Blog

“Your Stock Request” – 17 June 2021

“Your Stock Request” is a weekly video where we analyse share price charts for stocks on the Australian market (ASX) as requested by you! Email us at mail@fairmontequities.com with your stock request. Limit of one per person, no guarantee of a mention. This week’s stock request: (ASX:NAB), (ASX:PPK), (ASX:WES), (ASX:PWH), (ASX:AGY) Michael Gable is managing director of Fairmont Equities.   Latest prices available on the ASX website. You can learn more about technical analysis in this article.  An 8-week FREE …

Read More“Your Stock Request” – 17 June 2021

Categories YSR

The pros and cons of debt financing

In our last article, we discussed stock dilution which can be the result of a company raising more equity.  However, companies can also raise money through debt financing. In this article we discuss the pros and cons of debt financing. Pros of debt financing 1.Ownership. When companies choose debt to finance new projects, they are keeping the company ownership as is. However, when they raise equity instead, investors who buy an equity position of a company also obtain a part …

Read MoreThe pros and cons of debt financing

Bega Cheese still represents good value

We recently researched Bega Cheese (ASX:BGA) to assess the fundamentals in light of a major acquisition (which has doubled BGA’s revenue base) and more favourable trends in macro indicators. With the shares having declined from its recent high, do these factors provide scope for a recovery in the shares? About Bega Cheese Bega Cheese  is engaged in: i) The processing, manufacturing and distribution of dairy and associated products to both Australian and international markets, and ii) The processing and manufacturing …

Read MoreBega Cheese still represents good value

“Your Stock Request” – 10 June 2021

“Your Stock Request” is a weekly video where we analyse share price charts for stocks on the Australian market (ASX) as requested by you! Email us at mail@fairmontequities.com with your stock request. Limit of one per person, no guarantee of a mention. This week’s stock request: (ASX:COL), (ASX:MND), (ASX:ELO), (ASX:3DA), (ASX:PKS) Michael Gable is managing director of Fairmont Equities.   Latest prices available on the ASX website. You can learn more about technical analysis in this article.  An 8-week FREE …

Read More“Your Stock Request” – 10 June 2021

Categories YSR

What is stock dilution?

Companies may need to raise capital and instead of borrowing, they can issue a share purchase plan or convertible securities. The benefit of these methods is that they do not take on more debt. However, the downside is that this can cause the stock to dilute. In this article we explain what a stock dilution is and the consequences when this occurs. Why do companies dilute their stock? Companies may issue share purchase plans to raise capital to fund a …

Read MoreWhat is stock dilution?