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Author: Henry Fung - Partner Managing Director

How To Invest In Shares 2019 – The Definitive Guide

by Henry Fung - Partner Managing Director Henry Fung - Partner Managing Director No Comments

This is the ultimate guide on how you can learn to invest in shares in 2019.

I think you’ll agree with me when I say:

Investing is complex and making money in the stock market is not easy.

However, did you know there is really only a few basic concepts you need to know that can help you make money from shares?

In this post, I am going to show you exactly what those concepts are:

  1. Understanding risk and reward and using this to your advantage
  2. The difference between alpha and beta returns and why index investing is bad
  3. How to get outsized returns with the right techniques and position sizing
  4. Preparing for the next financial crisis and protecting your capital

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Why Santos (ASX STO) Is A Long Term Buy

by Henry Fung - Partner Managing Director Henry Fung - Partner Managing Director No Comments

Santos Limited (ASX STO) is the second largest independent oil and gas producer in Australia. Established in 1954, Santos has five major long-life natural gas and LNG assets. In FY18, Santo’s sales revenue increased 18% to US$3,660M, operating cash flow increased 26.4% to US$1578M and EPS increased from -17.3 to 30.2 cents.

Gas and LNG accounts for 69% of Santo’s sales. Santo’s market capitalization sits at AUD$15B, with current P/E at around 24 times.

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Qantas (ASX QAN) Not Affected By Boeing 737-Max Problem

by Henry Fung - Partner Managing Director Henry Fung - Partner Managing Director No Comments

If you currently hold Qantas (ASX QAN) stock or are looking to purchase some stock, you’re probably wondering will the recent 737-MAX incidents affect the Qantas share price?

After liaising with Qantas, they have confirmed that they hold none of these planes and don’t have any ordered. While Virgin has ordered 30 of these planes, this presents an opportunity for Qantas to take advantage of how Virgin will be affected by this if there is a critical problem with the 737-MAX in the long-term. Read more

Why Fisher & Paykel Healthcare (ASX FPH) Is A Stock To Watch

by Henry Fung - Partner Managing Director Henry Fung - Partner Managing Director No Comments

Fisher & Paykel Healthcare (ASX FPH) designs, manufactures and markets medical devices and accessories for use in respiratory care, acute care, and the treatment of obstructive sleep apnoea. The company is the leading global supplier of humidification solutions in the hospital ICU and is also a major player in the obstructive sleep apnoea space. Headquartered in New Zealand, the company generates more than 99% of its sales from international markets.

Currently sitting at a market cap of NZD$7.88B, the Fisher & Paykel Healthcare share price rose 26.6% YoY from $4 to $13 FY12-18, with its profit rising 25.7% YoY from NZD$64M to NZD$201M. More impressively, FY12-18 Fisher & Paykel Healthcare beat the S&P 500 Healthcare Index, S&P/ASX 200 Healthcare Sector Index and Dow Jones World Healthcare Stocks Index. It also managed to improve its gross profit margin (48.2% to 65.7%), EBITDA margin (14% to 32.5%) and net income margin (13.7% to 20.9%) FY12-18. Fisher & Paykel Healthcare is currently trading at a P/E ratio of 58.

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Why Appen Shares (ASX APX) Is A Good Stock To Buy

by Henry Fung - Partner Managing Director Henry Fung - Partner Managing Director No Comments

Appen (ASX APX) is a global leader in developing high-quality, human-annotated datasets for machine learning and artificial intelligence. With over 20 years’ experience, expertise in more than 180 languages, and access to a crowd of over 1 million people, Appen partners with leading technology companies and government agencies to enhance their machine-learning-based products.

Over the last three years, Appen shares outperformed S&P/ASX 200 Information Technology Sector Index and S&P 500 Information Technology Index by over 750%. APX reported average revenue growth of 40% FY15-17, and revenue grew more than 100% in FY18.

Appen is one of the top shares to buy for 2019.

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Top 5 Best Shares To Buy Now On The ASX For 2019

by Henry Fung - Partner Managing Director Henry Fung - Partner Managing Director No Comments

The Australian stock market this year is looking much brighter than towards the end of last year. In our view, the Australian market over-reacted to a number of negative news articles and the rebound at the start of this year is investors becoming more rational and picking up stocks which were oversold on fear.

2019 is the year of opportunity. Even though growth around the world is slowing, monetary policy is starting to level off or ease again. This means that stocks will again be the asset to be in to take advantage of loose monetary policy.

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Nanosonics Shares (ASX NAN) – is it a stock to buy?

by Henry Fung - Partner Managing Director Henry Fung - Partner Managing Director No Comments

Nanosonics (ASX NAN) has a clear and reliable strategy for future development and a revolutionary monopolistic product (Trophon 2). The company also just achieved regulatory approvals in key markets and is selected by the guidelines in both Germany and France. The company also plans to rapidly expand into worldwide markets during FY19.

The company has developed a unique disinfection technology which is the first major innovation in High-Level Disinfection (HLD) for ultrasound probes. The products include Trophon machine, including Trophon EPR (first generation), Trophon2, consumables & accessories, and are sold in 3 different types of selling models.

The main product “Trophon” is an automated system that delivers HLD of ultrasound probes which is highly effective in killing bacteria, fungi, and viruses including the highly resistant HPV virus. North America is their most substantial market making up 89.62% of total revenue in FY18.

They also operate in some European and Asian countries, while still exploring chances to introduce their technology to other new countries. In addition, their successful business model, customer experience, product innovation, operational excellence, people engagement, and value creation, lay the foundation for success. Read more

Why Rural Funds Group Shares (ASX RFF) Is A Good Buy

by Henry Fung - Partner Managing Director Henry Fung - Partner Managing Director No Comments

Rural Funds Group shares (ASX RFF) is the only diversified agricultural Real Estate Investment Trust (REIT) in Australia which controls more than 40 properties across sectors including almond, cattle, poultry, and vineyard. It is one of the very few commercial entities who actively seeks to provide property leasing solutions to the Australian agricultural sector.

Its assets in the portfolio are leased to high-quality tenants including Treasury Wine Estates (TWE), Olam Orchards Australia (Olam), Select Harvest, RFM Almond Fund and RFM Poultry, with a Pro Forma weighted average lease expiry (WALE) at 12.3 years. Read more