The Fed Sees No Crisis Ahead – We Can Relax?

Last week, leading media outlets led with a sensational headline that instantly grabbed my attention – “Fed’s Yellen expects no new financial crisis in ‘our lifetimes”. She was saying that the US now has a safer financial system, thanks largely to the efforts of the Fed. But will a safer system embolden market participants to take greater risks, thereby making the system riskier?

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A Valuable Treatment

Resmed was the first company under my coverage when I joined Montgomery and I’ve thoroughly enjoyed following the company for five years. Over this time, I’ve always been fascinated by the treatment of sleep apnea, and it’s helped shape my understanding of an important investing principle: To generate value, you don’t need to solve a problem, you just need to provide a solution that’s materially better than your competitors.

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Is Woolies Trading At A Discount?

In our continued search for places to deploy capital, we recently reviewed the listed supermarkets and asked: ‘Are supermarkets trading at a discount to intrinsic value?’ After all, since mid-2014, the Wesfarmers (ASX:WES) share price has barely moved, while Woolworths’ (ASX: WOW) has fallen sharply. Our analysis threw up some interesting findings.

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Australia May Need To Import Natural Gas

Three years ago, AGL Energy warned of the dramatic imbalance between Australia’s LNG export commitments and inadequate domestic supply. Today, AGL is assessing the merits of building a gas import facility. That’s right. Australia, with some of the world’s largest natural gas reserves, may soon need to import gas for domestic consumption. How has it come to this?

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A False Start With Carsales’ Result

Carsales (ASX: CAR) announced solid growth in its core business for 2016, yet it was news concerning its rival CarsGuide that initially caught the market’s attention.  Carsales’ full year 2016 result coincided with reports that News Corp was selling its 50 per cent stake in CarsGuide to Cox Automotive. CarsGuide is a distant rival to Carsales, and it’s actually Gumtree who’s posing a more competitive threat to Carsales in Australia by offering free ads to private sellers and gradually enticing dealers onto its site.

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What’s The Go With Pokemon?

You may be wondering why Pokemon is suddenly everywhere. Wasn’t that a fad 20 years ago? The popularity of the Pokemon Go app has not only turbo-charged Nintendo’s share price. It has also shown us, yet again, the significance of the ‘network effect’ – where a good or service becomes more valuable when more people use it.

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Stocks We Like – Healthscope

Australia’s population is ageing, yet the public and private hospital systems are growing at very different speeds. Public hospital beds grew by 1 per cent each year between 2010 and 2014, compared to 3 per cent annual growth in the private system. Increasing demand for hospital care will flow to operators that are expanding capacity, which means that major private hospital companies like Healthscope (ASX: HSO) and Ramsay Health Care (ASX: RHC) are well placed to grow earnings over the long term.

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