Category Archives: Articles

Where to invest? Australian or Overseas share markets?

Two roads have diverged
I have been observing a growing divergence in the answer to this question of recent times.

In Australia, it seems we have an increasing trend here of recommendations to invest abroad from financial advisers.  And, it appears that a fad has emerged amongst Australian based fund managers to open an international fund as an addition to their local offering.

However, on the other hand, we have international investors looking at Australia and beginning to snap up our assets.  From my recent memory:

  1. Graincorp was almost taken over by Archer Daniels Midland (an American firm) before our government intervened late last year
  2. David Jones has been acquired by Woolworths SA (a South African firm)
  3. Country Road has been acquired by Woolworths SA (the same South African firm)
  4. Wotif has been acquired this week by Expedia (an American firm)


So, is now a good time to invest overseas?

This chart sourced from the Reserve Bank of Australia (chart pack) might give some clues.

Aust and World Share Prices Where to invest?  Australian or Overseas share markets?

And, what this chart does not show is that in Europe, the German market (DAX) is at all time highs and the UK market (FTSE) is knocking on the door of 20 year highs.

Are these international investors and organisations buying our assets telling us something?
What is better value right now?

  • US and European markets at all time highs due to monetary policy (money printing);  or
  • The Australian market that is nowhere near all time highs, has not had a recession in 22 years and has not required any money printing by our central bank.

Could it be that collectively we Aussies do not fully appreciate all that we have at this point in time?

This article is published by Dean Mico.


The information provided in this article is intended for general use only. The article is intended to provide educational information only. Please be aware that investing involves the risk of capital loss. The information presented does not take into account the investment objectives, financial situation and advisory needs of any particular person, nor does the information provided constitute investment advice. Under no circumstances should investments be based solely on the information herein.

VMT – Vmoto Limited

Vmoto logo VMT   Vmoto LimitedVmoto Limited (ASX:VMT and London Stock Exchange:VMT) is a leading global scooter manufacturer and distribution group specialising in electric powered two wheel vehicles.  Vmoto’s electric scooters have chic European design and German engineering.

Vmoto wholly owned its state of the art manufacturing facility in Nanjing, China, which has an estimated production capacity of 500,000 units of scooters per annum.  Vmoto also have offices in West Perth, Australia and Bremen, Germany.

Vmoto has one of the widest global distribution networks of any electric scooter manufacturer in the world, being represented by more than 28 distributors in 30 countries in the geographic regions of Asia Pacific, Europe, North America, South America and South Africa.

The group operates two primary brands: Vmoto and E-Max.  The electric scooter market is experiencing high growth and Vmoto is a well positioned brand in this space.  The company also supply to a number of customers on an OEM basis.

What is there to like about Vmoto’s business?

  1.  Vmoto is a growing brand selling electric scooters to about 30 countries worldwide.
  2.  The company owns outright their own 30,000 sqm production facility outside of Shanghai in Nanjing, China.
  3.  The production facility has the capacity to produce up to 500,000 electric scooters per annum.
  4.  Current production is less than a quarter of capacity so they have plenty of room to grow.
  5.  Vmoto turned cash flow positive in the December 2013 quarter.
  6.  And reported a maiden Net Profit after Tax for the 2013 Financial Year which ended December 2013.
  7.  The 1st quarter of 2014 was also cash flow positive and the beginning of the year is historically their slowest time of year. So profit and cash flow for the year should increase quarter-on- quarter throughout the year.
  8.  The company has minimal and manageable net debt of about $1 million as of April 2014.
  9.  And, electric scooters are a very environmentally friendly mode of transport.


What are the reasons for continued business growth?

  1.   Vmoto have distribution agreements in place with companies such as Chrysler and another company called PowerEagle to supply up to 150,000 units by 2015.
  2.  They now have 16 retail stores in China open with plans to open more.  The retail stores are where their profit comes from.  This draws comparisons with a company such as ARB (selling their own four wheel drive parts with a very successful retail model).
  3.  Vmoto supply to the main markets for scooters being China, India, Indonesia and Brazil. China is by far the biggest market though.
  4.  In a lot of Asia, people cannot afford to buy a car but they can afford to buy an electric scooter.  Plus scooters are a large form of transport for many people across Asia and developing countries in any case.
  5.  The company announced yesterday 2nd July that DHL (the leading courier company) is trialing the use of Vmoto’s scooters.  Supplying to a worldwide company such as DHL would open up a new and large market for the company.

What are the risks facing this business?

