Stand still in the advertising and marketing space and you’ll be left behind.
Over the past quarter-century, the industry landscape has undergone a transformative journey, driven by the seismic shift from paper-based advertising to the digital realm. The advent of the internet, social media, and advanced technology has brought about a revolution in the way businesses connect with their audiences. In this dynamic era of ever-evolving communication channels, understanding the interplay between traditional print and the digital frontier is essential. The stars are aligning for a golden era in private credit.
The recent flurry of interest rate hikes across the globe has returned fixed income to the fore as investors earn meaningful income without needing to take on disproportionate risk. Private credit specifically has acted as a natural hedge against both inflation and higher rates, with most loans originating on floating-rate terms. In fact, private credit today is offering equity-like returns with significantly less risk. As a result, increasing numbers of investors are reallocating their portfolios towards private credit. It is no secret that infrastructure in the United States has long been in need of upgrading and repair. There are countless images and videos showing crumbling highways, overrun and outdated airports, and communities lacking adequate Internet connections. It is also no secret that the Biden administration has made infrastructure spending a statement of its tenure. Between the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA), the 117th Congress has committed US$1.25 trillion across the transportation, energy, water resources, and broadband sectors for the next five to 10 years.
In 2002 Wimbledon officials took out pandemic insurance at $3.2 million a year following the outbreak of SARS.
It wasn’t until almost 20 years later when a 1 in 100 year pandemic struck that the move paid off. Covid-19 forced the All England Lawn Tennis Club to cancel the tournament for the first time since WWII and was due to lose around $500 million in revenue. Thanks to the foresight to insure against such an event Wimbeldon recovered a large portion of the loss despite the fact a ball wasn’t served. The ASX has been red hot for takeovers in recent months, as we have highlighted in several articles covering the reasons why takeovers occur, the different strategies that companies employ for takeovers, and several specific takeovers of interest. We also recently released a white paper outlining several ASX companies that we believe are prime candidates for a future acquisition given their strategic assets and current valuation.
SRG Global (ASX: SRG) is an ASX-listed diversified industrial services company, standing at the forefront of innovation with a mission to simplify the complex in the asset lifecycle.
The company operates across diverse market sectors and geographies and over the last few years has undergone a strategic transformation to progress towards an earning profile offering more than two-thirds annuity/recurring earnings through its maintenance work. This shift positions the company for sustainable growth while also returning capital to shareholders through its dividend strategy. So what is SRG Global? In our previous article, we delved deep into the allure of corporate takeovers, highlighting how buyers—both strategic and financial—are perpetually hunting for golden opportunities from their competitors, whether that's acquiring a dynamic innovation, a key division, or even an entire company. As we pivot to dissect whole company transactions, several compelling reasons emerge for why specific businesses become targets. Let's unpack these strategies.
Buying bargains or check out traps? Is it time to consider retail stocks?
There have been plenty of reasons to avoid the consumer discretionary space over the last 12 to 18 months. Does this provide an opportunity? Australian investors are heavily focused on dividends (to the point of being obsessed). This is understandable. The dividend imputation system in Australia ensures that investors receive preferential tax treatment on the dividends they receive from companies they own shares in. This means that investors typically receive a credit for the income tax paid by the corporation, which is 30% for most entities listed on the ASX. Investors may even receive a refund equal to this tax credit if they do not generate sufficient taxable income, such as many self-funded retirees.
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TAMIM Asset Management provides general information to help you understand our investment approach. Any financial information we provide is not advice, has not considered your personal circumstances and may not be suitable for you.
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