Blue Chips & Stocks To Watch!

Woolworths counts the cost of Masters blunder, with food business under fire

Woolworths’ long-suffering shareholders may well be asking the newly appointed CEO, insider Brad Banducci, if today marks the nadir of the company’s woes. The answer, sadly, is probably not. The Masters disaster has been well documented and today Woolworths has tried to quantify the cost of this massive blunder at A$3.25 billion. The real problem,…

More staff cuts likely as Fairfax eyes digital only

By Merja Myllylahti, Auckland University of Technology There seems to be no end to Fairfax’s restructuring saga. On Friday, the company’s management signalled they would continue to cut costs no matter what. CEO Greg Hywood said: “We have made clear many times that we are managing a structural shift in publishing from print to digital….

Media Stocks to Benefit from Regulatory Changes

Right now it appears virtually certain the archaic “Reach Rule” is about to fade into business history. The Reach Rule is meant to limit control of commercial broadcasting licenses issued to a single entity to no more than 75% of the population of Australia.  With heavy presence in metropolitan areas, the Reach Rule severely restricts…

5 Stocks to Benefit from the Energy Storage Boom

Less than a decade ago EV’s (Electric Vehicles) had virtually disappeared from the global automotive landscape.  The prospects of solar and wind powered electricity generation inspired numerous cost benefit analyses that cast a dim view on the future of those technologies. In 2012 US based Tesla motors introduced a high end all electric roadster, which…

3 ways to benefit from backdoor listings boom

The backdoor listings market on ASX is equal parts fascinating and frustrating. Fascinating because some promising technology companies are listing through the shell of failed miners. Frustrating because there is less information about upcoming listings. A backdoor listing typically involves a dormant listed company acquiring the shares or assets of an unlisted company, after shareholder…

Aussie tech education stock looks undervalued

Investors could be forgiven for running a mile from listed education stocks. Vocation has been a disaster and Ashley Services Group has disappointed. But education software provider 3P Learning looks more attractive after recent price falls. To recap, about five million children, through 17,000 schools in more than 200 countries, use its products. More students…

How to profit from a market bounce

Many commentators have suggested stocks to buy during this sharemarket correction. Another strategy for active investors is buying the market in anticipation of a recovery in the fourth quarter. Exchange-traded funds (ETFs) are ideal in this regard. They seek to replicate the price and yield performance of an underlying index, and are bought and sold…

Time to put the AREIT sector back on the portfolio watchlist

This column had a bullish view on Australian Real Estate Investment Trusts (AREITs) last year. The sector dutifully soared as yield-focused investors flocked to them and several specialist property companies were launched through sharemarket floats. However, in February 2015, this column downgraded its view on AREITs such as Shopping Centres Australasia, BWP Trust, Charter Hall…

Woolworths forced to eat a slice of humble pie

John Rice, University of New England and Nigel Martin, Australian National University Australian retail giant Woolworths was not so long ago the unchallenged champion of the Australian retail sector. Gifted with a dominant position in one of the most concentrated grocery retail markets in the world, its profits and margins were among the best anywhere….

Fuel hedging and its impact on airlines and airfares

By Rico Merkert, University of Sydney With oil prices on the decline, and analysts predicting record profits for the 2014/15 financial year, Qantas and Virgin Australia are under increasing pressure to abolish fuel surcharges and lower their fares. The Australian Competition & Consumer Commission is investigating whether Qantas has been misleading with its surcharges, amid…