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Month: April 2011

Globe International – Value trap? (GLB)

Posted on April 30, 2011 by Leon

  Market Cap: $19m P/E: 8.6 P/Book: 0.37 Dividend Yield: 10.9%   Well-known surf and skatewear brand Globe also happen to be listed on the ASX, and fulfill many of the common metrics value investors look for.  Selling for a mere 1/3 of book value with no debt and a whopping $12.5m cash on hand,…

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BigAir increased earnings guidance for FY11 (BGL)

Posted on April 29, 2011 by Leon

Today after the market close, BGL announced a significant increase to EBITDA guidance for FY2011 up 30%, from $4m to $5.2m.  Much of this uplift results from the contribution of the CVA and AccessPlus acquisitions. Because BGL’s revenues are largely from subscription services, the current annual EBITDA run rate is $7.5m, which should grow well above…

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iiNet vs TPG Telecom (IIN, TPM)

Posted on April 25, 2011 by Leon

In the hotly contested consumer broadband market, the 2 key players are iiNet and TPG Telecom. Despite TPG’s Pipe Networks business, both are pretty pure consumer internet plays which should make comparison fairly straightforward.  Apart from the 2 integrated giants Telstra and Optus, TPG and iiNet are the biggest broadband operators in Australia, and unlike…

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Regional Express (REX)

Posted on April 20, 2011 by Leon

My biggest blunder of the year has definitely been Regional Express (REX). The initial attraction for investing was the relatively high net profit margin of REX compared to other airlines like QAN and VBA. Running with a load factor (how full their planes are) in the 60% range and still being reasonably profitable made Regional…

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Supply Network profit upgrade (SNL)

Posted on April 20, 2011 by Leon

Easter has come early with Supply Network who are now forecasting a year-end EBIT upgrade of 15%, from the 3.1M-3.3M range up to the 3.5m-3.8m range. Another important factor of note is that this EBIT improvement is a result of revenue growth rather than improved profitability. If the company transformation successfully reduces overheads this should…

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HGL Limited (HNG)

Posted on April 8, 2011 by Leon

Market cap: $70m P/E: 4.86 P/Book: 0.94 Dividend Yield: 8.6% Something like a mini-Berkshire (without the insurance “float” to source new capital), HGL is a conglomerate of diversified import businesses serving niche markets such as model cars, school hats, and special format printing. HGL make no effort to integrate their acquisitions, choosing to let senior…

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