  1.  A more recent risk is a bit of instability within the board. The company is presently searching for an Australian based director.  However, the business has its current momentum from the work done on building the business over the past number of years.  The need to fill a director role is not going to have a significant impact on the trajectory the business.
  2. Another risk I see is that the company falls into the trap of taking on too many distributorships which are good for turnover although may not be good for long term profitability.  Long term, I think they will be much better off focusing on developing their brand and selling via their own retail stores.   Wih the company growing from eight retail stores to 16 retail stores in the past year, I think management know that the best outcome for the business is to continue to develop the profitable retail brand and business model.
  3. The third risk is that current shareholders are diluted with a capital raising at some point.  Despite the company now producing positive cash flow, for a business growing this fast, the difficulty is managing cash flow appropriately.  I am sure however if a capital raise does occur, it may lead to a temporary setback in the share price for the long term good of the business and long term share price.  In saying that, I will be delighted if there is no need to raise capital.

Is it run by able and trustworthy management?
When researching this business, I watched a video by one of the directors Mr Olly Cairns.  I was suitably impressed with the way Mr Cairns articulated the work done by the company over the past few years with the development of the manufacturing facility and the current activities being rolled out to grow the business.

Is it trading at a bargain price?
Based on cash flow reported by the company and the momentum of that cash flow and profitability I believe the company is trading at a bargain price.  I estimate the company will generate NPAT of between $1 Million and $2 Million in 2014.  Based on the lower $1 Million figure, I estimate the company to be valued at 6 cents a share in 2014 (December is year end).

And, based on my own estimates of profitability growth, I think the intrinsic value of the business can rise significantly over FY15 and FY16.  However, being my own estimates, while my numbers are conservative, they are “not as dialed” as I would like.

Company Code Rank Today’s Share Price Margin of Safety 2014 Forecast Valuation 2015 Forecast Valuation 2016 Forecast Valuation
Vmoto Limited VMT Gold 5 4.8 cents 20% 6 cents 10.4 cents 21 cents

The Chart
Vmoto has pumped the air in the tyres of its scooters.  It has been in an uptrend for the past year or so.
VMOTO LIMITED VMT   Vmoto Limited
click to enlarge

Summary
In summary, Vmoto is a great business with an excellent product. Vmoto has a significant pipeline of work from other manufacturers such as Chrysler, a good international distribution network, growing number of retail stores and some exciting opportunities for the future.  By my calculations, the company is trading at a good discount to my estimate of intrinsic value with my estimates of that value growing over the foreseeable future.

This article is published by Dean Mico.

Disclosure: The Edge Fund owns shares in Vmoto Limited.

The information provided in this article is intended for general use only. The article is intended to provide educational information only. Please be aware that investing involves the risk of capital loss. The information presented does not take into account the investment objectives, financial situation and advisory needs of any particular person, nor does the information provided constitute investment advice. Under no circumstances should investments be based solely on the information herein.

CRZ – Carsales.com Limited

Carsales.com .au image 300x300 CRZ   Carsales.com LimitedCarsales.com Limited (ASX:CRZ) is the largest online automotive, motorcycle and marine classifieds business in Australia.  Carsales employs about 370 people across Australia.

Does this business have a sustainable competitive advantage?
Carsales attracts more Australians interested in buying or selling cars, motorcycles, trucks and boats than any other classified group of websites.  This competitive advantage is known as the network effect in which more advertisers (sellers) leads to more buyers which creates a positive loop leading to even more advertisers.

Carsales appears to be continuously working to widen their business moat by designing new products to assist consumers find good deals for cars and also enhancements that make it easier to list your vehicle or boat for sale.

Carsales have used their dominant position in Australia and the subsequent cash flow generated to make investments in the No. 1 car advertising sites in Brazil, South East Asia and South Korea.  This trend of increasing investment (ownership) in overseas sites and expanding into new geographical locations looks set to continue.

What are the risks facing this business?
Carsales has become the market leader by disrupting the print classifieds industry and designing the leading online automotive classifieds business.  The risk is that it becomes complacent and allows lesser competitors to erode their market share.

However, with Carsales looking to continually enhance their offering to both buyers and sellers, it is hard to envisage that competitors will make large inroads any time soon.

Is it run by able and trustworthy management?
Management has executed a clear strategy to build the best online automotive site in the country.  This has created a business that requires no capital expenditure and continually increases its earnings.  And, the management appear to have made very sensible decisions with their overseas investments to date.

