ASX INVESTMENT VIDEOS€¦ · SPEAKER: Martin Roth, author, Top Stocks 2015 . LOCATION: Melbourne ....
Transcript of ASX INVESTMENT VIDEOS€¦ · SPEAKER: Martin Roth, author, Top Stocks 2015 . LOCATION: Melbourne ....
SPEAKER: Martin Roth, author, Top Stocks 2015 LOCATION: Melbourne DATE: November 2014
ASX INVESTMENT VIDEOS
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Martin Roth: Top Stocks 2015
Agenda
1. Ins and outs in Top Stocks 2015 2. Key trends on this year’s list 3. Stocks to watch
Criteria to make the list
• Must be in All Ordinaries Index • Listed, profitable and paying a
dividend for at least five years • Acceptable debt and profit
performance • 2015 list has 96 stocks
Newcomers on 2015 list
• 16 new stocks made the list • Often, small stocks not yet on the radar of
professional investors • Standouts include:
• G8 Education (childcare) • My Net Fone (telecommunications)
Stocks that dropped off list
• 18 got knocked out • 6 from mining services sector • Unusual to have so many companies from
one sector drop off • Shows how tough it is mining services
Rise of tech stocks
• Number of tech stocks on list rising steadily each year
• Nine of 96 stocks from IT sector • For example, Infomedia, Hansen
Technologies. • IT stocks can offer growth and dividends
More consolidators on list
• Companies that usually acquire small competitors to grow
• Economies of scale and synergies created – profitability improves
• Examples include Austbrokers Holdings (insurance), 1300 Smiles (dentistry) and Greencross (vet)
Benefitting from lower $A
• Australian dollar could continue to weaken in next few years
• More companies doing well overseas • Examples include Domino’s Pizza
Enterprises, Slater & Gordon, Ramsay Health Care
More healthcare stocks on list
• Has become a very dynamic sector • CSL, Cochlear, Sonic Healthcare, Ramsay
Health Care have been strong performers • Healthcare stocks among best performers in
Top Stocks 2015
Retail Food Group (chart source: ASX)
Retail Food Group
• Owns a range of food franchise outlets (Brumby’s Bakery, Donut King, Michel’s Patisserie)
• Acquired two gourmet pizza chains that have high profit margins
• Getting much larger in coffee • Acquired Gloria Jean’s Coffees and Di Bella
Coffee
The Reject Shop (chart source: ASX)
The Reject Shop • Had a poor Christmas in 2013 • Costs were up, partly due to aggressive store
openings • Now, a potential recovery stock • Not opening as many stores • Much depends on this year’s Christmas
trading performance
Servcorp (chart source: ASX)
Servcorp
• Rents serviced offices, mostly to small and medium-size enterprises
• Expanding worldwide • Growing steadily and has good long-term
prospects • Exposed to business conditions, but
diversification mitigates risk
Buying Top Stocks 2015 • Available from Educated Investor Financial
Bookshop, and all good bookshops nationwide
• Also available as e-book
• Take a short online course
• Subscribe to the Investor Update e-newsletter
• Play the ASX Sharemarket Game
• Watch another ASX Investment video
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