Archive: September, 2020

September 29, 2020

What was the point of the Banking Royal Commission?

Just last week, the Federal Government decided to loosen lending requirements for Australian banks – a move that’s completely at odds with the recommendations of the Commissioner, Kenneth Haynes.   Sure, investors seemed to like the decision, pushing bank stocks higher.
September 28, 2020

One company to benefit from a vaccine and reopening

By Roger Montgomery

  In this week’s video insight Roger discusses how to position for the possibility of a vaccine and reopening. When the global economy reopens further, there will likely be many more sectors returning to growth. We are looking for companies that are winners in sectors that have had their outlooks impacted.
September 28, 2020

The growth v value conundrum

By David Buckland

Since the market bottom of the Global Financial Crisis in March 2009, the Russell 1000 Growth Index (R1G) has outperformed the Russell 1000 Value Index (R1V) by over 300 per cent cumulatively.
September 24, 2020

Lockdown, reopen, lockdown, reopen, repeat

By Roger Montgomery

Globally, investors have hitherto been blissfully optimistic about the end of hard lockdowns, the development of a potential vaccine and broad economic re-openings. But all that may be about to change. The share price of cruise line operators such as Carnival Cruises is perhaps one of the better indicators of how realistic such optimistic sentiment is. Figure 1.
September 24, 2020

Winning in the age of enterprise digital transformation part II

Digital transformation is accelerating due to COVID-19, presenting investors with compelling investment opportunities. In part two of our whitepaper series, we discuss why the very best businesses are often undervalued by public equity markets and what this means for investors. For example, in 2006, Salesforce was trading at 104 times earnings, which many thought was far too expensive.
September 23, 2020

How long will the shift in retail spending continue?

One of the thematics from the last few months has been the material change in retail spending. With COVID-19 related lockdowns and restrictions on population movement and activity, the ability to spend on services such as out of home entertainment and activities has been significantly curtailed.
September 16, 2020

Macquarie offers three reasons to be optimistic

By Roger Montgomery

With so many economies and businesses on their knees, numerous market commentators are pessimistic about the near-term future of global share markets.   But Macquarie Bank’s Chief Economist and Global Head of Macro Strategy, Ric Deverell, is not one of them. He’s just released a chart pack that offers three reasons to be optimistic.
September 9, 2020

How much upside is left for NXT?

By Gary Rollo

When we started the Montgomery Small Companies Fund 12 months ago, data centre operator NEXTDC (ASX:NXT) was one of the first businesses we bought.  On our analysis, the shares were cheap.   One year on and the share price has almost doubled.
September 3, 2020

ServiceNow: mission-critical, with no competition

The digital transformation of the enterprise is a long-term trend which is now accelerating as a direct consequence of the COVID-19 pandemic. Privileged business models operating with the benefit of this structural tailwind, therefore, should be considered carefully for an investment opportunity.
September 3, 2020

Why we continue to like Reece Limited

The share price of Reece (ASX:REH) – Australia’s biggest supplier of plumbing and bathroom products – has outperformed the broader market for many years. Encouragingly, the company recently reported healthy trading during the COVID-19 period. With renovation activity forecast to rise over the next 12 months, I think this is definitely a business that investors should be watching.
September 2, 2020

Redbubble – A COVID-19 winner with global ambitions

With more than six months of COVID-19 disruptions behind us, there have been some clear winners emerging as a result of changes in spending patterns and the shift to online. One such business has been Redbubble – a growing online marketplace providing print-on-demand products based on user-submitted artwork.


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