18 Share Tips – 9 June 2015
Joshua Stega, JAS Wealth BUY RECOMMENDATIONS IOOF Holdings (IFL) This Australian financial services company recently agreed to sell boutique fund managers Perennial Fixed Interest and Perennial Growth Management to Henderson Group (HGG). We think this exit makes sense as it further focuses IFL on platforms and distribution, a business that is less cyclical than funds…
18 Share Tips – 1 June 2015
Gavin Wendt, MineLife BUY RECOMMENDATIONS Ironbark Zinc (IBG) An emerging world-class zinc play, coinciding with a zinc supply shortage that’s been looming for the best part of a decade. Decades of under investment in the zinc industry have provided a window of opportunity for Ironbark with its Citronen project in Greenland. Orinoco Gold (OGX) Set…
Looking for Value in “Mining Service” Takeover Targets
Shares of self-styled “professional infrastructure and environmental services company” Cardno Limited (CDD) closed the trading day of 19 May 2015 at $3.50 per share. On 20 May company management issued a profit warning. Cardno expects NPAT (net profit after tax) to drop from last year’s $78.1 million to between $48 and $51 million. The stock…
Life in a windowless box: the vertical slums of Melbourne
Ralph Horne, RMIT University and Megan Nethercote, RMIT University Australia’s apartment boom is in full swing. Nationally, 40% of new dwellings are now apartments or units, and building approvals outnumber those for houses. Melbourne and Brisbane are the most extreme cases, but these trends are national; and they are fundamentally reshaping the future of urban…
You are your life, and nothing else
Existentialist philosophers teach us that we alone are responsible for creating a meaningful life in an absurd and unfair world. Standing on a cliff, a sense of disorientation and confusion cloud you. Not only are you afraid of falling, you also fear succumbing to the impulse of throwing yourself off. Nothing is holding you back….
Fortescue’s roster changes signal waning of the cashed-up FIFO era
Margaret Giles, Edith Cowan University Andrew “Twiggy” Forrest’s Fortescue Metals Group will change their rostering system in an effort to drive down their wages bill. It’s a move likely to be seen as good news by shareholders, and made as iron ore prices fall, demand for commodities softens, growth in China slows and as ratings…
18 Share Tips – 13 April 2015
Michael Gable, Fairmont Equities BUY RECOMMENDATIONS Greencross (GXL) This pet care company is consolidating fragmented vet services, pet accessories and food sectors, targeting a market share of 20 per cent. There’s clear upside potential through acquisitions and increasing market share. The chart is telling us that it may dip towards $7, which would be a…
The problems with relying on the bank of mum and dad
Mamiza Haq, The University of Queensland Ask a parent how far they would go to support the financial aspirations of their children, and chances are they will say: “Yes, if I had the money I would be happy to act as a guarantor for my children to purchase a property.” Australian capital city house prices…
18 Share Tips – 7 April 2015
Carey Smith, Alto Capital BUY RECOMMENDATIONS Legend Corporation (LGD) This engineering solutions provider to the electrical, information technology, semiconductor and medical industries produces excess cash from its operations, enabling the company to pay out a large proportion of earnings as dividends. Recently trading on a price/earnings multiple below 8 times and a fully franked dividend…
Bond yields and what they tell us about the economy
When the Australian Office of Financial Management borrowed A$4.25 billion for 20 years at an interest rate of just 2.865% this week, economic commentator Peter Martin called it “the deal of the century”. Governments issue bonds to raise funds to pay for general expenses and projects such as the stgelopment of infrastructure. Investors buy government…