Carsales has generated a return on equity above 60% per annum for the past three years and looks likely to post similar profitability levels in the next couple of years. And, the business is run with significant levels of cash on hand.

In fact, on a combined measurement of return on equity and net cash on hand, my metrics have rated Carsales as the fundamentally strongest business in the country for the past three years in a row.

Is it trading at a bargain price?
Carsales is not cheap from an intrinsic value point-of-view and hasn’t been for years.  However, one cannot reasonably expect to wait for a business as fundamentally sound as this to trade below its valuation.

By my calculations, the business is expected to increase its intrinsic value in FY15 by 15% and increase the value of the business by 9% in FY16 given current forecasts.

The Chart
Carsales appears in the middle of a triangle formation which is pretty much in the middle of an uptrend channel.   Price action over the next few days and weeks will be interesting.
CARSALES.COM LIMITED1 CRZ   Carsales.com Limited
click to enlarge

Summary
In summary, Carsales is a superb business with a sustainable competitive advantage.   It has excellent management who built this business to where it is today.  And, it has the capacity to increase investment in its overseas contemporaries.

This article is published by Dean Mico.

Disclosure: The Edge Fund owns shares in Carsales.com Limited.

The information provided in this article is intended for general use only. The article is intended to provide educational information only. Please be aware that investing involves the risk of capital loss. The information presented does not take into account the investment objectives, financial situation and advisory needs of any particular person, nor does the information provided constitute investment advice. Under no circumstances should investments be based solely on the information herein.

Value investing is another term for Quality Control

Quality Control Value investing is another term for Quality ControlI have read plenty of Warren Buffett literature over many years.  However, last week, I noticed a quote from Warren Buffett which I had not read before and it immediately struck a chord with me.

The quote was “Many in Wall Street (a community in which quality control is not prized) will sell investors anything they will buy.”  This quote can be found in a book written by Janet C. Lowe.  It is titled Warren Buffett Speaks: Wit and Wisdom from the World’s Greatest Investor (1997).

This quote resonated with me because I realised immediately that my process of ‘picking stocks’ to buy is essentially an ongoing quality control process that assesses key economic criteria of businesses listed on the Aussie market.

To find and invest in the best stocks, I use quality control metrics where all stocks I invest in must meet or exceed these Key Performance Indicators:

  1. High profitability benchmark
  2. Strong Balance sheet (little or no debt)
  3. Good cash flow

While there are about 2,000 companies listed on the ASX, my quality control yardsticks determine that only about 100 of the best companies currently meet or exceed my key benchmarks.  That is, I will only invest in the best of the best, the top 5% of all available listed companies.  I consider this top 5% to be the safest, most reliable and most profitable businesses listed for purchase.

And, I am constantly researching new businesses to find additional stocks that meet or exceed these quality metrics.  It is fantastic when I find a new business that exceeds my benchmarks and becomes a new investment candidate.  By contrast, in discovering businesses (the majority) that don’t stack up, it is seems logical to exclude them.  To me, it does not make sense to invest in a sub-par business over that of one with superior economics.

By filling The Edge Fund portfolio with a collection of these high quality businesses at sensible prices, I think this quality control strategy is likely to outperform the broader market in the long run.

This article is published by Dean Mico.

The information provided in this article is intended for general use only. The article is intended to provide educational information only. Please be aware that investing involves the risk of capital loss. The information presented does not take into account the investment objectives, financial situation and advisory needs of any particular person, nor does the information provided constitute investment advice. Under no circumstances should investments be based solely on the information herein.

Extraordinary Popular Delusions and the Madness of Crowds

Extraordinary Popular Delusions Charles Mackay Extraordinary Popular Delusions and the Madness of CrowdsI have been flicking through this memoir (pictured) Extraordinary Popular Delusions and the Madness of Crowds by Charles Mackay.  This book is about financial bubbles (manias) such as the Tulip mania in 1637, the South Sea Company bubble in the early 1700′s and the Railway Mania of the 1840′s.

However, as a value guy, reading this book got me thinking not so much about financial bubbles, but quite the opposite.  That is, my perception of the madness of crowds offering irrationally low prices for quality ASX-listed companies at times.

As an investor and keen student of the markets past and present, I think this well known quote from the memoir aptly sums up market behaviour:

“Men, it has been well said, think in herds; it will be seen that they go mad in herds, while they only recover their senses slowly, and one by one.”

Here is some charts illustrating the opportunities to profit from this temporary madness over the past few years…..

