Archives: Questions And Answers
Hi Gents,
Please explain what is happening with CTD and also some thoughts on whether QBE represents a buying opportunity at these prices. Thanks
What you guys recommend as the best way to play defence, but specifically the increase in defence spending by European governments. Is there a specific company that is likely to see an increase in its contract wins and revenue as a result of government spending in defence or an ETF, with a slant towards European contract wins? Cheers, Josh
I was hoping to get your thoughts on AUB and RIC. AUB following their recent pullback after a takeover fell through, and RIC following their purchase of Incitec’s fertiliser business. I’m hoping one or both could provide reasonable returns over a 1-2 year period.
I wanted to get your view on WiseTech’s numbers. I listened to a podcast that criticised its accounting, arguing that its artificially boosting EBITDA by treating wages for its software developers as a depreciable asset (ie capitalising R&D) – and then because of that the free cash flow is inflated and margin improvements are really down to a bit of accounting magic. Do you have a view on this and whether its something to worry about? A bit technical I know, but would love your view on this issue as I don’t think you’ve discussed this in your analysis. Thanks, Josh
Hi Guys,
I would value your opinion about the QRE ETF. Is is a good way to gain exposure to the resources sector?
I have always stayed with the ASX market, but due to so much commentary these days on the US market I am wondering if I need to change focus in the future. It is no wonder the ASX is underperforming the US with so much of our money leaving Australian stocks and Australia. Also there are more ETF’s in US than stocks which are also being heavily promoted. I find I am adding to positions in the ASX instead of finding new opportunities as they seem to be limited.
Hi, Merry Christmas, thanks for the ongoing work throughout the year and good luck with the new venture.
Another one for your view on American natural gas. Henry hub futures and spot prices
The price has gone vertical over the last two months, sitting at multi year highs. Can you give your views and opinions please, as I must be missing some detail.
I understand the concept of demand through northern hemisphere winter, along with higher US exports due to Europe coming away from Russian gas and need for more energy and coal phase out, however, from what I can see, supply is higher than ever, inline with demand, storage inventory is above 5 year average, the energy requirements and coal phase out is well known and future prices trending lower across later contracts.
I’m actually in a short and sweating on the position I hold on the spot cash price as I’m looking at the massive clear space above $5 if it breaks above; which is looking like a strong possibility even before the weekend. This is one of my worst read trades and have clearly missed something in my analysis.
Thanks, Simon
Hi guys,
I noticed PMV drop 13% Friday even as they announced a buyback. Can you give your thoughts on the reasoning and whether it represents an opportunity? Much appreciated.
