Category: Newsletter
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BKW and SOL Merger: A Strategic Acquisition Overview
The merger between Brickworks and Soul Pattinson is largely a takeover by SOL, with shareholders receiving 72% of the new company, TopCo. Valued at $14 billion, the deal benefits BKW by relieving debt and ensuring focused management. The market reacts positively, suggesting potential value enhancement for both companies.
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High Levels of Debt Have Never Been Good for Investors!
By Anton Crabbe 24th May 2025 I am always surprised when I see market reactions to high debt levels and credit downgrades, as we have seen recently with US long-term bond yields touching 5%, their credit rating being downgraded. Also, credit rating agencies have indicated that Australia’s and some state government credit ratings (mainly Victoria)…
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Does Gold Stock Diversification Reduce Portfolio Volatility?
The analysis by Anton Crabbe explores the impact of holding gold stocks in a portfolio over nearly 10 years. It contrasts the performance of two gold stocks, Newcrest Mining and Evolution Mining, revealing that investments in Evolution performed significantly better. Crabbe advocates for a diversified approach to manage risk and enhance capital growth.
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What Drives the Share Market?
The ASX market is highly concentrated, with the top 10 stocks representing 47% of market capitalization and 59% of profits. As a fundamentally driven investor, the author notes the importance of forward earnings in stock valuation and predicts no major market crash unless top companies’ profits are severely impacted.
