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Spinning Off a King
Abacus Property Group (ABP) is a real-estate investment trust (REIT), listed on the ASX. Held within ABP is a bunch of east-coast office buildings, retail centres and, most importantly, Storage King, Australia’s second largest owner-operator of self-storage centres. ABP intends to partially spin-off its Storage King assets in August, pending shareholder approval, into a separate listed entity, called Abacus Storage…
IVE Got Value
IVE Group Ltd (ASX:IGL) IGL is Australia’s largest integrated marketing communications business with leading market positions across every sector in which the company operates. Over the past 20 years, IVE has been able to diversify operations, enabling cross-selling opportunities, which has resulted in more than 75% of customers purchasing products and services from multiple divisions. Their flagship segment, print, has…
Porsche AG's Initial Public Offering
Porsche AG’s initial public offering (IPO) will take place on the 29th of September 2022, as a Frankfurt listing. Volkswagen (ETR:VOW3) will float 12.5% of Porsche, raising around €9 billion for the company, with the sale set to become one of Germany’s largest to date. Volkswagen are pricing the shares between €76.50 and €82.50, indicating the company would be valued…
4 Key Financial Metrics All Investors Need to Know
If you wanted to be a successful talk-show host in Germany, what is the one thing you need to know? How to speak German, of course. Similarly, if you want to be a successful investor, you must have a basic understanding of the language of business... Accounting. Below we discuss four important financial metrics that we believe all investors must…
Scout Security Limited (ASX:SCT)
Business Description Scout Security Limited (ASX: SCT) operates a direct-to-consumer business, as well as a white-label Security-as-a-Service ("SaaS") platform and product suite. White-label partners include security, internet service and telco providers, all of which provide Scout with an opportunity to penetrate established customer bases and distribute its products and services globally. The Company generates revenue primarily through hardware sales and…
Family Zone
As the internet become more prevalent and prolific in our lives and the volume of content on the internet grows, it become increasingly more important to be able to monitor and filter the content available to children. Family Zone provides software for schools to deploy on computers provided by them as well as software for parents to monitor internet activity…
Cyclical stock: Reece
In September, the market experienced a sectoral shift from growth to cyclical as a result of a better-than-expected vaccine development. We started accumulating Reece (ASX:REH) as this is a cyclical stock that is being supported by the government stimulus package. REH will grow even stronger when the US economy recovers. Company Overview REH is a leading supplier of plumbing, bathroom,…
Pacific Smiles – It's all Smiles
Two months ago, we detailed one of our holdings, Pacific Smiles (ASX:PSQ) . Some investors asked, “Why would you invest in a growth company at a PE of 30 in a high inflation and raising rate environment?” In this post, we talk about why we invested in PSQ in the current environment. High patient fee growth PSQ’s patient fee growth…
Healthy aging - Healthia
Healthia (ASX:HLA) has been one of our top holdings for a while. HLA operates an integrated portfolio of allied health businesses, which includes My FootDr, Allsports Physiotherapy, Extend Rehabilitation, iOrthotics and DBS Medical Supplies. The below graphic showcases HLA’s operating businesses: We believe HLA has a good pipeline of growth from rising demand and acquisitions. Healthy response to aging population…
SEQ earnings upgrade
One of our portfolio holdings, Sequoia (ASX: SEQ), appreciated by +15% this week. A profit upgrade announced on Wednesday triggered the share price movement. In this post, we share our opinion towards this company and why we keep topping up our position on the way up. Company overview SEQ is an integrated financial services company providing a wide range of…
Another acquisition from EML Payments
One of our portfolio holdings EML Payments (EML) appreciated by +15% this week. The news which triggered the move was announcement of another major acquisition, this time of fintech company Sentenial. As discussed in our previous blog post , EML processes electronic payments for clients. This week’s Sentenial acquisition expands EML’s offering into Open Banking-enabled account-to-account payments. In this post,…
What we learnt from our Dicker Data site visit
A month ago, we discussed one of our portfolio holdings, Dicker Data Ltd (ASX: DDR) . DDR is primarily an IT hardware distributor, partnering with over 70 of the world’s leading hardware vendors. The Company recently opened its new national distribution facility at Kurnell NSW which we toured last week alongside fellow investors. In this blog, we talk about 2…
Tech company that we comfortably invest in during the rising rate environment
Over the last few months, there has been a large sell-off in long-dated bonds. This has also led to a fall in the prices of growth stocks that have long-dated cashflows. For example, the ASX All Technology Sector Index has fallen by 14% from the record high on 10 February. We have used this tech sell-off as an opportunity to…
Technology play - Dicker Data
In recent years, growth companies, especially those in the technology sector, experienced a tremendous run in the share market. A wide variety of technology themes pop up and they all sound promising. However, not all themes are realised in the near future. When the theme fails to work out, investors suffer great losses. To avoid this big risk but enjoy…
Tesla share price up 60% in August. Here's why
Investors should focus on the company behind the stock and invest in undervalued high-quality businesses. According to the legendary investor Peter Lynch, “This is one of the keys to successful investing: focus on the companies, not on the stocks.” However, a new investing trend is emerging. When companies receive more attention from the general public, it generates “noise”, it’s discussed…
Redbubble – Still benefiting from Covid-19
Redbubble one of our portfolio positions, owns and operates two websites: www.redbubble.com www.teepublic.com The websites link buyers and artists one market place, with over 1 million independent artist in a wide range of categories. We have tested the websites and its actually quite a good way to buy a present for a family member. I bought a few t-shirts as…
There's an awful lot to like about Macmahon Holdings
There's an awful lot to like about Macmahon Holdings. Macmahon Holdings is a mining services contractor, established in 1963 and listed on the ASX twenty years later. Prior to its listing, Macmahon projects were principally in the Northern Territory and Western Australia but a series of acquisitions and expansions now sees them operating in such diverse geographical regions as Africa,…
Real Estate Agencies – The Final Frontier
Most industries in Australia have faced some form of disruption with technology being leaned on to increase efficiency, promote competition against dominant incumbents and introduce new concepts. One group has so far managed to fend off attempts to derail its privileged market position – real estate agents. Technology has in fact played a part in preserving the status quo. The…