One very interesting aspect about Australian stocks is that there are many listed companies whose main activity is some sort of leasing. Those companies are all quite profitable and relatively cheap.
So far I only had looked at one leasing company, AerCap, the US based Aircraft leasing company.
The leasing business simply stated is asset based lending without a banking license. The client, instead of buying something outright and recieveing a loan from a bank, “leases” the good, pays installments and hands over the good after some time back to the lessor.
The leasing company therefore has the following main risks to bear:
The subtitle of this book says “How the middle class joined the money class”, which describes exactly what this book is about.
The book covers the period between the early sixties and late eighties, a time were many financial products for “ordinary” citizens were invented and today are used by almost anyone.
First of all a big “thank you” to all readers who either posted their suggestions as comments or sent me Emails. It definitely looks like that Australia is an interesting stock market and I will have a lot to do and too learn…..
DWS, an Australian IT consulting company is the first Australian company which I found interesting. Why ? There are some aspects which I like and which have worked for me in the past:
A very nice analysis of Mastercard
Deep Value in Singapore: PNE Industries (Alpha Vulture)
Nils has uncovered a potential fraudulent stock scheme at HQ Life
Very good advice: Ignore marketing for financial products. Always.
Zeke Ashton (Centaur) 2015 letter
Very interesting AMA (Ask Me Anything) on Reddit with a Long/short Hedge Fund Manager
2016 wil be another tough year for (Swiss) watchmakers
Up until now, I only looked at one single Australian stock: Australian Vintage two years ago. I didn’t like it mainly because I thought the interests between Management and shareholders were not aligned. Interestingly the stock jumped in the last weeks after doing nothing for 2 years.
Australian stock market facts
Let’s start with some facts about the Australian stock market. According to Bloomberg, there are 2.059 Australian companies listed on the Australian stock exchange, total market cap is 1.59 tn AUD.
No quick fixes for American Express ? And a good post from Punchcard blog on Amex and competition.
Interested in Australian stocks ? Try the Forager Fund blog and the fund reports.
Good post on Italian stocks (Finmeccanica, Piaggio, CIR)
Damodaran on negative interest rates and valuation
The story of “fracking pioneer” Aubrey McClendon
Muddy Waters has updated its Casino short thesis (h/t Valuewalk)
This is clearly a luxury problem: Imagine you bought a stock and for some reason the stock price goes up very quickly let’s say by +40% or so within a few weeks.
What are you going to do ? Sell, buy or do nothing ?
In my case, this “problem” now hit me with Gaztransport. I reviewed Gaztransport first in January 2016 at a price of around 34 EUR. This is what I said back then:
Under those assumptions my results were the following:
10% discount rate: 20,80 EUR per share
15% discount rate: 14,26 EUR per share
So now one could clearly challenge my “model” and tweak it somehow, but in general it looks like that GTT is not a bargain at current prices (34 EUR). To me it rather looks like that the current valuation already implies a certain value for the LNG ship fuel “option”. Therefore GTT at current prices is not interesting to me as an investment.