Grant Davies talks to Andrew Patterson of the National Business Review regarding the markets. Grant analyses the dynamics of the power sector within the context of record rain fall in the North Island, and low lake levels in the South Island. This week also saw the highest level of inflation for 5 years, a solid result from Restaurant Brands, and big subsidies announced for aged care workers. We look at how these subsidies will impact the aged care sector and the...

Sonic Healthcare is the largest private pathology player in the Australian private pathology testing market with 40% share. Scale has been achieved via multiple acquisitions, integrated using a well-established hub-and-spoke operating model, has driven synergy benefits domestically and we believe will support the offshore growth strategy in the U.S. and European markets. Sonic has historically grown via acquisition, both domestic and offshore. With approximately 40% of the domestic market now captured, it is our view that future growth will be...

It requires discipline to stay invested through volatile times and capture the long–term performance of the market. Investor behaviour often deviates from logic and reason, and investors display many biases that influence their investment decision-making. There are seven strategies that can help cut through the noise and emotional biases, and help you to invest more successfully over the long-term. Start Investing as early as possible It’s never too early to start investing. Investing early develops positive habits and teaches important...

The UK Listed trusts' manage diversified international share portfolios and rely on the managers ability to navigate the global financial markets. These investments are listed on the London Stock Exchange and are denominated in Sterling. Bankers Investment Trust PLC provides a one-stop shop for global equity exposure. Its legacy was strongly UK-centric exposure, while current managers have opted to invest over 60% of the fund outside of the UK. There is a strong income commitment, which has been fulfilled for more...

Ramsey is a global hospital group operating 223 hospitals and day surgery facilities across Australia, the U.K., France, Indonesia and Malaysia. It is also the largest and most diversified operator of hospitals in the Australian private sector. Scale of Ramsay’s operations in the Australian context underpins, in our opinion, a sustainable competitive advantage which drives both cost advantage and a reasonable level of pricing power in negotiations with private health insurers. Unlike the United States, the Australian healthcare system relies...

Santos is looking attractive after a material reduction in balance sheet risk. With shares trading at nearly AUD 3.66, we believe investors are offered 44.8% potential upside. Capital expenditures now run at largely a maintenance level, and we forecast free cash flow to exceed AUD 1.0 billion by the end of 2021—sufficient to expunge net debt in that year all else being equal, including reinstatement of a 40% payout ratio from 2018. Santos is currently paying no dividends. Net debt/EBITDA...

With global wholesale interest rates on the move again we thought it would be advantageous for our investors to have a comparison between bank term deposits and the fixed interest investments available on the New Zealand debt market. Below is a list of just a few of the listed fixed interest investments available. Fixed Interest Issues Issuer Code Maturity Date Yield Cooperative Bank COO010 28/07/2026 6.50% Infratil IFT230 15/06/2024 5.95% ASB Bank ABB050 15/12/2026 5.30% Kiwi Bank KCF010 15/07/2024 5.19% Infratil...

Retirement village exposure has long been a mainstay of our clients' investment portfolios. Ryman being Christchurch based means we have many clients who rallied behind the stock early, realising the company’s potential. The NZX now has 4 pure play retirement companies, and Infratil who own 20% of Metlifecare and RetireAustralia (who have 28 villages in NSW, SA and QLD). So investors are awash with options when it comes to retirement village exposure, but what option is right for you. There is...

Hamilton Hindin Greene director Grant Williamson Spark New Zealand says an independent valuation range for its takeover target, TeamTalk, lacks credibility and the top end of the range amounts to an "absurd premium". TeamTalk shares surged after the report was released and are now higher than Spark's offer price. Auckland-based Spark, New Zealand's biggest telecommunications group, has offered 80 cents per share for TeamTalk, a 78 percent premium to where TeamTalk shares traded before Spark announced its intentions in February....

Fletcher Building will have to work hard to earn back trust, but Monday's large profit downgrade is far from disastrous for the country's biggest construction firm, an analyst says. Auckland-based Fletcher Building said its profit could be up to $150 million less than it indicated it would be just three weeks ago, after the cost of two major projects blew out. Fletcher Building refused to say which two projects were responsible, but chief executive Mark Adamson said on Monday "people did...