Random Reads

Warren Buffett says, “I just sit in my office and read all day.” Not everyone can afford to devote themselves to reading to that extent so here's a shortcut - the headlines that caught our eye this past week and compelled us to click and read.


Mergers and acquisitions often disappoint | The Economist

The study looked at M&A deals done by listed companies in America’s Russell 3000 index between January 2001 and August 2017; deals were only included if they cost more than 5% of the total enterprise value of the acquirer (5% of the equity value, for financial companies). The acquirers’ shares underperformed the market (see chart) and those of rival firms in the same industry.


Vital Signs: the spooky mortgage risk signs our bankers are ignoring | The Conversation

To put it in context, there appears to be in the neighbourhood of A$1 trillion of interest-only loans on the books of Australian banks.


Trump and Stocks: What Gives? | Bloomberg

The International Monetary Fund, echoing increasingly gloomy sentiment in Washington, has concluded that the Donald Trump administration and Congress probably won't succeed in enacting tax reform or even significant tax cuts... Stock market investors do not appear to be worried about any of these things.

Say Goodbye to the China Bid | WSJ

So far this year, outbound mergers and acquisitions by Chinese companies are down 27% from the same period a year earlier, according to Dealogic.


HRL Holdings: Another ALS in the making? | livewiremarkets

While a microcap it shares a lot of similar attributes to ALS Limited (ALQ:AX) or global behemoths like Bureau Veritas SA (4BV:GR) and SGS (SGSN:VX) in terms of the products and services it provides to its customers. The industry is split between very large players (as mentioned above) and very small private players with no real mid-tier player. HRL is seeking to be that mid-tier player...

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We reckon equity is a key incentive

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New commentary up on livewire: An overlooked small cap agri stock

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