M2 Telecommunications (MTU) reported outstanding first half 2010 results today. Though not quite as outstanding as the headline on the release trumpets “M2 delivers record earnings – up 156%“. Still Vaughan Bowen and company have got a lot to be pleased by, with earnings per share up 86% and EPS adjusted for non-cash amortisation up 118%. Excellent stuff Vaughan, keep up the fantastic work.
Growth was driven by last years two major acquisition, People Telecom and Commander. Regular reader may recall I generally have concerns with growth by acquisition. In this case I have nothing but praise for …

When is price the same as value?

I have subscribed to dozens of investment newsletters and sites over the years and used to read newspapers. What follows are my opinions based on past experience, the publications mentioned may have changed since I subscribed.

14 Guaranteed Tips for Success at University (Grad School)

When someone with two doctorates, shares guaranteed tips for success in academic life, I’m all ears.

Woolworth’s stock price rolls back. It’s time to take a fresh look at the fresh food people.

Jeremy Cooper, the superannuation reviewer not the brewer, has released A Conversation About SMSFs. This document is as refreshing Cooper’s Pale Ale, Cooper even leads off with a Coopers joke.
I encourage all SMSF trustees to read the document, though in summary Cooper says SMSFs are doing well and despite concentrated asset allocations* are performing as good as if not better than other investment vehicles.
SMSFs might be able to aspire to this [excellent performance] because:

SMSFs can pursue asset allocations that would be difficult to implement in an APRA-regulated fund;
SMSFs can have longer-term investment …

One of the good aspects of blogging and discussion boards is they help overcome revisionist history. Here’s what I was thinking a year ago.
Despite not knowing the answer I clicked four, At/near bottom and things will start gradually improving soon. [77% of respondents had a considerably more pessimistic view...no surprise there!]
When my kids are tired and hungry (in recession) I have a few options besides ignoring them.

I can give them sugar (consumer stimulus package) and the results are almost immediate. Full of energy off they go at full speed. Only to crash again …

Here’s my investometer for the end of January showing actual percent invested in equities.

My only purchase of note was in January was Catch The Wind. I continued to accumulate cash in our SMSF and am busy investigating opportunities. Nothing tickles my fancy at the moment.

BIOTA HOLDINGS LIMITED (BTA) are due to report first half results within the next week or two. There has been considerable coverage on the indicative $32.6M quarterly royalty on the $462 million in Relenza sales by GSK. David Symons wrote an excellent preview of the quarterly royalties which is worth a read. It’s good to see some journalists now have an in-depth understanding of Biota.

With earnings due and $56.7 million in anticipated royalties I decided now was a good time to look back at Biota’s revenue over the last five years.

JB Hi-Fi Limited (JBH) announced 29% growth in profits, yet the stock has been taken out to the woodshed and had 5% flayed off its hide.
Why were investors so disappointed in this Roger Montgomery favourite? Sales increased 23%, profit was up 29% and the dividend was raised a whopping 120%, hardly disapointing figures.
Do investors believe the outgoing CEO, Richard Uechtritz, was worth 5% around $100M of the market cap? The stock fell 5% today after the earnings announcement.
Or was it the falling gross margins? Gross margins fell 26bps due to increased competition and lower margin items.
Or …