Australia’s Clime Investment Management – It’s Worth a Look

Over the last couple of years I’ve been to two seminars Clime Investment Management have held in Sydney. Roger Montgomery the Founder and MD of Clime did the presentation and was very impressive. He comes across as very professional and also well informed about the markets.

The Seminar was to promote their online StockVal software that helps you determine if a stock is a good investment or not. It basically follows the Buffet philosophy on assessing stock valuations.

Another important factor is they do not just throw all your money into stocks in one go if you place money with them. They only buy stocks that fit their analysis of what represents value. So unlike many fund managers a significant portion of your money may be in cash until they can find something wroth investing in.

Looking back at that Seminar I cannot fail to be impressed with what he said both formally in the seminar and in response to questions from the audience. I attended it on 8th November 2007, just before the credit crunch really took hold.

He used as his example ABC Learning. In brief he said the company was basically buying other companies to finance itself and its debt was too high. He then used Stockval to point out the shares were grossly overpriced. The conclusion was to NOT invest in ABC Learning even though it was a market favourite.

Fast forward to today with ABC Learning all but out of business with its share price only a few cents and an administrator selling off or closing ABC centres around Australia.

He went on to discuss the Westfarmer takeover of Coles. Put simply he said why would anyone pay $22 Billion for a company worth $8 Billion? Based on his analysis he said Wesfarmers would be a good buy at around $22 per share. They are currently $17.

I am sure the stock market crash has much to do with what has happened to both stocks but his analysis has credibility to me.

One thing he did say that was completely wrong though. He had invested in a company called Credit Corp and around that time it’s price had dropped almost overnight by 50%. As he always does he had spoken with the management team from the company before, during and after purchasing the stock for his company and clients.

He said he still believed in Credit Corp and that he expected it to recover. I think he was also a good friend of the MD and even went bike riding with him.

So….. When I left the seminar I thought I might get me some Credit Corp shares! Stupid. In January 2008 it fell completely out of bed going from about $5 to less than a dollar.

I don’t hold Roger responsible for this loss. I was speculating and lost a small amount of money trying to get something on the cheap. Ouch – I should have known better.

I think the StockVal software is impressive if you want to manage your own portfolio and now may be the time to start looking for value. But remember use money you will not need for a while, you may have to wait some time for a capital gain.

If you don’t want to invest yourself they do have a fund called the Value Growth Fund that follows their investment philosophy.

Take a look at some of the videos of comments he has on other companies too to judge for yourself.

I am not affiliated to Clime in any way financially or otherwise.

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