Fundamental Analysis

3 non-bank financials to watch

Considering what has happened to financial markets since the Great Financial Crisis, it is no wonder many investors hang up the phone when their advisors begin talking about possible value plays in the investment and financial services group. With a constant barrage of worry over Tier 1 capital ratios, Basel II ratios, sovereign debt exposure,…

Is a falling copper price the canary in the coalmine?

As a resource driven economy, Australians are justifiably concerned when commodities of all stripes take a dramatic turn southward.  While the price of iron ore is of greatest concern here, experts have long maintained that the base metals – copper, zinc, and aluminum – play the role of canary in the coal mine.  Of these,…

Cheap stocks now to time the recovery

Every downturn provides opportunities for the value investor.  Stocks that are solid performers get sold along with everything else and tainted by association if they are in an unpopular sector. The basis of value investing is to find good companies that have been underrated or overlooked by the market.  But identifying value can be tricky. …

A recession-proof stock

By Guy Carson, Clime Asset Management Beginning with the takeover of Foodland in 2005, Metcash Limited (ASX:MTS) has continued to establish itself as the significant third player in the Australian grocery market with 19% market share (See Figure 1). Its 2009 results released last month further emphasised its significant position within the market and reaffirmed…

Shareholders face cuts to dividends

Analysts say shareholders in Australian listed companies could suffer a 28 per cent cut in dividends from a likely 17 per cent slump in earnings for 2009. But 2010 could deliver better returns than the market has priced in, peppered with a raft of takeovers as stronger companies are pressured into working lazy balance sheets…

A simple method for finding dirt-cheap stocks

We often want to buy a stock on the cheap – and to do this we need to find how much the company’s shares should be worth. But how do you know if the current share price is too high or too low? There are many valuation methods around that attempt to calculate the ‘true’…

Important facts to get right when choosing a stock

A little logic goes a long way in successful stock picking. It’s easy to get caught up in indicators and share prices and to overlook the most important facts to get right when buying any company. Purchasing a share involves taking part-ownership in a business. Think of it like buying a stake in the local…

Stock in focus – Coca-Cola Amatil

Company: Coca-Cola Amatil Limited ASX Code: CCLCurrent Share Price: $8.371 Year High/Low: $9.79/$6.65 Coca-Cola Amatil Limited (CCL) Operations Coca-Cola Amatil (CCL) is the Asian region bottler for the Coca Cola Company. CCL manufactures, sells and distributes Coca-Cola products throughout the Asia-Pacific region. The company’s portfolio of products includes carbonated soft drinks, mineral waters, other non-alcoholic…

PEG ratio gaining in popularity against the P/E, but beware of its flaws

A common method used to establish the best value for money when comparing shares in different companies is to look at their respective price earnings ratios. This ratio is defined as the current market value of a share in cents divided by its earnings per share for a year in cents. Other things being equal,…

Paid off in dividends

The term “dividend” refers to the amount paid out of a company’s profits to its shareholders. In Australia it is common practice to pay both an interim and a final dividend. Earnings not distributed in the form of dividends are retained in the business and help it to grow. They still belong to the shareholders…