Case Study Part 15: ASXFY Case Study Recap

This series is an ongoing live case study series.

To see the earlier posts in this series, focused so far on Filipino companies, go here.

To learn how I find and select these companies, go here.

To watch Part 1 of us going through the financial statements of ASXFY, go here.

To watch the prior videos on ASXFY, go here.

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So far in this series, you’ve learned how I find and then select companies at the preliminary stage of analysis.

I then detailed why I selected only 3 of the 44 Filipino companies to put on my watch list.

Detailed each of these 3 companies.

We then recapped the entire series which is linked above.

Then we got to our first Australian company, ASXFY – these posts are linked above.

In that post, I told you why the company looked great on a preliminary basis – but not only that but that it looks to be about fairly valued now on a relative basis.

Which frankly was shocking to me, considering this company’s insanely high margins and cash flow production.

Oh and because world stock markets are still at, or near all-time high valuations.

And also because of this last point, I haven’t found a new potential investment in 3.5 years.

This week, I want to recap everything we’ve talked about and found out about ASX Ltd up to this point in researching this company.

ASX Ltd (ASXFY)

Let’s continue finding out…

So far we’ve already done 7 posts/videos on just ASX Ltd and we’ve already covered a lot of information about them.

Because of this, before we get to the just-released 2018 annual report I wanted to recap things and tell you how my evaluation of ASX stands as of today.

In Part 1 of the ASX Case Study, I did a full 28-minute long preliminary analysis of the company.

In this analysis, I went slower than I normally do so I could explain things better since this looks like a great potential investment. What may turn out to be my first new investment in 3.5 years.

In that video, I showed you what its margins were, what they meant, why they’re important, and told you why on a preliminary basis ASXFY looks like a potentially great investment.

In Part 2 of the ASX Case Study, I showed you which financials I download and read after a company passes my preliminary analysis.

In Part 3 of the ASX Case Study, we began digging into the financials for ASX. In this section, I also told you why I said “man this just pisses me off” about something I found in the financial report.

In Part 4 of the ASX Case Study, I showed you something I’d never seen before in any other financial statement.

In Part 5 of the ASX Case Study, we went over their complicated executive and director pay structure outlined in their annual report.

In Part 6 of the ASX Case Study, I told you 8 words that are ultra-important in EVERY financial you’ll ever read, and also explained the nuances to these 8 words and what they mean in a real-world sense.

In Part 7 of the ASX Case Study, we finalized the going over the 2017 annual report.

So you’re probably wondering – what do I think of ASX at this point?

At this point, I still love it.

Even though there are some things that annoy me about how the company operates – specifically how much they pay their executives and directors – nothing I’ve seen up to this point is a major red flag.

The company looks like it’s still a potentially great investment that produces a ton of cash.

The major issue we’re running into now though is that since ASX released its 2018 annual report, its shares have skyrocketed.

This sometimes happens when you evaluate a company.

Let it happen.

Do not rush through analyzing an investment.

It’s better to take your time and analyze a company fully and miss out than to rush and make a major mistake which will cost you money.

But for now, next week we’ll begin to get going through its 2018 annual report to continue learning about the company and figure out if it’s still undervalued.

If you’re following along, here are my financial notes on ASX up to now.

ASXFY Financial Notes – INCL Part 5

If you have any questions or comments about anything in the video above or this ongoing series, let me know.

I’m going to teach as much as possible in this series and in these videos, so the more questions and comments we have, the more you’ll learn. So please put any comments and questions in the comments section below this post.

Seriously – and I say this to all my coaching and training clients as well.

Even if it’s a minor question, you think maybe stupid, ask it.

If you’re investing real-world money, a ‘stupid question’ can cost you real money and frustration, so don’t hesitate to ask.

And remember…

Now that we’ve found a company that looks like a potentially great investment now, if you want to see the future videos about this company and learn about us potentially investing in it, first you need to sign up for the Training Vault.

We’ll be adding these videos to this service first – sometimes weeks in advance – of the blog and other social media.

To mark this occasion, we’ve also dropped the cost of the Training Vault to as little as $19 a month, for life, or up to 81% off its normal price.

I’ve also added more bonuses like free access to $1,500 worth of courses, free training sessions, and more, to help you get into this great program as well.

Because we’ve now found a potential investment, we’re going to research further, this offer will only last for a limited time so make sure to take advantage before it’s gone.

Go here to get the Training Vault now.

P.S. Get my acclaimed value investing education book How to Value Invest here, for free.