Up to speed

Jeremy Grantham looks to solar as the final hedge

Jeremy Grantham, overseer of investment management fund GMO, argues in a recent quarterly letter that unless the global population declines and our ability to produce renewable energy picks up, we’re swiftly heading towards the collapse of civilisation. So where does the arch-pessimist invest before the apocalypse?

Problem funds

ATO assistant commissioner Stuart Forsyth has heard some interesting excuses from SMSF members over the years but one from just a few years back takes the cake.

Nio Tag sends wireless alert for mobile security

The Bluenio nio TAG is a small white tag that links wirelessly with devices such as iPhones, iPads and laptops through an application from the App Store. If they are separated, an alarm goes off on both devices.

New Fund | Charter Hall Direct Industrial Fund No. 2

The first Charter Hall Direct Industrial Fund ended up with seven industrial properties in Australia, worth $208 million. Now Charter Hall have launched Fund 2 which will look similar and has a highly recommended rating from Lonsec.

Colonial First State Colliers Geared Global Property Securities

One of the biggest names in the country runs this fund, which can invest in commercial, retail and industrial property, as well as some areas that are less familiar in Australia: car parks, hotels and leisure properties.

Platinum International Brands focuses on consumer stocks

Measured against other global equities,Platinum International Brands’ performance has been outstanding, outperforming by more than 11 percentage points every year on average over the past five years.

Snapshot

Atrum Coal (ATU)

While Groundhog has the hallmarks of a long life project with many potential share price catalysts, the completion of a conceptual economic assessment that should be released by June is likely to have a substantial impact on the company’s profile.

Clough (CLO)

The sale of its shares in Forge along with the exit of its marine construction business has created a more focused operation that has substantial capital to fund ongoing growth.

Crusader Resources (CAS)

While Crusader’s share price has rebounded after a sustained slide of about 70 per cent over the past 12 months, it is still trading at a substantial discount to Argonaut’s valuation of $1.65. Earnings projections for 2013-14 imply a price-earnings multiple of about 5 relative to its recent trading range.

CSG (CSV)

CSG Finance should help to drive sales in its business solutions division. With leading names such as Canon and Konica Minolta behind it the company could turn the corner as the markets that it is targeting are generally fairly resilient.

E&A (EAL)

The recently awarded $22.8 million contract that involves mechanical and installation work at the new Royal Adelaide Hospital is a substantial boost to the company’s profile given that this is South Australia’s largest infrastructure project ever undertaken.

Kathmandu Holdings (KMD)

Analysts at Moelis took a positive stance on the company’s interim result and they are of the belief that increased brand recognition in Australia combined with the scope to open at least 50 more stores in Australia and New Zealand augured well for the future.

Korvest (KOV)

Management said that it is on the lookout for further acquisitions, and businesses that have recently been added have the potential to provide cross selling opportunities as well as entry into new markets.

MACA (MLD)

Based on consensus forecast for 2012-13, MACA’s earnings per share should increase by about 30 per cent. This suggests that its forward price-earnings multiple of about 9 doesn’t reflect the company’s growth profile.

Maxitrans Industries (MXI)

The company anticipates a similar second-half performance, which implies a net profit of about $25 million. This is broadly in line with consensus forecasts and suggests there may be scope for further share price upside.

Premier Investments (PMV)

Analysts at Bell Potter are of the view that organic growth will need to come from an increase in sales, in particular “more reliance on rejuvenation of core brands and continued growth offshore”. In the absence of an acquisition this seems to be a fair summation.

RCR Tomlinson (RCR)

Management has demonstrated with its power division that it has the ability to effectively integrate new businesses and achieve operational and strategic benefits for the group.

Ruralco Holdings (RHL)

While it is obvious several of Ruralco’s businesses need to stage a recovery over the next 12 months, the fact that its wool, real estate, water solutions and insurance operations are all performing well is important in terms of assessing management’s performance.

UXC Limited (UXC)

UXC was recently included in the S&P/ASX 300 index, which is likely to elevate its profile and bring it to the attention of institutional investors that manage index-based portfolios.

Western Areas (WSA)

As a low-cost, high-grade nickel producer Western Areas presents as a company that has been oversold based on sentiment rather than substance. Management has confirmed that the company can continue to generate free cash flow and pay dividends at current nickel prices.

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