ASX INVESTOR HOUR
Uncovering the best value stocks
SPEAKER: Roger Montgomery
LOCATION: Melbourne Investor Hour
DATE: 2 May 2012
DISCLAIMER: The following material was presented at ASX Investor Hour.
The views, opinions or recommendations of the presenters are solely their own and do not in any way
reflect the views, opinions, recommendations, of ASX Limited ABN 98 008 624 691 and its related
bodies corporate (“ASX”). Information and material presented at the seminar is for educational
purposes only and does not constitute financial product advice. Investors should obtain independent
advice from an Australian financial services licensee before making investment decisions. No
responsibility is accepted by ASX for any loss or damage arising in any way (including due to
negligence) from anyone acting or refraining from acting as a result of this information or material.
© Copyright 2012 ASX Operations Pty Limited ABN 42 004 523 782. All rights reserved 2012.
ROGER J. MONTGOMERY
Uncovering the best Value Stocks
Wednesday, May 5, 2012
Important Information
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This presentation does not constitute personal advice. It provides educational information and content only. All comments
made are for educational purposes only and should not be regarded as advice regarding the purchase or sale of securities,
options, futures or any other financial instrument of any kind. You should consult your professional, licensed, financial
advisor before making any financial or investment decisions.
The information contained in this presentation has been obtained from public sources that are believed to be accurate, but
the accuracy of this information has not been checked or verified. Except to the extent that liability cannot be excluded,
neither Roger Montgomery nor any associated entities, accept any liability for any loss or damage caused by any error in,
or omission from, this presentation. Past performance is not a reliable indicator of future performance. Forecasts used in
this presentation are intended as a guide only. They are predictive in character and as such may be affected by inaccurate
assumptions or by known or unknown risks and uncertainties and therefore may differ materially from results ultimately
achieved. Any information concerning taxation is general information and does not constitute advice. This presentation has
been prepared without taking account of your objectives, financial situation or needs and therefore you must consider its
appropriateness having regard to your objectives, financial situation and needs and consult your professional, licensed,
financial advisor.
Securities trading has large potential rewards but also large potential risk. You must be aware of the risks and be willing to
accept them in order to invest in securities markets. Don't trade with money you can't afford to lose. This presentation is
neither a solicitation nor an offer to Buy/Sell securities, options, futures or any other financial instrument of any kind. No
representation is being made that any person will or is likely to achieve profits or losses similar to those [if] discussed in
this presentation. The past performance of any methodology is not necessarily indicative of future results.
© Copyright 2012 Roger Montgomery and Skaffold
Thank You...
© Copyright 2012 Roger Montgomery and Skaffold
Today’s Agenda
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How I invest
How I find great value opportunities
Evaluating companies
Is anything cheap ‘right now’?
© Copyright 2012 Roger Montgomery and Skaffold
How I invest for MIM clients
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Companies not stocks, value not price.
We use Skaffold.com. You can too!
Quality first. Demonstrated track record.
Value second.
Only when all conditions are met do we invest
© Copyright 2012 Roger Montgomery and Skaffold
How I find great value
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A1, A2, A3, B1 or B2 only.
Little or no debt.
High ROE.
Significant discount to intrinsic value.
Rising expected intrinsic values (note: these can change).
Strong cash flow and position.
© Copyright 2012 Roger Montgomery and Skaffold
Evaluating Quality…
© Copyright 2012 Roger Montgomery and Skaffold
No more ploughing through a
decade of reports…
© Copyright 2012 Roger Montgomery and Skaffold
Quality and Value summary…
© Copyright 2012 Roger Montgomery and Skaffold
Ten years of Annual Reports
on screen: Capital History
© Copyright 2012 Roger Montgomery and Skaffold
Ten years of Annual Reports
on screen: Capital History
© Copyright 2012 Roger Montgomery and Skaffold
Evaluating Capital History
© Copyright 2012 Roger Montgomery and Skaffold
Strong Cash Flow? Yes.
© Copyright 2012 Roger Montgomery and Skaffold
Strong Cash Flow? No.
© Copyright 2012 Roger Montgomery and Skaffold
Is the Market cheap or
expensive?
© Copyright 2012 Roger Montgomery and Skaffold
Anything cheap? Evaluate
very stock instantly.
© Copyright 2012 Roger Montgomery and Skaffold
Saving time every day: Potential
Value?
QuickTime™ and a
decompressor
are needed to see this picture.
Thank You.
www.Skaffold.com
© Copyright 2012 Roger Montgomery and Skaffold
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