Colin Lea

Long/short equity, contrarian, investment advisor, portfolio strategy
Colin Lea
Long/short equity, contrarian, investment advisor, portfolio strategy
Contributor since: 2011
Company: Carey Group
Your articles along with DVKs have been instrumental in reshaping some of my perspectives on investing; the only downside is I wish SA and the DGI community had been so accessible 10 years ago! Thanks for sharing your portfolios Dave, and I look forward to reading your future articles.
Regards, Col
Thanks for the additional info on Veresen, Williams and Graincorp James; I'm sure readers will appreciate the leads to do their own due diligence.
Regards, Col
Appreciate the heads up on Australian Pipeline and Pembina Pipeline James, I'll be sure to take a look.
Regards, Col
Due diligence underpins any investment decision NV-Gary. While the observation is a general one, it is highlighted as an example to show the utility of infrastructure within a diversified portfolio, and even then due diligence is required to ensure the right infrastructure assets or funds are selected for the investors portfolio. Thanks for your comment.
Regards, Col
Thanks for the link AlphaHunta. For those who have a look at the AMP fund, you'll need to set your country once you get onto the AMP website, and then indicate if you are an individual investor or adviser.
Regards, Col
Always good to see articles where authors show the exposure in their own portfolios, it really helps readers to understand their line of thinking. Great update Bob, thanks for sharing.
Regards, Col
Couldn't agree more David about investing in what you understand. Another sage piece of advice given to me many years ago, is never bet more than you're willing to lose, which is a great saying that should give many a moment to pause before going 'all in' on that one sure fire tip. Thanks for another great article.
Regards, Col
Hi Bob,
Thanks for your observations and comments, and you have drawn out many of the relevant points regarding Australian banks for USA readers. Noting the liquidity issue from a major USA exchange perspective, it is worth putting it into perspective for North America based readers. By Market capitalization, Westpac bank is the 13th largest bank in the world and ANZ bank is the 18th largest bank in the world (and BNS which you mention is 24th).
Obviously for USA buyers, currency risk is an issue that has to be managed, and there are strategies to do so but this is not for this article. In relation to dividends and issues for overseas investors, I would direct readers to my foundation article on ANZ Bank in 2012 - there is a lot more detail on this including good explanations in the comments stream.
http://seekingalpha.co...
The following paragraph is one extract from that comments stream:
"In terms of the dividends paid, ANZ’s dividend is 100% fully franked. The dividend is paid to the overseas bank that sponsors the underlying share, who in turn pays the dividend distribution to the ADR holder. Taking into account the 30% company tax rate already paid on the dividend, it effectively means that there is no withholding tax payable on the dividend. Considering the international tax treaty between Australia and the United States, the owner of the ADR may have the opportunity to claim a 15% tax credit per share for the dividend on their individual income tax return; however I am not a CPA/CA and I would recommend investors seek professional advice particular to their own individual situation."
I plan on doing an article on Westpac soon which will address your last point then.
Thanks again for the comments Bob, as always it is appreciated.
Regards, Col
Good follow up to your original article Caiman, and nice to see the investment proposition put forward last time reaching fruition. Keep up the good work.
Regards, Col
Great series David, and a must read for younger investors. At 40 now, I wish I had access to this at 25 or 30, but SA wasn't around then. Keep the articles coming and thanks for writing.
Regards, Col
The crux of the analysis for me is why a company with a sizable market share of 20% has dropped to five year lows, which I think your article explains. Perhaps in a follow up piece you could focus on why you think the upside exists that you believe; what is management's plan and do you think it is achievable. Thanks for writing.
Regards, Col
Buy on value and price becomes irrelevant for longer term investors. Great article Chuck and looking forward to part 2.
Regards, Col
Excellent piece Eli, and I think the relatively unedited comments trail on each article is what enhances the value of SA even further. Keep up the good work.
Regards, Col
A good article Bob, one which reflects the direction Mackenzie and Walsh are steering their respective companies. Good leadership = good management = good results. Long BHP.
Cheers, Col
Hi Heather,
Did you back your position and take a position in BHP, and what are your thoughts looking forward based on recent half year results? Keen to get an American's perspective on the 'Big Australian'.
