Northstar quarterly market reports
The Northstar Market Report provides powerful empirical evidence as to why we are confident that our investment philosophy and process, closely followed, will deliver market beating returns for our clients over time. This work again points to controllable factors - markets move wildly, falling in and out of love with different sectors and companies, but we have a defined formula that works and we stick to our guns by only owning quality companies when they are incorrectly valued by other investors. We discuss stocks in this report, delving into our investment cases for specific securities which we own.
CURRENT QUARTERLY REPORT
2018 – Quarter 3
THE BIG PICTURE
Style investing – What works, when?
There are many investing styles. To recognise a style, one can look at the factors an investor considers key before allocating capital to an opportunity.
FROM THE ANALYSTS
Equities – Vodacom
Regulatory headwinds and changing consumer trends have negatively impacted the South African mobile telecommunications sector with all four operators feeling the effects of a sector-wide de-rating over the last year. While investors have become increasingly negative and are likely to apply a higher risk premium in valuing these businesses, we feel important company specific characteristics are being neglected.
FROM THE ANALYSTS
Equities – Apple
In the 3Q 2017 Northstar Market Report we highlighted our focus on free cash flow (FCF)¹ as one mark of superior company fundamentals. We also showed how we could discern the market’s implied in perpetuity FCF growth expectations for a particular company from the current share price and how this provides a useful shorthand or high level approach to valuation.
It’s May Day for Election 2019
The Zondo commission has finally got out of the starting blocks and already some interesting skeletons have begun to tumble out of the proverbial closet of State capture. Explosive testimony by former deputy finance minister, Mcebisi Jonas, has exposed the brazenness of the Gupta smash and grab on our economy. It remains to be seen if anybody will actually be held accountable but in true South African tradition, we hope for the best but expect the worse. As the Zondo commission unfolds, the slowing economy, petrol price increases and escalations in the cost of living have started to bite, citizens have begun to count the real cost of the scourge of state capture.
Northstar Roadshows 2019
We are hosting advisors in Durban, Johannesburg and Cape Town on the dates and times indicated in the attached invite. This invite was e-mailed to all financial advisors which we have on record. Demand has exceeded our expectations in Cape Town and Durban but we are happy to accommodate more guests at all venues. Should you want to attend, please send an e -mail to firstname.lastname@example.org. You are also welcome to bring along your clients. Our existing Northstar clients will be hosted at similar events in the months ahead – please watch for invites in your mailbox.
STAFF MEMBER PROFILE
What is your function at Northstar?
I am an equity analyst and work in the South African equities team. I am responsible for analysing various companies which are listed on the JSE. This involves writing up research reports on these businesses and building financial models on each.
QUARTERLY REPORTS ARCHIVE
Browse all our quarterly reports available by selecting the period from the dropdowns using year and date.