Principal & Portfolio Manager at Cambridge Global Asset Management
Member since: Aug '16 · 64 Opinions
Editor's Note: The Global Equities Description is focused on Small Caps which Greg considers to have a market cap between $500 million and $5 billion, The dispersion between between small and large caps is getting larger with some large caps reaching the trillion dollar mark and NVIDIA now having a market cap of $4 trillion.
He calls this year's volatile market ideal hunting grounds and doesn't necessarily see volatility as risk. He likes volatility and pessimism. and doesn't see pessimism in large caps. Some of the small caps don't have analyst coverage. Equities that they buy have between 0 and 6/7 analysts covering them.
He looks for a long term management track record of success. Companies should be cash generative and operate business that you can understand. He doesn't like debt.
It is the largest LBO in Australia to go down during the financial crisis. It has a very high payout ratio with a 7% yield and too much debt. The business of broadcast outlets is a tough one because there is lots of inflation. It is hard to invest for growth when a company is paying most of its cash intake in dividends.
He has lots of respect for management and has made money in their prior ventures. It is a proven and ambitious team. It is interesting because it is growing revenue and production by 200% as well as cash flow. Has under two terms of debt. He likes their longer term development plan. They have an interesting and smart view of infrastructure. They are not paying out cash flow in dividends but are using it for developing per share growth. Ultimately they don't need capital markets.
If you are looking for exposure to LNG, Tourmaline would be good.