Archive: February, 2023

February 27, 2023

For travel stocks, it’s up, up and away

By Roger Montgomery

If you’ve travelled lately and felt stung by the big increases in airfares and accommodation prices, you might think about ‘revenge investing’ in some travel companies. Because, since the post-pandemic re-opening, many – like Flight Centre and Qantas – have seen a big increase in patronage, profits and share price.
February 24, 2023

Why we hold a material position in Seven Group

By Michael Gollagher

Seven Group Holdings (ASX:SVW) is a diversified company with businesses and investments in industrial services, media and energy. We particularly like the company’s exposure to mining services and infrastructure investment – via WesTrac, Coates Hire and Boral – and its high quality management. Together, these factors should continue to drive earnings and share price performance over the long term.
February 23, 2023

Gary’s best and worst pick from reporting season so far

By Scott Phillips

  In this video Scott speaks with Gary Rollo, portfolio manager of the Montgomery Small Companies Fund on an update on small caps reporting this results season. There’s been more beats from an earnings point of view than misses, but that’s looking backwards.
February 21, 2023

Adairs sheets home the blame for its poor HY23 result

By Roger Montgomery

If you needed more convincing that Australia’s retailers are doing it tough, take a look at the HY23 result from manchester and homewares retailer Adairs (ASX:ADH).   ‘Weak’, ‘disappointing’, ‘a miss’.   That’s how various commentators described the result.
February 21, 2023

The silver lining in higher rates

By Roger Montgomery

Financial media is replete with stories observing the fastest increase in interest rates in recent memory, the end of the declining interest rate era, how the fastest rise in short-term rates is inverting the yield curve (2-year bond yields higher than 10-year bonds) and predicting a recession, rising rates are causing the property market to collapse, and how causal inflation…
February 20, 2023

Why I don’t think this is a dead cat bounce

By Roger Montgomery

With equity markets steaming ahead, there’s no shortage of people calling this a ‘dead cat bounce’ and, by implication, predicting another market correction. History, however, suggests that 2022 was simply an isolated poor year for markets, and that we have now returned to ‘normal programming’. If I’m right, then 2023 could be a good year for investors.
February 17, 2023

What is next for small caps?

By Polen Capital

The past year posed considerable challenges for equity investors, including runaway inflation, a rising interest rate environment, geopolitical tensions, and the lingering effects of the pandemic. The confluence of these headwinds – and a lack of positive catalysts – roiled market sentiment, resulting in most equity analysts adjusting their expectations for corporate earnings growth substantially lower.
February 17, 2023

Distracted by sentiment? You’ve missed 16 per cent!

By Roger Montgomery

Over the last six months, we have provided a growing list of arguments favouring investment in equities. We have shown the compression of P/E ratios of 2022 rendered high-quality companies cheap, and we’ve revealed arithmetic demonstrating investors will receive a return commensurate with the earnings growth rate of the company they buy even if stocks don’t become popular again.
February 16, 2023

Is Breville good value after its recent results?

By Roger Montgomery

Breville (ASX:BRG) the kitchen appliance company this week reported another record for half-yearly sales, albeit slightly below consensus. First half 2023 revenue grew 1. 1 per cent to A$888. 0 million, which was also 0. 7 per cent higher, on a constant currency basis, than the first half of FY22.
February 15, 2023

What are we seeing from reporting season in small caps so far?

By Scott Phillips

  In this video Scott speaks with Gary Rollo, portfolio manager of the Montgomery Small Companies Fund to provide an update on what we have seen from reporting season so far. It is early in the number of companies who have reported, but we can already see some key themes coming from the consumer sector.
February 14, 2023

Three reasons for liking Transurban

By Sean Sequeira

Since starting life in 1996 as the operator of Melbourne’s CityLink, Transurban (ASX:TCL) has come a long way. Taking advantage of falling interest rates, TCL has expanded its portfolio and now operates lucrative urban toll roads in Sydney, Melbourne, Brisbane, Canada and the U. S.


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