AV Jennings is an Australian institution, having been in the housing business for over 80 years, back when you bought a new house when you got married, and stayed there until one of you died. Nowadays they are in the business of affordable family homes, mainly on the suburban fringes, as the inside of the Goats…
Author: Leon
December 2015 Update
Although I haven’t posted since March, there has been a fair amount of activity since last writing: Sold REF, as I no longer believe Cigar Butts are a good investment strategy to find value Added to BGL at 77c Added to BPF during the recent capital raising at 25c Exited some loss-making positions in…
BigAir HY15 results (BGL)
On the 19th of February, BigAir released their half year results for FY15. Let’s check it out: Revenue $26.2M up 55% EBITDA $8.5M up 28% NPAT $3.5M up 22% At current price of 0.795, BGL is selling for 20 times earnings. At these rates of growth, that’s a pretty good deal. Microequities have…
Bulletproof Networks: HY15 results (BPF)
BPF released their HY15 results this week, showing the following results on PCP: Revenue $11.9M (up 46%) Underlying EBITDA $1.2M (up 20%) NPAT $808k (HY14 $95.7k loss) Underlying NPAT $567k loss (Due to performance share revaluations) So the business is now making money, having doubled staff in 12 months, and are growing revenues…
Berkshire Hathaway’s 2014 Letter
Every year when it comes out, I read Warren Buffett’s annual letter to shareholders. I’ve come to know the key businesses within Berkshire Hathaway, and it inspires me to think long-term as Buffett reflects on the performance of his own investment decisions over many decades. The letter reflecting on 2014 celebrates 50 years of management,…
Reverse Corp HY15 earnings (REF)
Reverse Corp provided an earnings update for HY15 this week, and confirmed things were still moving in the right direction: Revenue $4.51M (up 4%) EBITDA $1.84M (up 16%) NPAT $1.05M (up 56%) So revenue nearly flat, with increased profitability thanks to more efficient operations at 1800 Reverse. OzContacts is now breakeven, so we can anticipate…
More thoughts on Greece
Now that Syriza have had the chance to get their feet under the desk, it is inevitable that Greece, and possibly the whole Eurozone, will face an unmitigated economic disaster. Here’s why: Tax collection is down 40% in January, in a country where the head of the tax department faces death threats for chasing unpaid taxes…
Colorpak HY15 results: Disappointing (CKL)
When I originally wrote about Colorpak, I saw it as a better investment than Amcor for several reasons. Now, looking at charts for both companies, Amcor as of today would have been a better investment. The share price fell 22% on Friday, the lowest it’s been since July 2012. So let’s review the numbers against…
Joel Greenblatt on value investing
One of the best quotes I’ve read on value investing, which is applicable across an infinite number of domains, is the below from Joel Greenblatt: “Prices fluctuate more than values—so therein lies opportunity. Why do the prices fluctuate so widely when values can’t possibly? I will tell you the answer I have come up…
The Greek election could be a major inflection point for Europe’s future
Because I’ve been predicting GFC 2.0 for the past 2 years, I have limited myself from investing in public markets for this period, except for a couple of stocks like BGL and CKL, as well as a position in several gold shares as a defensive play which sit outside the value methodologies (so I haven’t written…