Fusing Fundamental and Technical Analysis with lashings of Behavioural Finance. Investing in Australia and North America.
“We document strong persistence in the performance of trades of individual investors. The correlation of the risk-adjusted performance of an individual across sample periods is about 10 percent. Investors classified in the top performance decile in the first half of our sample subsequently outperform those in the bottom decile by about 8 percent per year. Strategies long in firms purchased by previously successful investors and short in firms purchased by previously unsuccessful investors earn abnormal returns of 5 basis points per day. These returns are not confined to small stocks nor to stocks in which the investors are likely to have inside information. Our results suggest that skillful individual investors exploit market inefficiencies to earn abnormal profits, above and beyond any profits available from well-known strategies based upon size, value, or momentum.”
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Minimise your personal debt.
No-one was ever fired for buying an Intuitive Surgical robot.
Excellent results highlight the growth path.
The greatest outperformance can be achieved by buying growth stocks using a value framework.
So you want to be an investing superstar. Or at least retire comfortably with control over your own finances. Here’s a simple starting point for Buffett like returns.
Buy stock in the highest book to market decile, rinse and repeat.
Hold more cash when the market is above long term trend lines, deploy that cash when it is below.
I know there at least a few readers who are business owners, so this great TED presentation by Simon Sinek goes out to them. But hey, even if you’re not a business owner this is a great video to watch and think about. Yes it’s an oldie, but it is a goodie.
Simon Sinek has a simple but powerful model for inspirational leadership all starting with a golden circle and the question “Why?”
M2 announced today higher than expected 2011 forecast.
According to the guidance M2 expects substantial growth since the last financial year.
Revenue is forecast to grow by 12 per cent in 2010-11 to between $425 million and $445 million from the forecast $380 million to $400 million in 2009-10.
Net profit is expected to explode 52 per cent to $22 million and $23.5 million in financial 2011 from the 2009-10 guidance figure of about $15 million.
Earnings per share is forecast to rise 36 per cent to between 18.1 cents and 19.4 cents from …
Headline Group popped 18% yesterday, up 5 cents to 33c on huge volume of 1.4M shares after this big announcement.
The highlights of the announcement were:
Mothercare PLC proposed acquisition of 25% of Headline Group via investment of $12.2M.
“Baby on a Budget” acquisition in W.A. Seven stores, deal multiple of 4x EBITDA .
Headline to acquire 100% ownership of Skansen KCG in returns for shares in HLD.
Current stores operating above expectations.
Roll-out of Mothercare stores to be accelerated.
Headline Group Limited has exclusive rights and is currently launching the world’s leading retail parenting centre into Australia under the international brands of Mothercare and …
Today I attended advanced training for StockVal here in Melbourne. As I was walking to the venue a elderly woman slipped on the wet footpath in front of me and fell heavily to the ground. Being slightly obsessive about being on time, and already being a couple minutes late I was torn as to whether to help or not, as she did have her husband with her. In the end I was glad I did. As is often the case when someone has a fall she tried to get up again. I …
Have you ever been heard how insider sales are meaningless while insiders buying can only mean one thing? The story goes that the only reason insiders buy is they expect the share price to increase while sales can be for a variety of reasons, e.g. a new house, kids college, taxes etc etc. That makes intuitive sense and I’ve often seen that story repeated, especially when an investor in nervous about insider sales.
Well it turns out that the reverse is true.
SNY appears on the following screens:
- Growth/Value Investor Strong Interest. Based on analysis of the book by James P O’Shaughnessy
- Value Investor Strong Interest. Based on analysis of the book by Benjamin Graham
- P/E Growth Investor Strong Interest. Based on analysis of the book by Peter Lynch
On 30 Sept 2009 Southern Cross Equities (SCE) issued a bullish recommendation of Prana with a 12 month target of $1.10, Prana was then at $0.23.
SCE received 3.5M three year $0.30 options for services rendered.
What was the purpose of that ‘research’ report? Was it to secure funding from BAM Capital? Who around that time took a substantial stake of 30M shares and then played some very unusual ‘games’ which a suspicious person may have concluded looked manipulative.
Now SCE get to run a private placement to dilute existing shareholders by 100%. How …
Ceres Power and Ceramic Fuel Cells are the two leading competitors in small scale combined heat and power (CHP) products. Both are targeting the residential market in Europe and have partnerships with German manufacturers and European gas suppliers. Both use technology based on Solid Oxide Fuel Cells (SOFCs) and if you believe their respective marketing both are the leading company in this niche area. So who is the leader and who is the pretender?
The Inefficient Stock Market What Pays Off and Why is an insightful look at market inefficiencies and how investors can profit via expected return factor models.
