FY 2026 Nuggets and Stinkers and July 2026 – End of Month Update

‘We must accept finite disappointment, but we must never lose infinite hope.’
Martin Luther King

Slack Investor experienced plenty of disappointment this financial year. On reflection, most of it was self induced. He was dazzled by some of the growth projections that he found on Market Screener – and forgetting that these are just analyst forecasts – and sometimes not achieved. As a result, he got involved with too many early stage companies that experienced regulatory failures – or just fell short of expectations. This year, there was also the AI scare that put the shivers up owners of software and healthcare stocks. These sectors could be vulnerable to cheaper AI interventions that might affect future incomes.

This post is just one part of the annual review of the Slack Portfolio. The percentage yearly returns quoted in this post include costs (brokerage) and dividends but, the returns are before tax. These raw figures can then be compared with other investment returns.

Slack Investor uses the incredibly useful Market Screener to analyze the financial data from each company. This excellent site allows free access (up to a daily limit) to analysts’ data. Once you register with an email address on their site, you can use the financials tab to get information for each stock.

Slack Investor uses forward-looking numbers – so, sometimes, things can go wrong. He extracted the predicted 2028 Price/Earnings (PE) Ratio and Return on Equity (ROE) and average forecast revenue growth for the financial years 2027 and 2028. He usually requires that the forecast Earnings Per Share (EPS ) growth will be greater than 15%. He then condenses all this information into one number, the Slack Ratio. This is the ratio of forecast ROE/forecast PE.

The Slack Ratio, is a way to make things easy for Slack Investor’s limited brain. This ratio is still ‘experimental’ and used to differentiate between stocks. The higher Slack Ratio, the better. Slack Investor generally likes the Slack Ratio to be above 0.7.

Slack Investor Stinkers – FY 2026

Financial year 2026 was again big on volatilty. Slack Investor knows that stinkers are a part of the game, even in good years. Unfortunately, he managed to attach himself to a multitude of stinkers this year. Slack Investor managed to be in some unfashionable sectors – and, in hindsight, also made some bad individual company selections. Again, this is just part of the game.

Botanix Pharma (BOT) -60%

(BOT – Forecast 2028: PE 3, ROE 28%, Av. Growth 30+%, Slack Ratio 9.3). Slack Investor entered the murky and volatile world of Biotechs with a small stake (0.2% of portfolio) in this Australia-based dermatology company. Their topical gel (Sofdra) is used to treat excessive underarm sweat. This has to be Slack Investor’s weirdest purchase – and he was sold on the ‘sizzle’, not the steak. The company is ‘expected’ to be profitable in 2028. However, the market has some doubts about this. Slack Investor bought on the good numbers (above) at $0.35, sold in November 2025 at $0.14. Latest price $0.02 – A humiliation!–and a lesson in getting involved with speculative stocks.

CSL (CSL) -50%

(CSL – Forecast 2028: PE 12, ROE 18%, Av. Growth 30+%, Slack Ratio 1.5). CSL is a big holding for Slack Investor (6.3 % of portfolio). CSL was a Stinker in FY 2025, but they have continued to spend on Research & Product Development at levels around 10% of revenue. This should be a good thing for future earnings. However, a series of earnings downgrades and management changes have tested market confidence in the company. Slack Investor realizes that CSL is not the growth machine that it once was – but it still is one of the world’s leading biotechnology companies. At this stage, he is sticking with CSL and is buoyed by some recent price rises –but he feels that his loyalty has not been rewarded and would have no problems in selling his stake if a better opportunity presented.

REA Group (REA) -41%

(REA – Forecast 2028: PE 24, ROE 33%, Av. Growth 15+%, Slack Ratio 1.3). This real estate powerhouse has been part of the Slack Portfolio for a long time and it too might be losing its mojo as a growth superstar. Property is cyclic in nature and this FY there has been a softening in property listings and therefore revenue. The market quickly bailed out. Slack Investor has the long view on this one. Future numbers (above) still look reasonable and he is prepared to ride this one out.

