Blog - Page 2 of 208 - Fairmont Equities

When to buy Nine Entertainment shares

January 12, 2022 by Michael Gable

We recently researched Nine Entertainment (ASX:NEC) after the Company released a trading update for the 1st quarter of financial year 2022 (1Q22). Media stocks are generally well leveraged to a domestic economic & business recovery once COVID-19 challenges and restrictions ease. However, Nine Entertainment shares have struggled to gain any real ground over the last year. Accordingly, we assess the extent to which both macro and Company-specific factors can provide future upside in the shares. About Nine Entertainment The principal …

4 ratios to measure profitability

January 6, 2022 by Lauren Hua

The profitability of a company is an important metric because it can give a good indication to the company’s financial health. In this article we outline 4 ratios investors can use to evaluate the company’s profitability. 1.EBITDA margin This ratio can identify the earnings of a company before interest, depreciation, and amortization as a percentage of the revenue. This will show the company’s operating profit in comparison to the revenue. The formula for EBITDA Margin = Earnings before interest, depreciation …

Is the pullback in McMillan Shakespeare shares a buying opportunity?

January 5, 2022 by Michael Gable

The share price of McMillan Shakespeare (ASX:MMS) has endured a period of weakness since late September. One of the reasons for the weakness has been the impact from new vehicle supply constraints on the novated leasing business. We recently researched the Company to assess whether there were other fundamental drivers that could offset the earnings impact. Is the market overlooking earnings potential from other areas of the business & initiatives? Or are the benefits from these too far into the …

“Your Stock Request” – 23 December 2021

December 23, 2021 by Michael Gable

“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:RNU), (ASX:WHC), (ASX:MGX), (ASX:QAN), (ASX:PTM) 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 …

Why inflation is bad for markets?

December 23, 2021 by Lauren Hua

We have discussed what stocks do well in high inflation in our previous article, but in this one we discuss why share markets do not like inflation. Increased cost of raw materials for companies may cause expenses to increase. Companies will pass these increased costs to consumers making the product more expensive. The increase of price may mean less units are sold as demand is decreased. If there is a general level of price increases of everything and there …