscribers on rogermontgomery. com.
May 28, 2019

We’ve reduced our global portfolio exposure

  In this week’s video insight Andrew takes a look at the environment for investing in global equities. With the prospects for a resolution of the US/China trade dispute diminishing, has the environment become less favourable?
May 24, 2019

Googling Alphabet’s Earnings

I thought it would be worth spending some time addressing Alphabet’s most recent quarterly financial result, not only because it’s businesses are massive in scale and value, with operations that are important to billions of people around the world (FYI Alphabet owns Google and YouTube), but also because Alphabet is an important holding in the Montaka long portfolio.
May 22, 2019

Alibaba keeps growing strongly

Last week Alibaba, the world’s largest retailer and e-commerce company, reported financial results for the final quarter of its fiscal year 2019. Alibaba’s Chinese online retail platform continued to grow strongly and drove astounding performance.
May 21, 2019

Beware: Watch for falling WAAAX!

By Roger Montgomery

Do Australia’s rocketing tech stocks – particularly the so-called WAAAX stocks Wisetech, Afterpay, Altium, Appen and Xero – deserve their lofty premiums? The market certainly thinks so. But I’m not so sure. I have previously alluded to the dangers of investing in the pointy end of the US technology boom and specifically warned about Uber.
May 17, 2019

Active management and the paradox of skill

In the world of active equity management, investment managers – ourselves included – seek to “outperform” the broader equity market index. This outperformance is typically referred to as “alpha” in the industry jargon. Of course, alpha can be both positive – when a manager outperforms; and negative – when a manager underperforms.
May 16, 2019

Does it really matter if the RBA cuts again?

By Roger Montgomery

The Reserve Bank of Australia recently opted to leave interest rates on hold. But with key parts of the economy in decline, it may be just a matter of time before it has to cut again. The question is: how effective will a rate cut be?

May 9, 2019

It’s official: Residential construction is crashing before our eyes

By Roger Montgomery

We’ve known for some time that the sharp decline in building approvals would lead to an equally sharp decline in construction activity. It has been our view that because building approvals have already fallen from 280,000 dwellings to 170,000 dwellings, a consequent decline in building activity would start to be seen about now.


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