Telix Pharmaceutical (TLX) -38%

(TLX – Forecast 2028: PE 32, ROE 9%, Av. Growth 30+%, Slack Factor 0.3). This company develops and markets radio-pharmaceutical products that are used to treat cancers in a precise fashion. TLX is less than 1% of the Slack portfolio and is his most speculative stock as the company is not predicted to be profitable till 2027. FY 2026 has been tough on Telix with some regulatory hurdles and some other trouble with US authorities. These problems seem to be mosly overcome and the share price has risen – but there is still some risk. The ROE is low, but the projected growth is over 100%. If the positive momentum continues, Slack Investor will add to his position.

Cochlear (COH) -35%

(COH – Forecast 2028: PE 20, ROE 18%, Av. Growth 25%, Slack Ratio 0.9). COH is a great Australian company but it has had a shocker of a year with a series of earnings downgrades. In a counter-cyclic move, Slack Investor bought 5 months ago at about $190 after the first downgrade announcement. Mistake! These downgrades seem to usually occur in bunches. At the current price of $120, it seems good value. Will stick with this one and try to learn from this error.

Wisetech Global (WTC) -34%

(WTC – Forecast 2028: PE 18, ROE 17%, Av. Growth 30+%, Slack Ratio 0.9). WTC has great logistics software that is the industry standard. The underlying business is solid and was unfairly dumped during the AI scare. However, the real problems have been with the scandals associated with the founder and executive chairman Richard White. Mr White has recently resigned and this has triggered a share price recovery. The recovery is going well and Slack Investor is considering adding to his share parcel in WTC.

Slack Investor also went backwards with many of his other holdings. Car Group (CAR) -29%; Technology One (TNE) -27%, though it was a nugget last FY +124%; Plenti Group (PLT) -24% – What was Slack Investor thinking?

Slack Investor Nuggets – FY 2026

Nuggets are a blessing in any portfolio. Fortunately, this Financial Year, there were some bewdies! Slack Investor continues to invest in high Return on Equity (ROE) companies with a track record of increasing earnings. If expectations are met, companies with these qualities sometimes behave as ‘golden nuggets’.

Codan (CDA) +122%

(CDA – Forecast 2028: PE 32, ROE 28%, Av. Growth 15%, Slack Ratio 0.9). Codan is a technology company that specializes in communications and metal detecting. What a great company – also a nugget in FY 2025(+75%)! It is one of Slack Investor’s core holdings. CDA has had a checkered past – a nugget in FY 2021 (+161%), a stinker in FY 2022 (-58%), a nugget in 2024 (+54%), and again a nugget (+75%) in 2025. What has kept me in the stock was its low debt, (generally) increasing earnings, and the high profitability (ROE 28%).

SKS Technologies (SKS) +73%

(SKS – Forecast 2028: PE 15, ROE 63%, Av. Growth 30+%, Slack Ratio 4.2). A recent purchase, SKS is an electrical and networking service company that delivers ‘advanced technology solutions’. It has recently landed big contracts for data centres and has a further upstream tender pipeline of $1.25B AUD. These ‘contract for income’ companies need constant surveillance but Slack Investor was at a Wilson Asset Management seminar this year and a speaker impressed him with his ‘Picks and Shovels’ approach to investing in the new wave of AI and Large Language Models (LLM’s) … and he did, and would like to buy more!

RPM Global Holdings (RPM) +71%

(RPM – Forecast 2027: PE 154, ROE 53%, Av. Growth 38%, Slack Factor 13). RPM is a mining services provider that had a happy association with Slack Investor. There was a takeover early this year by the NYSE-listed big company – Caterpillar. Slack Investor had to bow out – but with money in his pocket!

Alphabet (GOOGL:NASDAQ) +36%

(GOOGL– Forecast 2028: PE 20, ROE 22%, Av. Growth 25%, Slack Ratio 1.1). What a powerhouse. Alphabet continues to have high profitability (ROE 22%). There are some concerns over reduced earnings in 2027, AI spend, and competition – but his everywhere company keeps surging ahead. Happy Owner.

