A housing affordability crisis in regional Australia? Yes, and here’s why
The newly released annual Demographia report on housing affordability has found – once again – that Australia has some of the least affordable housing markets in the world. Sydney was ranked as the second-least-affordable housing market behind Hong Kong. This news came just a day after incoming NSW Premier Gladys Berejiklian announced that improving housing…
Why look for value rather than growth in China?
The general perception surrounding China is that it is an ideal market to search for growth. The reality is that China is a very unique and policy-driven economy. The extent of policy and government regulation make it a complex market to navigate, and the regulatory framework evolves at a fast pace. China is also a…
Three childcare stocks to watch
A new childcare centre near my house has apparently been swamped by demand. Getting quality child-minding, at an affordable price, is becoming an even bigger issue – and positive trend for companies that provide such services or those who own the properties. Business forecaster IBISWorld says the Australian childcare services industry grew a staggering annualised…
Bling’s the thing as trinkets charm consumers
Someone forgot to tell the long line of people queuing to buy Pandora jewellery that Australia’s economy is sluggish and that consumers are doing it a little tough.Shoppers could not get enough of Pandora’s mid-priced charm bracelets and trinkets. Business was almost as brisk at a nearby Michael Hill International jewellery store, and “fast fashion”…
Behavioural finance: Money illusion
Money illusion describes the tendency of people to think about money in nominal rather than in real or inflation-adjusted terms. In other words, it’s when people focus on the absolute amount of money rather than what that money can buy. The concept of money illusion was first discussed by Irving Fisher and later popularised by…
How to take some risk out of your portfolio
Diversification is the key to reducing risk in a portfolio. Holding stocks across business sectors allows the superior performance of stocks in “hot” sectors to counter balance poorer performance in stocks not doing as well. Sounds good enough but some studies indicate it takes a portfolio of 25-30 stocks to achieve a maximum level of…
Company directors can be held legally liable for ignoring the risks from climate change
Company directors who don’t properly consider climate related risks could be liable for breaching their duty of due care and diligence, a new legal opinion has found. Although the alarm for business leaders has been sounding for some time, the release of the opinion by senior barristers and leading solicitors confirms the potential liability for…
Bellamys, Blackmores, a2Milk – Time to Buy, Hold, or Walk Away
A little more than a decade ago a Tasmanian family started a company catering to the needs of babies, infants, and toddlers with organic infant formula and food products. The company, Bellamy’s Australia (BAL) went public on the ASX on 4 August of 2013 with an issue price of $1.00 per share. The stock opened…
3 mid-cap and small-cap takeover targets
Recent deals suggest more M&A is on the way – but focus on company quality first.A recurring frustration this year has been a lack of corporate risk taking and deal doing. Boards, it seems, have been happier for companies to give more earnings back to shareholders as dividends or launch share buybacks. Could that be…
Sports-related companies to watch
Let me say upfront: writing about shares is a little tougher this week. There’s too much sport ahead. Mouth-watering football grand finals, the Spring Racing Carnival, then test cricket and the booming Big Bash T20 cricket. What’s a sports tragic to do? Daydreaming about the NRL and AFL finals this weekend and why my teams…