Flight Centre Limited
FLIGHT CENTRE TRAVEL GROUP LIMITED Extraordinary Popular Delusions and the Madness of Crowds

Our Flight Centre article from March 2013

Credit Corp Limited
CREDIT CORP GROUP LIMITED1 Extraordinary Popular Delusions and the Madness of Crowds

Our Credit Corp article from August 2012

JB Hi Fi Limited
JB HI FI LIMITED Extraordinary Popular Delusions and the Madness of Crowds

Our JB Hi Fi article from February 2012

The Edge Fund has identified a number of stocks that currently exhibit the same characteristics being:

  • Great quality businesses
  • Sold down by the crowd
  • Despite intrinsic value rising

The Edge Fund has bought some of these companies already such as DWS Limited. And, we have our eye on a few more good companies to buy in the coming months once the crowd has finished selling.

So, while my perception is that the crowd has madly sold (and is still selling) some quality companies, I am delighted to be buying these companies with a view to profiting over the next 6, 12, 18, 24 months as the crowd come to their senses slowly, one-by-one.


This article is published by Dean Mico.

The information provided in this article is intended for general use only. The article is intended to provide educational information only. Please be aware that investing involves the risk of capital loss. The information presented does not take into account the investment objectives, financial situation and advisory needs of any particular person, nor does the information provided constitute investment advice. Under no circumstances should investments be based solely on the information herein.

Am I a Triangle? Yes, I AMM – Amcom Telecommunications Limited

Am I a Triangle?   Yes, I AMM.

Amcom Telecommunications Limited (ASX:AMM) has broken out of a 12 month ascending triangle today.   This suggests an upside measured move to the $2.90 area is highly probable.  Amcom currently ranks a Gold 3 on my fundamental ranking system with good net profits, manageable debt and growing earnings for the forseeable future.

AMCOM TELECOMMUNICATIONS LIMITED Am I a Triangle?  Yes, I AMM   Amcom Telecommunications Limited
(click to enlarge)


This article is published by Dean Mico.

Disclosure: The Edge Fund owns shares in Amcom Telecommunications Limited.

The information provided in this article is intended for general use only. The article is intended to provide educational information only. Please be aware that investing involves the risk of capital loss. The information presented does not take into account the investment objectives, financial situation and advisory needs of any particular person, nor does the information provided constitute investment advice. Under no circumstances should investments be based solely on the information herein.

DWS – DWS Limited

DWS Limited logo DWS   DWS LimitedDWS Limited (ASX:DWS) is a leading Australian IT Services company, providing information technology services to blue chip organisations including government departments since 1991.

DWS prides itself on a business philosophy based upon integrity, reliability and professional service delivery for their information technology solutions.

Does this business have a sustainable competitive advantage?

  1. DWS’s competitive advantage arises from providing its clients with IT services nationally across the entire software development life cycle.  That is, DWS designs, develops, manages and maintains software solutions and IT environments for its clients.
  2. DWS has taken this foundation of IT services and is now extending it into what is now a new digital era by providing services in the areas of Mobile, Social and Cloud Solutions.
  3. DWS promotes that is has a ‘proven delivery methodology and service engagement model’ designed to ‘exceed customer expectations’.  It seems this approach adds value to their clients IT needs.

What are the risks facing this business?
Lower business confidence and reduced government spending are a significant risk to this business.  In fact, this risk has been seen in the past twelve months or so leading into the Federal Election and 2014 Budget with reduced government spending and also reduced business spending in an uncertain environment.

However, DWS has promoted that it is anticipating higher levels of government spending in IT in the medium term. And, the company has presented that it is also expecting higher IT capital expenditure from its corporate clients into the future.

Is it run by able and trustworthy management?
The business is run very well with a strong balance sheet showing plenty of cash on hand.  The company has produced positive cash flow for at least each of the past five years since I have been following this company.

Is it trading at a bargain price?
The company still maintains my Gold 1 ranking despite having had a tough year in 2014.  The tough year has shown in the share price. However, based on my estimate, the difference in intrinsic value between 2014 and 2015 is an increase of 32%.  With the 2014 financial year coming to a close, the market appears to be looking to 2015.

The Chart
Over the past six to twelve months, the company has rightfully been sold down on a weaker outlook and reduced government spending.  But what happens when the last of these people has sold?
DWS LIMITED DWS   DWS Limited
(click to enlarge)

Summary
In summary, DWS is an excellent business with a solid reputation and a good stable of blue chip clients.  It has extended its IT solutions to meet the new digital era including mobile and the cloud.  Management has run the business for many years with a sound balance sheet and the business continually produces positive cash flow.  DWS appears to be a sound investment with the valuation of the business increasing in 2015 and beyond.