Vanguard Asia (Ex-Japan) ETF (VAE) +30%

(VAE – Market Screener Data unavailable. VAE is one of Slack Investor’s core holdings – providing exposure to Asian Markets. After a lacklustre few years, it has finally started to provide the growth from Asia that Slack Investor envisaged. A Long-term hold.

Some honourable mentions to some top results this year that didn’t quite make the nuggets. Megaport (MP1)+27% and Coles (COL) +19%. COL is now, not in the Slack Portfolio, but in his Stable Income portfolio.

July 2026 – end of Month Update

The new financial year has started off positively for the Australian and UK markets. The ASX 200 +2.3%; FTSE 100 +3.5%. The S&P 500 is taking a well-earned breather and has had a flat month (-0.1%). He remains IN for all index positions.

All Index pages (ASX Index, UK Index, US Index) and charts have been updated to reflect the monthly changes.

Slack Greetings from Cambridge, UK – A busy day punting on the River Cam.

Pre-Travel Check List – June 2026 End of Month Update

One of the pleasures of retirement is the joy of travel and Slack Investor is about to head off to Brittany and the UK. He is fortunate that Ms Slack Investor has many skills in the travel booking department – and he doesn’t have to worry about accommodation, flights, or train and ferry tickets. However, there are some responsibilities that have landed on Slack Investor’s desk. Any products mentioned are not sponsored – but just things that he likes to use.

Insurance

Fortunately, Slack Investor has a Commonwealth Bank Ultimate Rewards credit card that offers free overseas travel insurance. This Cover-More policy requires a card spend of $500 on travel and has an excess of $500. Important Note: If you think you would like a credit card for retirement – get yourself sorted out while you are still working. Getting the card that you want is increasingly difficult when you are retired – and only relying on superannuation income.

Travel Money

The Commonwealth Bank Ultimate Rewards credit card has no international transaction fees and uses the Mastercard default rate in working out foreign exchange rates. So, he will use this card for most swipe transactions. His money cards are also loaded into his phone wallet.

For cash, he avoids the horrendous cash advance fees on credit cards by using his Macquarie Bank Debit Card. This exceptional card offers no international transaction fees and uses the Mastercard FX swap rate. Some overseas ATM’s will have a usage fee. However, by using only major banks in overseas countries, Slack Investor has mostly avoided these.

Slack Investor has much praise for his Macquarie Bank Transaction account. This account is the best that Slack investor has ever had. Features include:

No Macquarie fees when using overseas.
No Fees and 2.75% interest on your domestic transaction account.
Great app and transaction control.
Linked Savings account offers 5.0% interest.

Phones and Sims

One day there will be a time when you can just have just one sim in your phone and you can roam the world using that sim at a reasonable cost. It is not this day as yet. Currently, the best option is to get another sim for overseas travel. This can cause some complications with two factor authentication if finance institutions wanting to SMS your Australian sim. In most cases, you can work around this by communicating through the finance app. As a last resort, just swap back the Australian sim temporarily for any vital sms communication.

For older phones that can only use a physical sim, it is cheapest to pick up a local sim at the airport, or a convenience store, when you arrive. If you don’t want this hassle and have time for the Australian company TravelKon to post you a sim from Perth – they have 30 day 20GB physical Europe sims for $28.

If your phone can handle an e-sim, this is the best way to go. Slack Investor found the best deals for multiple country Europe/UK were through E-tel Mobile and TravelKon.

The cheapest e-sim options were for a data only plan – and any required phone calls can be made through a VOIP application like WhatsApp. Slack Investor would use Wi-Fi at his accommodation for any big data requirements. For maps and searches during the day, 10GB for 30 days would be plenty. E-tel has a 30 day 10GB Europe plan for $27.90 AUD. TravelKon have a sale on at the moment – a 30 day 10GB Europe plan for $20.30 AUD. These e-sims can be set up before leaving Australia – and will automatically activate on arrival in Europe.

