Sunday Stock Analysis Series – #4: Computershare Limited (CPU)

Computershare is a great Melbourne based story, being one of its first start-up technology companies.  It was founded in 1978, to provide computer services to businesses that needed to automate processes.

Computershare listed some 16 years later on the ASX with a market cap of around $36 million.  By then, it was managing around 6 million shareholder accounts and had about 50 staff.

It’s come a long way since listing in 1994 – today it’s a global business with a market cap of around $9.5 billion (a mere 264x the size at listing), with over 75 million customer records and 12,000 staff.

Whenever I buy shares for the Fully Franked Fund, it’s Computershare that sends out the letter asking for my details and preferences as a shareholder, so they can maintain all the records and do all the admin on behalf of the company I’ve invested in.

Fund Update February 2019 – Reporting Season Bumper Edition!

February is one of the most exciting months of the year for Australian stock investors – it’s when the vast majority of companies release their half year results!  The market can respond to these results with excitement, indifference, or severe disappointment.  

Let’s find out what the stocks in the Fully Franked Fund experienced during February as they released their half year results to the market…

Let’s start with the big stories:

Sunday Stock Analysis Series – #3: Codan (CDA) ‘the Barbarian’

I’m a little bit intimidated by the next subject of our review, CODAN:

This frightening looking fellow was enslaved as an orphaned after his village was destroyed by the forces of the evil Thusla Doom, forced to push ‘The Wheel of Pain’ for many years. Upon reaching adulthood, he set off on an epic adventure, starting a business which was eventually listed it on the ASX in 2003…

… oh I beg your pardon – that was CONAN…  let me start over…

So the story on Codan Limited is a little less exciting than that, but it has some pretty cool – albeit less barbaric – business operations.  It has four distinct business units:

Sunday Stock Analysis Series – #2: Ramsay Health Care Limited (RHC)

We kicked off our first Sunday Stock Analysis Series last week with Nufarm.  Whilst it only rated a 4 out of 10 on the Fully Franked Finance Proprietary scoring system, we still learnt plenty about the company.  And at the right price, any stock is a potentially good investment – so we’ll keep our eyes on Nufarm.

This week, I sense we have a much stronger contender…

Ramsay Health Care is Australia’s largest operator of private hospitals, and has grown to be one of the largest in the world, with the majority of its international facilities in France and the UK. 

It has a total of 480 facilities (meaning hospitals, specialist clinics or primary care units) across 11 countries, which was boosted by its recent acquisition of European based Capio – adding 40 hospitals and a heap of other specialist clinics and primary care units.

Ramsay has also created a community pharmacy brand which operates around 35 pharmacies, as well as a retail franchise operation with 55 pharmacies.

Apple: The First Trillion Dollar Company – Will Gary Take a Bite?

Apple – it’s a company I’m sure you’ve heard about.

Over 60% of its sales comes from iPhones – it had sold one billion of these things by the end of 2014, and isn’t far off hitting the 2 billion mark.  The rest of its sales come from iPads, Macs and other services.

Sure, billions of iPhones sounds impressive, but when you sell these things for a few hundred dollars each, you’ll see how it generated a quarter of a trillion dollars in sales last year.

But when we talk about total company value, Apple hit the one trillion dollar mark last year.

Trillion is a massive number.  And yes, it’s a real number – unlike gazillion or bazillion.  It’s a million millions, or a thousand billions.  Either way it’s pretty hard to get your head around.

But today, Apple is only worth about 4/5ths of a trillion.  A 20% discount to a trillion! 

NEW! Sunday Stock Analysis Series – #1: Nufarm Limited (NUF)

Welcome to a new segment of Fully Franked Finance, where each weekend we select a stock to review in detail.

As a ‘stock-picker’ and value based investor, it’s always worth keeping an eye out for new ideas.  Whether those ideas turn out to be worthy or not doesn’t really matter – you’ll have learnt something either way. 

So with that in mind, let’s kick off our first Sunday Stock Analysis Series with…

Nufarm was one of the six slammed stocks from our suffering-stock-o-tash analysis back in July 2018.  Today we’ll have a closer look at Nufarm and see how it rates as a Fully Franked Fund contender.

Fund Update January 2019 – Benny Bounces Back (a Bit)

It’s a new year, and a new race for the annual Fully Franked Finance trophy. 

But as fun as these annual contests are, they are merely a sprint in a much longer journey.  The ultimate trophy is ending up with a sizeable portfolio that has been successfully managed and grown over the years – and everyone can win that competition.

For regular readers, you’ll notice some slight changes to the monthly reporting format.  Rather than just sharing the details of my own portfolio, and how far ahead or behind Ian and Benny’s it is, all of the Fully Franked Finance gang will have a full summary of their own portfolio and holdings.

You’ll also see all the details for each in one easy-to-digest picture.

So let’s see how the year has started for everyone… Frankie First…

Virtus Health – Getting Unhealthy? Diagnosing with the DCF

Virtus Health was the very first stock to make it into the Fully Franked Fund just over a year ago.  After a close look at Four key aspects – Dividends, Value, Assets and Debt – it ticked all the boxes:

  • Great dividends with a Fully-Franked yield of 7.0%
  • Good value at a P/E of around 13x, which doesn’t seem to be pricing in much growth at all
  • Intangible assets seem pretty cheap
  • Minimal debt
  • A market leading business in an industry that should keep on growing

Despite a good start to life in the Fully Franked Fund, Virtus stock seems to have become a little ill the past few months.

As much as I’d like to just ‘set-and-forget’ with my stock purchases, the reality is that regular check-ups are necessary to make sure the stocks are still healthy and fit enough to remain in the Fully Franked Fund.

So after 12 months, and a nasty bout of stock-flu, it’s time for a rigorous diagnosis of Virtus Health.

Benny’s Bunch takes a Swing at Frankie – 2018 Performance

Blindfolded Benny has his Bunch of stocks up and running now, and we’re both very keen to see how it fared during 2018 – especially against Frankie’s Fund.

Benny is Following Frankie’s Footsteps with the exact timing and value of shares purchased, with one key difference – Benny’s stocks are random, as selected with your help.

DivvyDad had a quick look at the stocks in Benny’s fund a few days ago and speculated that they might be rather volatile stocks – will that show up in the performance over 2018?

Well let’s find out – here it is, the performance of Benny’s Bunch up to December 2018!