This article is published by Dean Mico.

Disclosure: The Edge Fund owns shares in DWS Limited.

The information provided in this article is intended for general use only. The article is intended to provide educational information only. Please be aware that investing involves the risk of capital loss. The information presented does not take into account the investment objectives, financial situation and advisory needs of any particular person, nor does the information provided constitute investment advice. Under no circumstances should investments be based solely on the information herein.

MMS – McMillan Shakespeare Group update

imgMMSWebsiteGraphic MMS   McMillan Shakespeare Group updateMcMillan Shakespeare Group (ASX:MMS) has been a fascinating study over the past year or so. A stock widely moved around as a result of the decisions (and potential decisions) of the government of the day.

I wrote about the company and my view of the situation here after the dramatic price fall last July.

From my perspective, on the 7th of May, the price action hinted that the market knew the decision being handed down the following week at the federal budget would be favourable to McMillan Shakespeare and no changes would take place with regards to Fringe Benefits Tax (FBT).

On the 8th May, again from my view, the price action did confirm a favourable decision was in store for McMillan Shakespeare by breaking up from the downtrend at $10.00 (our recent buy).

MCMILLAN SHAKESPEARE LIMITED2 MMS   McMillan Shakespeare Group update

With the FBT ‘no change’ decision confirmed in Tuesday’s budget, the company’s UK division growing and my estimate of intrinsic value circa $15.00 per share by June 2015 and rising in future years, I think the share price is likely to trend up for the foreseeable future.

McMillan Shakespeare is now confirmed as a long term hold in The Edge Fund.


This article is published by Dean Mico.


Disclosure: The Edge Fund owns shares in McMillan Shakespeare Group.


The information provided in this article is intended for general use only. The article is intended to provide educational information only. Please be aware that investing involves the risk of capital loss. The information presented does not take into account the investment objectives, financial situation and advisory needs of any particular person, nor does the information provided constitute investment advice. Under no circumstances should investments be based solely on the information herein.

TPC – Tel Pacific Limited

Tel Pacific Logo TPC   Tel Pacific LimitedInvestment Summary – Would you buy this business?
Pay 8.9 cents a share for the business and in return you receive

  1. 17 cents a share of cash plus you get
  2. A profitable business with long term growth potential

And then it gets better…….

The company pays you a dividend of 3 cents a share (33.7% dividend yield).

So your cost is now 5.9 cents a share and

  1. You still own your part of the business which now retains 14 cents a share in cash plus
  2. You still own your share of the same profitable business with long term growth potential.

The company
Tel Pacific Limited (ASX:TPC) main business had been the sale of prepaid telephone call cards for overseas phone calls typically to those unable to afford to make international calls on their home phone. Tel Pacific has been operating since 1996.

The company also has:
1. A couple of brands selling mobile phone contracts
2. A service called Mobile Real Time Monitoring; and
3. A recently signed agreement to distribute retail electricity and gas in NSW which kicked off in April 2014 under the brand name CovaU.

The management
Tel Pacific’s managing director is the founder Charles Huang who ‘started up’ the business while in his third year of university in 1996.

The company’s chairman is a guy named Greg McCann. Mr McCann is also the chairman of Moko.mobi Limited(ASX:MKB) an exciting business in the mobile social networking space which is attempting to list on the NASDAQ at present. Mr McCann is also a director of the NBN in Tasmania and appears to be quite a well connected and intelligent guy.

From my research, I can see that management, employees and directors of Tel Pacific own at least 55% of the company’s stock meaning they have plenty of skin in the game and good motivation to continue growing the business.

Upon selling the international calling card business, management declared a 3 cent dividend which in my view, shows they are acting in the interest of all shareholders.

The situation
When I discovered the company in November, the company was trading at 13 cents a share and my estimate of the company’s intrinsic value was 28 cents. Even with the main part of their business (pre paid international call cards) dwindling I thought it was a good proposition given their profitability and the potential for the new ‘energy’ side of the business with CovaU about to open its doors.

I started accumulating shares in this thinly traded stock on the 24th of December. By March the share price had fallen to 7 cents. For three weeks in March I was pretty much the only buyer of shares between 7 cents and 10 cents with our average price being 8.9 cents a share.

On the 24th March, the company announced the sale of the prepaid call card business for $19 million. The share price immediately shot up to 14 cents on this news. All of a sudden, the business has 17 cents per share in cash.

