Momentum Monday 29th January

28th Jan by Elio D'Amato

2 comments 431 reads

Welcome to Momentum Monday.

I know it’s been a while since we have had you share with others the value of Stockopedia. Feb 1 makes a big day as the price of the service rises $100 pa, for $475 to $575. This includes Chris and my time and on a portfolio of $200k, that is a fee of 0.24% per annum with all the trimmings attached. Come Feb 1 that increases to the equivalent of 0.29% - which still makes us the best value in the world AND its risk free!

So if you haven’t yet you have a few days to sign someone up because if they take the free trial, the lower price will be locked in. And if you're wondering you should stay on because of the extra cost - to be frank I will not humour such prosperous thoughts.

It was a shortened week domestically so we could complete our Australian commentary sooner. At the moment things and policies are changing quickly…. But who cares right? We are near record levels!

Interesting links

Weekend Watchlist with Shares for Beginners this week covered a stock discussed with members a few months ago in light of the Nanosonics risks'. It is CUV Clinuvel Pharmaceuticals. Listen here to the replay
Our last webinar before the price for non-members was held on Wednesday covering the NAPS portfolio you received a month ago. There was quite a big audience, however if you feel someone needs to watch it so as they can convince themselves why saving on a small steak dinner for one is worth it for the future prosperity of their families Listen here
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This week’s content is as follows:

Broader market sentiment
Member corner
Stocks in the “Shine Zone” (including changes)
Buses pulling out of the station (volume + price movers)
52 week high screen (including changes)

A reminder that you don’t have to read all this contribution. Simply scroll to the area of interest.

Broader Market Sentiment

We look at the direction of both the US and ASX markets to gain an understanding of the…

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Jonner

30th Jan

I kind of like peeking into what users are looking into on S'.

Don't know about the quality rank for DMP of 84 with the debt levels high and expanding.

Elio do you recommend any books on valuation?

Elio D'Amato

31st Jan

You highlight some really interesting points here.

Firstly, our Quality Rank, as with all measures, is a relative rank. It's not absolute. So not notwithstanding the obvious challenges on an absolute basis it is how the stock stacks up relative to others that gives it the score. A score of 84 means there are 16 better than it (or 293 companies currently) from a Quality perspective only. This leads to the next point.

Secondly, of all the factors, Quality is the one that moves the slowest. That is because Quality can only be calculated when actual numbers are received. What happened to DMP was a business update. So we know what is coming. Basically we would expect the Quality score to drop further once the half years appear in the system. As Momentum, and to a lesser degree Value consider price, they are more susceptible to price reaction as we have seen with DMP.

As always the method is important and it is why Chris and I stress that Stockopedia is a tool. Not a tip sheet. It provides clarity when looking at a broad spectrum of stocks.

For the record, I no longer hold DMP.

You mention "Value" as a separate concept and there are numerous bits of literate on the topic. While I could rattle off names, I see that as being of little value to those wanting to save time (which I think everyone who uses Stocko irrespective of their style can agree on.) Can I point you to the "Strategy Map" which discusses the concept in some detail with regards to different styles. Click here to access it (You will need to enter your first name and an email). Within that you will find appropriate value authors eg Graham (not known for its entertainment value), Buffett (originally), O'Shaunessy etc

Thanks again.

Momentum Monday 29th January

Broader Market Sentiment

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Elio D'Amato

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