Finding my phone

Slack Investor should be more vigilant … and will try to be better. However, he has a Samsung Android phone and is prone to leaving it on tables etc. He often finds his phone using his google account. Just put ‘find my phone’ in any browser to locate the google find hub. You can ring your phone or find it on a map or lock it from this site once you have signed in to this site.

It occurred to me that this would not be as easy in a far off land. For an extra layer of security, both Ms Slack Investor and myself have shared locations with the Samsung Find app. If either of us leaves our phones somewhere, we should be able to locate it.

For those in iPhone world, I am sure there are similar Apps. A company that Slack Investor recently bought, Life360, has a family location app with a free tier.

Other Travel Considerations

Slack Investor likes to travel light and tries to do a lot of walking on his breaks. His Osprey Farpoint 40-litre Travel Pack combined with packing cubes for internal organization has proved to be a reliable companion. The pack is sized for cabin baggage and can be found for $284.29 AUD. Ms Slack Investor uses the similar 38-litre Kathmandu Litehaul (on special at the moment for $179.98). Depending on the airline cabin bag policy, the weight varies between 7 and 10Kg.

A special mention to my compact travel power adapter available e-bay Australia for $20.98 AUD and my portable clothesline (available under $10). For the lightweight traveller, hand washing is crucial and a clothes line is essential. So is 4m of extra cord to help tie up the line in tricky layouts. For emergencies, a hotel hair dryer is a handy sock drying tool.

June 2026 – End of Month Update

The end of another Financial Year. Slack investor will summarize the year in the next post. The S&P 500 (-0.3%) and the FTSE 100 (+0.1%) took a well-earned ‘breather’. The ASX 200 returned a solid 1.5% for the month.

Slack Investor remains IN for all markets.

All Index pages and charts have been updated to reflect the monthly changes – (ASX Index, UK Index, US Index).

The quarterly updates showing the current holdings and cash position of the Slack Portfolio have also been completed.

Nice Shorts … and May 2026 – (Early) End of Month Update

Slack Investor is a big fan of the colourful short for aquatic activities and, as a result, Ms Slack Investor is glad that winter is approaching. However, he is not generally a fan of investing in a shorted stock. He has learned this lesson the hard way – on a few prevous occasions.

Short selling is a technique used to profit from a fall in the price of a stock. It is a method where you sell first, and buy later – if the price of the stock drops then you are selling for a higher price than you are buying resulting in a profit. – Shortman

A company might be on the short selling list because there may be doubts about the underlying business. Or, more commonly, the business is OK but the share price has outpaced earnings – the price has gone up well ahead of earnings and the current Price/Earnings (PE) ratio is way too high.

Luckily, there are websites that track this short selling activity on the ASX. Shortman is one of the most comprehensive. Slack Investor did have a dabble into the short market in his early investment life but he thought it wasn’t a natural fit for his game – as he is an eternal optimist.

Also, the ‘short’ market can be manipulated. There is evidence that large US hedge funds have previously spread bad news about some ASX stocks in order to use shorts to profit from falling prices. As a result, Slack Investor now sticks to the ‘long’ market where he buys stocks and hope they go UP!

When a stock has a high short interest, it means a meaningful portion of the available float has been borrowed and sold by traders betting the share price will fall. In simple terms, it is the market’s aggregate bearish view expressed with real money on the line. – _{StocksDownUnder}

Most of the time, it is a good idea to avoid stocks that are heavily shorted – where a good percentage of the market thinks these stocks are going down in price. It usually doesn’t make much sense to swim against the current. Ideally, what you really want, is to own a company where others in the market also want to invest. This sets up a scenario where the stock price rises.