We have paid 8.9 cents a share. The company now has cash of 17 cents a share. The company has actually just gone ex-dividend paying a 3 cent dividend in May. So effectively after the dividend is paid our cost will be 5.9 cents a share and the company will still retain 14 cents a share in cash.

So, we have paid 5.9 cents a share. In return we own shares in an asset (Tel Pacific) that has 14 cents a share in cash plus an ongoing business with good long term potential.

The risks
The business has given up its most profitable division albeit a declining business.

However, Tel Pacific still retains:
1. The ongoing business selling mobile phone contracts (GoTalk and Hello Mobile brands)
2. The Mobile Real Time Monitoring which has a three year contract in place; and probably more importantly for the long term
3. CovaU which is the new business which begun supplying energy (electricity and gas) in NSW in April.

It will take time for CovaU to develop brand awareness and generate sales of their electricity and gas contracts to homes. However, growing off a base of zero will mean any growth will be significant. And, the company certainly has the financial resources and management to make this happen over time.

With at least 55% of the company’s stock held by directors and management , it means the stock is thinly traded and probably more suited (less risky) for those with longer term investment horizons.

The opportunities
I can see that Tel Pacific now have a number of great options going forward. They include and are not limited to:

  1. Growing the energy business CovaU in NSW which is the immediate opportunity
  2. Potentially expanding the CovaU energy offering by picking up agreements to supply gas and electricity in other states across Australia
  3. Opportunities to make sensible acquisitions in either the telecommunications and /or energy space
  4. Management have hinted in an announcement of potential capital management activities. A share buy-back for instance would increase the value of the company for all shareholders
  5. Continued payment of excellent dividends
  6. Or perhaps a combination of all of these options


Is it trading at a bargain price?

Based on my view of the business which retains 14 cents a share in cash, anyone buying below a 14 cent share price is effectively buying the business for free (or cheaper than free).

With a current market capitalization of about $11.8 Million and Cash of $15.2 Million, this makes Enterprise Value a figure of negative $3.4 Million. The negative figure implies that you are buying the business for less than free which I have never seen before.

The chart
TEL.PACIFIC LIMITED TPC   Tel Pacific Limited

Summary
In summary, Tel Pacific is a great little business that maintains stable recurring revenue from its mobile phone brands and mobile phone monitoring business and will begin to generate revenue in its emerging retail energy business. The company has savvy and connected management. And, it has the resource of a massive amount of cash on hand relative to the size of the business to continue growing the business and acting in the interest of all shareholders.

I would not be surprised if all shareholders continue to be paid dividends in the vicinity of 3 cents per annum meaning that The Edge Fund will likely be paid our remaining capital outlay (5.9 cents) within the next two years making our investment in Tel Pacific free at that time.

Sharing the love

At the current share price, we hold the right amount of shares based on our position sizing and risk management rules. So, while we see it as a no brainer to buy more shares, we may as well share our insights so that others can potentially benefit from fractional ownership in this business.

If the share price happens to fall below our initial average share price and we can buy a less than free business even cheaper, we will likely be a buyer thereby reducing our average cost. And, with a 33% dividend coming next week, we may reinvest this cash in the business in any case.


This article is published by Dean Mico.


Disclosure: The Edge Fund owns shares in Tel Pacific Limited.

In fact, The Edge Fund owns enough shares to be a Top 20 shareholder which is a nice little milestone for us as it is our first and hopefully the first of many Top 20 holdings.


The information provided in this article is intended for general use only. The article is intended to provide educational information only. Please be aware that investing involves the risk of capital loss. The information presented does not take into account the investment objectives, financial situation and advisory needs of any particular person, nor does the information provided constitute investment advice. Under no circumstances should investments be based solely on the information herein.

Short selling opportunity – Toll Holdings

Toll Holdings Limited (ASX:TOL) is a large transport business. It is in an industry that largely competes on price where it is difficult to develop a sustainable competitive advantage.

Is the cost of doing business and the carbon tax taking their Toll?

TOLL HOLDINGS LIMITED Short selling opportunity   Toll Holdings

This article is published by Dean Mico.

Disclosure: The Edge Fund has short sold TOL.

The information provided in this article is intended for general use only. The article is intended to provide educational information only. Please be aware that investing involves the risk of capital loss. The information presented does not take into account the investment objectives, financial situation and advisory needs of any particular person, nor does the information provided constitute investment advice. Under no circumstances should investments be based solely on the information herein.