Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

'Huge fan of your work. Very impressive!' - Scott Pape, The Barefoot Investor, Australia's #1 bestseller.

'Must-read, must-follow, one of the finest analysts in Australia' - Stephen Koukoulas, ex-Senior Economics Adviser to Prime Minister Gillard.

'One of Australia's brightest financial minds, must-follow for accurate & in-depth analysis' - David Scutt, Business Insider.

'I've been investing 40 years yet still learn new concepts from Pete; one of the finest young commentators' - Michael Yardney, Amazon #1 bestseller.

'The most knowledgeable person on Aussie real estate - loads of good data & charts...most comprehensive analyst I follow in Oz' - Jonathan Tepper, Variant Perception, 2 x NYT bestseller.

Friday, 25 November 2016

Another value stock crushed

Crazy times and wild valuations for global stocks.

In October the beleaguered FTSE 100 ran all the way up to nearly 7100 in the face of a dire referendum result. 

This week alone we have seen:

  • S&P at all-time high
  • Dow Jones at all-time high
  • Russell 2000 at all-time high
  • NASDAQ hit all-time high
  • Mid Cap 400 at all-time high

Of course, this will end in tears eventually. 

And yet with resources earnings having been crushed Australian stocks remain miles below their pre-financial crisis peaks, even nearly a decade on. 

Even now valuations aren't particularly appealing. 

Despite interest rates stuck at record lows Aussie share markets remain remarkably jumpy. 

Time and again popular value stocks are being smoked for reporting anything out of step in guidance or trading updates.

Last week it was iSentia's (ASX:ISD) turn, reporting in a trading update that its August 2015 Content Marketing acquisition King Content would rack up a unwelcome EBITDA loss of ~$2m in FY17 H1.

The market crucified it. 

Share price annihilated, now down to $2.50 from a 52-week high of $4.95.

Source: ASX 

Just one example of many.