Archive: August, 2020

August 27, 2020

Is the sun rising or setting on Facebook?

The conventional wisdom today is that Facebook is a mature behemoth that is under intensifying risk of being penalised in a multitude of possible ways by regulators. It is certainly a behemoth. The scale of Facebook really is quite difficult to imagine.
August 26, 2020

APE and SUL make hay from our newfound spending habits

By Roger Montgomery

What do A. P. Eagers Automotive (ASX:APE) and Super Retail Group (ASX:SUL) have in common? Well, for starters, these firms have seen their revenues turbo charged by our changed spending habits since the start of Australia’s COVID-19 travel restrictions.
August 26, 2020

The firms that beat expectations this reporting season – and those that missed

By Roger Montgomery

The majority of companies on the ASX100 and ASX200 have now reported. Many have beaten estimates. And, reassuringly, guidance is less negative than most market watchers had expected. This brings hope that FY21 may not be so bad for equity investors after all. One pattern has emerged from this reporting season and we may have run theory to thank.
August 25, 2020

Reliance Worldwide continues to reward investors

By Roger Montgomery

Reliance Worldwide (ASX:RWC), a global provider of water control systems and plumbing solutions, is a business we’re very happy to own. True to its name, the company’s latest earnings announcement was extremely positive, which led to a strong bounce in the share price.
August 24, 2020

Winning in the age of enterprise digital transformation

COVID-19 has proved challenging for many investors, but the pandemic is also accelerating a long-term structural trend that presents significant investment opportunities – the digital transformation of enterprises. Flashback a few months and it’s easy to see how this unfolded. Almost overnight, entire workforces began working remotely and demand for digital collaboration tools skyrocketed.
August 20, 2020

Five companies likely to benefit from a COVID-19 vaccine

By Roger Montgomery

As with everything else, there are two camps when it comes to investment conditions today. There are two camps regarding whether the market is expensive (it probably is), whether economic conditions are deteriorating or improving, whether governments and central banks can continue Keynesian intervention indefinitely, and there’s two schools of thought as to whether there’ll be a vaccine.
August 18, 2020

Why we own shares in Alliance Aviation

By Gary Rollo

When it comes to investing, we’re not big fans of airlines.  But in the case of Alliance Aviation Services (ASX: AQZ), we’re happy to make an exception. You see, Alliance operates fly-in fly-out charter services for Australian mining companies, and its flights are in demand.
August 17, 2020

CBA pays a dividend, but is there trouble down the pike?

Shareholders in Australia’s largest bank, the Commonwealth Bank of Australia, would have been relieved to read that the bank has delivered a decent full-year result – with a 98 cent dividend to boot.   But the near term may not be so bright, with the bank pointing to earnings headwinds in the months ahead.
August 14, 2020

Optum – a hidden gem in US healthcare

It is no secret that healthcare expenditure in the United States is an outlier compared to other similar countries. And, similar to much of the rest of the developed world, demand for healthcare in the US will only accelerate as the baby boomers continue to retire en masse.
August 12, 2020

REA Group shows its resilience in tough times

Property advertising platform, REA Group (ASX:REA), was one of the first businesses to announce its results this reporting season. Given the COVID-related restrictions on real estate transactions, it was a strong performance.  And, pleasingly for investors, the company will be paying a dividend.
August 4, 2020

Uniti Wireless looks set to keep growing

By David Buckland

Since listing on the ASX in January 2019, the share price of broadband provider, Uniti Wireless (ASX:UWL) has enjoyed spectacular growth. From an IPO price of 25 cents, shares have rocketed to $1. 60, with the business growing via consolidation. The upcoming merger with OptiComm Limited (ASX:OPC) will make the business even stronger.
August 3, 2020

Why it’s time to focus on quality businesses

By Roger Montgomery

In 1976, US economist, Herbert Stein, famously stated that “If something cannot go on forever, it will stop. ” His observation could well be applied to the ballooning value of many technology companies, some of which have never made a profit, and possibly never will.


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