Cheers, Col
I haven't followed Bitcoin in any detail as yet, though coincidentally there was an interesting piece in today's Financial Times on Douglas Jackson, the founder of e-Gold. It's worth a read for backers of Bitcoin and associated companies operating in this space.
http://on.ft.com/1b2bRmt
Regards, Col
The rationale for using C was consistency, as I had used it last time, and I selected it on a comparative basis when considering top 4 US banks by market cap compared to top 4 US banks by market cap. Obviously twelve months on markets have moved, and a comparative basis WFC would be more suited to a comparison to CBA or WBC, and my intention is to utilize Wells Fargo as a comparative peer against Westpac Bank in an upcoming article.
To be fair, more time permitting I would have liked to focus more time on Citigroup's relative performance, and again I may revisit in a future focus piece. Thanks for your comments, appreciate it.
Regards, Col
I used to watch a real estate show about Canada when I was living in the USA Bob, which gave me a few issues to ponder about the pricing of the market there, and the value behind property pricing. After numerous trips to Canada over two years I gained an appreciation for the market and supply and demand issues driving the market there, and it provided a lot of context, which I would otherwise not have had. I agree with you that there are many commonalities between the Australian and Canadian systems and markets. As always, thanks for the comments and perspective Bob.
Regards, Col
Here is the ADR Link which discusses the split that 'Bikerguy' refers to. I'll look to update the table in future articles.
http://bit.ly/17GGLlS
Regards, Col
Here is the link from ANZ which covers the ADR split as commented by 'Bikerguy'. http://bit.ly/17GGLlS
I'll look to update this table in future articles to accommodate the split.
Regards, Col
We are already seeing the appetite for self managed super funds (SMSF) to consider the inclusion of property in their funds, some of it driven by property spruikers, real estate agents and property developers trying to skirt the regulations that surround SMSF. The government and ASIC are already pursuing the correction of this and I expect we will see some test cases come to investigation soon.
The remaining themes around the property market that you raise are valid, and I currently see two markets in play here; the first being the lead market recovery around housing driven by Sydney and Melbourne (and to a lesser extent Brisbane) which attract the media attention and reader focus. The second in the lagging market or flat market in regional Australia, which at present I don't believe is correlated to the south east coast cyclical recovery. These are themes I would like to revisit in more detail when I write an article reviewing Westpac Bank, which has the greatest exposure to the Sydney and New South Wales property markets out of the Big 4 Banks.
Thanks for the observations and discussion points, it's good to be back; time is the only ingredient that precludes me being back more frequently!
Salud, Col
Thanks 'Bikerguy', it's nearing midnight down-under so I'll look into the split tomorrow. Thanks for your observation and comment.
Regards, Col
Thanks for the follow up epeon, appreciate it.
Regards, Col
How does hedging work here? Long WTW, Short MCD?
Seriously though, excellent article and an enjoyable read.
Regards, Col
Nice point of view 'samadams', thanks for reading.
Regards, Col
KO has been a stable choice for DRIP investors. Thanks for your comment Edward.
Regards, Col
A typo, NV Gary, I'll have it fixed. The Coca Cola Amatil high should read $15.40 my apologies for the oversight. For Coca Cola Amatil it is undervalued when you consider it is delivering a ROE four times greater than the sector and three times greater than the market. Longer term discounting in Australia is not sustainable for either Coke or Pepsi, nor desirable by management, and when this evens out it will flow through to increased sales and revenue for Coca Cola Amatil.
Regards, Col
Absolutely purely based on opinion and subjective as well - I just don't get the flavor of Pepsi, too sweet for me, and Pepsi Max is ok... from a price point of view. But its a good point you raise 'Liquid DRIPs' - much like being Long Apple because you rate their brand and product as an investment, yet preferring Sony because you actually own (and prefer) a Sony Android Smartphone ;-)
Hope you enjoyed the article and thanks for your comments.
Regards, Col
In my case I just happen to prefer the taste of Coke Zero, and Diet Coke (in that order), over and above the taste of Coke. But I think the reason for new product directions comes back to old adage 'diversify or die'. Thanks for your comments 'Waxpass'.
Regards, Col
Valid points 'Desmodos' with a long term point of view, appreciate it.
Regards, Col
Great brand = great company = great stock. Thanks 'fiveoh'.
Regards, Col
Quality management and strong leadership underpins the long term sustainability of the brand. Thanks for raising 'CassandraSees' and appreciate the comments on management 'slam stocks', appreciate your perspective.
Regards, Col