Skaffold’s 2013 top five stocks outperform Index by 13%
9 October 2013: The top five stocks identified by online stock research application company, Skaffold, have achieved a stand-out performance over the past nine months, delivering a return of 28.3%. In comparison, during the same period, the Australian Stock Exchange’s All Ordinaries Accumulation Index achieved a return of 15.5%.
Including capital growth and dividends, $50,000 invested equally in Cedar Wood Properties (CWP), Clough (CLO), Decmil Group (DCG), Flight Centre (FLT) and Mastermyne (MYE), between 11 January 2013 and close of trading on 23 September 2013, would have returned $64,147. With the addition of franking credits, this represents an investment return of 29.7%.
Skaffold is a state-of-the-art online stock research application that interprets key financials and forecasts into image-rich visuals. The automated application is updated daily using information sourced from top-tier financial institutions. Launched in November 2011 by fund manager, Roger Montgomery, portfolio manager Russell Muldoon, general manager Chris Batchelor CFA, and marketer Vanessa Gilbert, Skaffold is designed to help simplify the share market investing process by enabling users to spend less time on research and market analysis.
Chris Batchelor said finding value in the market was a difficult this year, but the stock research application identifed five top performing stocks for 2013.
“During the past nine months, three of our top stocks have seen their share price rise while two have declined. The stellar performer was Flight Centre, which rose by 71 percent, closely followed by Cedar Wood Properties (up 54 percent) and Clough, which increased 46 percent. In comparison, Decmil Group saw its share price fall by 12 percent and Mastermyne’s decreased by 34 percent.”
Using the ‘Skaffold Score’ rating system, combined with Skaffold’s analyses of each company’s intrinsic value, future forecast value growth, forecast yield, future earnings per share and the highest return on equity, Flight Centre was originally rated A1, with Cedar Wood Properties, Decmil Group, Clough, and Mastermyne all rated A2.
“Based on the 2013 full financial year results, Flight Centre has retained its premium A1 rating, while Cedar Wood Properties and Decmil Group have been adjusted down from A2 to A3. Clough and Mastermyne have remained stable at A2.”
Mr Batchelor said identifying value in current markets is increasingly difficult, but Skaffold regularly received feedback that the tool was helping its clients reach their financial goals.
“I joined Skaffold in November 2011 to help manage my investment portfolio as part of my Self-Managed Superannuation Fund,” said Lindsay Brynes, one of Skaffold’s Founding Members. “I find Skaffold complements the excellent support I get from my full service broker as it allows me to identify opportunities outside of their research scope.
“A good example of this is M2 Telecommunications and Flight Centre. I purchased these shares when they were between 20 to 30 percent below their intrinsic value just over two years ago. Since then they have added $60,000 in value excluding the fully franked dividends. I continue to hold Flight Centre today because the shares have doubled in value since I first purchased them.
“This doesn’t mean I only look at companies that are below or around their intrinsic value. Rather, by using Skaffold, I can more critically analyse broker blended valuations to justify their inclusion in my portfolio,” said Mr Byrne.
“Skaffold’s integrity in the calculation of intrinsic value is very helpful in acting as a tool to support my investing decisions with the benefit of consensus forecasts.”