This week, we discuss Paragon’s (ASX:PGC) profit downgrade, Nearmap’s (ASX:NEA) stellar performance and why Kip McGrath (ASX:KME) is Claude’s second largest position. Plus, Matt takes us through how he likes to prepare for earnings season, and why it matters.
Episode 13: Paragon, Nearmap, Kip McGrath and preparing for earnings season
Why are Recurring Revenues Valued more than Traditional Annual Revenues?
The last few decades have seen a sharp and prominent rise of software companies whose business models revolve around largely upfront development and marketing costs followed by ongoing recurring revenues. They have been dubbed as software as a service (SaaS) companies and there is no doubt that this has been a buzzword in recent times, justifiable or not. Often the […]
Valuation for beginners
Valuation is — or at least should be — at the core of any investment decision. Without a general idea of what a stock is ‘really’ worth, how can you know if the market is offering you good value? Defining the true, or intrinsic, value of a business is easy; it’s the discounted value of the cash that can be taken […]
The Power of Incentives
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 […]
Investing in uncertain times
If there’s one thing that markets hate, it’s uncertainty. And with trade wars, political ructions and mixed economic signals — not to mention a host of company specific factors — it’s tempting for investors to sit on the sidelines until the outlook becomes clearer. The trouble is, if certainty is what you crave, you could be waiting for a long, […]