Coordinator’s Message

By Alison Harrington

After such a large Equities Bulletin last time we are giving you a break by having just one in depth article on a sector we all have share holdings in either directly or indirectly - the banks. John Abernethy from Clime Asset Management, in his in depth six page analysis, gives a clear outline on how banks work, how to analyse them, and how to expect them to respond to external forces. John outlines what he thinks are the five possible threats to banks on their profitability and ranks the big four on their return on equity.

I happened to have followed Clime from Roger Montgomery’s first IVEE calculator through to the detailed up to date fundamental analysis available through the purchasable Stock-Val programme. I have found them to be accurate, honest, thought provoking and educational. They constantly upgrade their knowledge base and correct the basis for their value calculations through back checking on their history.

This article is a good indicator of their standard of work. Companies like Stock Val, Stock Doctor, Eureka and authors such as Colin Nicholson, Alan Hull and many others are all important as they provide the investor a source of analysis separate from the brokers, managed funds and financial planners. The existence of these types of resources is invaluable to the share investor.

Alison Harrington is an AIA Councillor and Coordinator of the AIA Queensland Committee.

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