Episode 11: Audinate, Volpara, Dicker Data, locality Planning and listener mailbag

…or are we already there?

Company earnings drive share prices over the longer term. More specifically, earnings per share, or EPS, does. It’s the great attractor that ultimately pulls prices along. You won’t find a single example of a company, ever, that has compounded its stock price over decades without also compounding EPS. It just doesn’t happen. That’s why EPS should sit at the centre of […]

There’s an old (and quite unscientific) investment principle called the ‘rule of five‘ which states that for every five stocks in your portfolio, one will significantly outperform the market, three will more or less match it, and one will…well, it’ll suck. Badly. Overall, that makes the whole business of portfolio management seem rather futile. If the end result is pretty much a wash, […]

This week, Matt picks through the crypto wreckage — are there bargains to be had now the bubble has popped? Also, Andrew walks us through Woolworths’ massive share buy-back and the boys talk though some of the ways companies can manipulate their accounts, and how investors can spot a few red flags.

Charlie Munger once said “show me the incentive, and I’ll show you the outcome“.  A great example comes from 1860s, when the British contracted ship captains to transport convicts to our sunny shores. Back then, the survival rate of those poor souls was a miserable 40%. Human rights weren’t exactly a high priority, but most still felt that allowing 6 […]

Utilities and airport software specialist Gentrack (ASX:GTK) has today told investors to expect a full year operating profit (EBITDA) of between $27 – $28 million, less than previous guidance which called for a result “marginally ahead of FY18 ($31 million)”. Gentrack said the downgrade was due to delays in customer projects and contracts as well as bad debt risks in […]

Tune into any results call and you’ll hear plenty of smart-sounding questions (and a lot of alpha-male signaling). What you almost never hear are the questions that risk making someone look silly — even when they’re the ones that are really worth asking.   Technical, sophisticated questions are great for showing off, but it’s the simple, ‘dumb’ ones that really crack things […]

When you’ve been around small-caps for a while, large daily moves aren’t unfamiliar. Much of the time, they’re best ignored. Shares in 8common (ASX:8CO) last month spiked by 29% in a single day after the business released an encouraging quarterly result. A nice gain, for sure, but one that was driven by less than $20k worth of trades. Shares are now back at where […]