Top Shorted Stocks

At the 26th May 2026, the top 15 shorted stocks on the ASX by aggregate percentage with their weekly change in shorting interest. The short list data is prepared by the ASX and has a 5-day delay – shortman.com.au

Slack Investor has a small position in Telix Pharmaceuticals (TLX) (~1% of investment portfolio). Alarmingly, 14.83% of the stock on issue is owned by short sellers. He neglected to look the stock up on Shortman prior to purchase. This could be a mistake!

Therefore, this play carries quite a bit of risk. Slack Investor was carried away with the power of the ‘Wedgie’. The short sellers are betting that future revenue predictions where Market Screener shows the PE declining from its current astronomical value of 750 in 2026 to a manageble 33 in 2028 – will not happen!

On the plus side, TLX on track to meet 2026 revenue forecasts and the shorts have started to decline (weekly change down 0.28%). At this stage, he is optimistic that the tide may turn. But, if the price drops sharply at one of the weekend reviews, Slack Investor will have to bail and hand another victory to those pesky ‘shorters’.

May 2026 – (Early) End of Month Update

Slack Investor has gone early for this post as he is off to his old ‘stomping ground’, Far North Queensland, for a few weeks. He will be taking his colourful shorts and remains IN for Australian index shares, the US Index S&P 500 and the FTSE 100.

The ASX 200 (-0.2%) was flat so far this month. The FTSE 100 (+1.1%) and the S&P 500 (+4.3%) have had a positive month so far. The US Index (S&P 500) has been so bouyant that it needed its stop loss moved upwards. Prices were 15% above the previous value. The new US stop loss was difficult to find and Slack investor had to go to the daily charts to find a sensible low point to put the stop loss. He moved it up to the new ‘higher low’ of 7046.

All Index pages and charts have been updated to reflect the monthly changes – (ASX Index, UK Index, US Index).

The Super Squeeze – March 2026 End of Month Update

**Woman Giving Money to a Servant-Girl** (c. 1668–1672) (Cropped) – Pieter de Hooch.

In times of market turmoil, Slack Investor likes to take his mind off the day-to-day fluctuations of his share investments and concentrate on things that he knows that work. He knows that the stock market is volatile. He knows that the stock market provides excellent returns to the long-term investor. He knows that his Stable Income pile will fund his needs.

For a mood lift, he just taps into his inner Julie Andrews and simply remembers My Favourite Things. These favourite things include long-term investing and Superannuation.

Compulsory Pay Day Super

Compulsory Super was brought into Australia way back in 1992 by the force of nature Paul Keating. Every time that there is a proposed change to the structure of Superannuation, Slack Investor steels himself for the worst.

However, to almost universal acclaim, there was some good news in Superannuation circles with the introduction of pay day Super. From 1 July 2026, employer paid Super must be transferred on the same schedule as an employee’s pay cycle rather than quarterly. Previously, the rules allowed for the Super Guarantee contribution to be paid in lump sums every 3 months. The new rules are expected to benefit lower-income workers under casual, and part-time arrangements. Their Super will be deposited into their accounts and earning money straight away.

‘By switching to payday super, a 25-year-old median income earner currently receiving their super quarterly and wages fortnightly could be around $6,000 or 1.5% better off at retirement.’ _{– Stephen Jones , Assistant Treasurer}

Bewdy … we can relax now and let the compulsory 12% Super guarantee fund our comfortable retirement … Not so fast!

The ‘Voice of Super’ outlines the ‘Squeeze’

The Association of Superannuation Funds of Australia (ASFA) update their Retirement standard every quarter. They follow the effects of household costs on a retirement budget for both a comfortable and a modest retirement. ASFA define a ‘comfortable’ retirement where the budget allows for Occasional restaurant meals, take-away coffee and a yearly domestic holiday and an overseas trip every 7 years . Slack Investor has more lofty goals than this. Let’s focus on at least a comfortable retirement!

Even before President Trump’s misadventures in the Persian Gulf, prices have been moving north. The CPI rose 3.8% in the 12 months to December 2025 – but other household costs are rising faster. ASFA found plenty of price increases for the same period.

