I believe small-cap investing could be profitable whether the economy is doing well or poor. You should be aware of how these external factors might affect your investing. Interest rates, economic down turns and the supply of credit can all affect small-cap stocks in the short-term. But long-term, what impacts small-caps far more is their earnings potential.
Banks always have and always will attract the type of individual who wants to make a lot of money from being ‘a banker’. And while there are plenty of decent ones around, the truth is there are plenty of abhorrent individuals willing to fleece other people for their own benefit. Things took a turn for the worse when the banks began to get into the wealth management game in the early 2000s.
After a delayed process, Woodside Petroleum Ltd [ASX:WPL]’s gas project off Western Australia has managed to gain support amongst partners with North West Shelf liquefied natural gas. Today Woodside’s share price grew by 1.11%
‘Nothing lasts forever.’ Plain spoken and no-nonsense, this is a saying that governs all aspects of our lives. And when it comes to the markets, this impermanence is the shadow that is always lurking behind the scenes.
All the banks charge Lender Mortgage Insurance when home loans with more than 80% loan-to-value ratios are taken. Let’s get this very clear. This is a very expensive premium. And you pay it to protect the bank if you can’t repay the loan. That’s right, you’re paying an insurance policy that protects THE BANK...
Village Roadshow Limited’s [ASX: VRL] share price has fallen by 12.70% today, following the release of a trading update. Shares are currently trading at $2.75, down from $3.15 yesterday. The fallen share price reflects the decrease in expected earnings for FY18, revealed in today’s trading update.
Hang on, I thought Trump and everyone else was getting ready to fight North Korea’s Kim Jong-un? Apparently not. Syria is now the target of Trump’s wrath. The biffo is both ideological and economic. The other motivating force behind this ongoing war though is — surprise, surprise — energy.
As previously stated, China is Australia’s largest trade partner. And the US is Australia’s third largest (with Japan coming in second). The US is Australia’s biggest foreign investor. China comes in seventh spot. So Australia could potentially have trade wins from both nations, if tensions increase between the two.
China is no longer a copycat of the West. They’re quickly becoming an innovation nation just like they’ve been saying. The government just spent US$10 billion to build a quantum lab. According to the OECD, China is now the second largest scientific powerhouse, behind the US. And as you can see, China is pumping out patents like crazy.
I’m going to talk about valuation…as in fundamental, old school asset valuation. I’m also going to talk investor psychology and how when you get the two of them working together, or in this case against each other, the results can be spectacular. And given the recent controversy over Blue Sky Alternative Investments, I thought it would be interesting to perform an intrinsic value calculation to see where actual value is for the company.