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Posted on 02 Aug 2017 by Steve Johnson

Why We’ve Sold Reckon

Why We’ve Sold Reckon

 

A few investors have noticed Forager’s recent sale of our substantial holding in Reckon (RKN). We will provide more details in the September Quarterly Report. But to head off a few questions we have been receiving, our rationale can be summarised into four broad reasons.

First, the spin-off of Reckon’s document management business has eroded value. Now called GetBusy, the business has been separated from the rest of Reckon. It will start trading on London’s AIM exchange this Friday. It is either difficult or impossible for Australian shareholders to own the shares. The best of some bad options was to sell Forager’s holdings into a bookbuild, where we received roughly $0.16 per Reckon share. This rapidly growing part of the business was pencilled in at $0.30-$0.40 per share in our valuation.

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Posted on 31 Jul 2017 by Gareth Brown

European Air Traffic Still Ascending

European Air Traffic Still Ascending

 

In February we published the blog post Europe Takes Off, which showed growth in European air traffic at 18 major airports. The second half of 2016 in particular showed impressive year-on-year growth right across the continent. We wondered whether it would continue, particularly into the busier northern summer months.

This article provides an update, with an additional five months of data coming from most airports. But first, let’s repeat some caveats related to individual airport results. Continue reading “European Air Traffic Still Ascending”

Posted on 20 Jul 2017 by Alvise Peggion

Solid Prospects for Cementir

Solid Prospects for Cementir

 

If you have visited Rome, you might wonder how so many temples, bridges and aqueducts constructed during Roman times are still standing. Cement, a mix of crushed limestone, clay and volcanic ash provides the answer. When mixed with water, cement gives strength and durability to concrete.

Nearly 2,000 years have passed and this ‘Roman recipe’ has hardly changed. Cement has become a huge industry. Consumption globally stands at nearly 4 billion tonnes annually and cement makers generate more than US$250 billion a year in sales.

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Posted on 17 Jul 2017 by Kevin Rose

Amazon Turns Over the Grocery Cart

Amazon Turns Over the Grocery Cart

 

Online retail giant Amazon (NASDAQ: AMZN) has announced an agreement to buy one of America’s most successful grocery retailers Whole Foods Market (NASDAQ: WFM). The acquisition signals Amazon’s latest move as it searches for the optimal business model to compete against its biggest rival, Wal-Mart (NYSE: WMT). Amazon had recently begun to inch into physical retail, but this move represents a giant leap.

Much of the speculation over the tie-up has focused on the potential fallout from the combination. How will competitors fare and who stands to win or lose? Consensus suggests peers in the grocery industry will be in for a fight. Broadline retailers like Target (NYSE: TGT) and Costco Wholesale (NASDAQ: COST) will face pressure as well. Continue reading “Amazon Turns Over the Grocery Cart”

Posted on 13 Jul 2017 by Steve Johnson

Coulda Shoulda Mining Services

Coulda Shoulda Mining Services

 

My father used to take me to the horse races as a child. It became something of a father-son thing over the years – usually expensive but always entertaining.

It never mattered which horse won. Dad had “looked at it” and “shoulda backed it”.  It happened so often we started calling him “coulda shoulda Johnson”.

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