Archive: February, 2021

February 26, 2021

Scentre Group’s activity returns to pre-pandemic levels

By Roger Montgomery

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.
February 23, 2021

Will Reliance Worldwide benefit from the US freeze?

By Roger Montgomery

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.
February 22, 2021

Codan exceeds expectations yet again

By Roger Montgomery

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.
February 16, 2021

Three positives from the Commonwealth Bank result

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.
February 12, 2021

Own the bank not a bank deposit

By Roger Montgomery

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.
February 10, 2021

Is there strong growth ahead for Emerging Markets?

By David Buckland

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.
February 10, 2021

Cashrewards – the next category killer

By Gary Rollo

  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.
February 9, 2021

Why I don’t think we’re headed for a correction

By Roger Montgomery

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?  There’s no doubt pockets of exuberance exist.
February 5, 2021

Bingo catches a bid. Who could be next?

By Dominic Rose

Bingo Industries (ASX:BIN) confirmed in late January that it has received an unsolicited, indicative takeover proposal from a consortium led by private equity firm, CPE Capital (formerly known as CHAMP Private Equity), and including a Macquarie Infrastructure Fund (Macquarie Infrastructure & Real Assets, MIRA). The cash offer price of $3.
February 5, 2021

What to make of the Gamestop short squeeze?

The developments in recent weeks in relation to trading in Gamestop, a US-listed mall-based retailer of video games, have been fascinating for a whole host of reasons.   Not the least of these has been how poorly-understood the whole episode has been.


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