Electricity up 21.5 per cent, driven by the expiry of energy bill relief subsidies
Coffee and tea up 15.3 per cent due to rising commodity prices
Beef up 10.8 per cent
Domestic travel up 9.6 per cent
Water up 7.1 per cent
Property rates up 6.2 per cent
Medical and hospital services up 4.3 per cent
Fruit up 4.2 per cent
Private rental costs were up 3.9 per cent, just above the general inflation rate.

These price pressures have moved the required income for a comfortable retirement to even higher levels.

‘… homeowners aged 65 and over now need $77,375 annually for a comfortable retirement as a couple, and $54,840 for a single.’ _{– ASFA Report February 2026}

ASFA calculate that these retirement incomes at age 67 would require a super amount of $630,000 for singles and $730,000 for couples – assuming home ownership.

Are we on track?

Age	ASFA Required Comfortable Super Amount	Actual Male	Actual Female
30	$66 500	$55 690	$46 586
40	$168 000	$140 680	$109 209
50	$296 000	$254 071	$190 075
55	$377 000	$319 743	$242 945
60	$469 000	$395 852	$313 360
65	$571 000	$448 518	$392 274
67	$630 000	?	?

Assuming a future pre-tax income of $65,000 a year that keeps track with inflation. ASFA have calculated the Super milestones for a single person to reach $630,000 in super at retirement – ASFA February 2026 Report. Actual Male and Female Super balances from Rest Super (March 2026)

Male Super amounts are approaching the required ‘comfortable’ Super levels – but are still lagging. There is a definite gender gap in Super balances. Women suffer from structural inequalities in the workplace that include lower paid professions and career breaks for family.

As well as these existing Super shortfalls for a ‘comfortable’ retirement, these ASFA budgets assume that the retirees own their own home.

Despite the difficulty, Slack Investor encourages all to have the goal of their own home by retirement age. This may be a modest apartment, tiny home, a granny flat, or a place in the country. But it must be yours! Also, keep an eye on your Super and how it relates to the ASFA targets at each age level. Slack Investor always made sure his Super was in the Highest Growth option when he was under 55 and topped up his balance regularly with ‘Salary Sacrifice’ contributions.

March 2026 – End of Month Update

It was in March 2025 Update when Slack Investor wrote about the first ‘Trump Slump’ due to the random application of his trade tariffs to the world.

Well, thank you again Donald for your contribution. All followed markets fell this month. The ASX 200 down 4.0%, the FTSE 100 down 9.7%, and the S&P 500 down 4.3%. For now, each Index remains above their stop losses – but both the UK Index and Australian Index are perilously close to their stops. For now, Slack Investor remains IN for the FTSE 100, the ASX 200, and the US Index S&P 500.

The talented David Rowe has summed things up again – David Rowe, AFR

All Index pages and charts have been updated to reflect the monthly changes – (ASX Index, UK Index, US Index).

The quarterly updates to the Slack Portfolio have also been completed. There are some significant changes since the December 2025 update. Slack Investor has tinkered – and tried to remove the more speculative stocks in the Portfolio. He has stayed with established growing companies that will hopefully weather the storm. He has ended up with a good amount of cash (17.5% of Slack Portfolio). This will hopefully be deployed when he sees a return to more stable conditions.

Slack Portfolio Surgery – February 2026 End of Month Update

Robert Liston operating. Painting by Ernest Board of Bristol (1877-1934) – Wikimedia Commons

The leg amputation depicted above was supposedly done in under 30 seconds. Dr Liston not only managed to kill the patient (Sepsis), but one of his assistants (Sepsis) – and also one of the audience (shock). A 300% mortality rate! Slack Investor hopes for a better outcome after some recent portfolio surgery.

SaaS-pocalypse

The ‘SaaS-pocalypse’, a trending term to describe the recent and dramatic sell-off in global Software-as-a-Service (SaaS) shares, is based on the idea that AI becomes so advanced that software becomes redundant. _{– The Guardian}

Slack Investor went into a bit of detail last post on the sell off in tech and healthcare stocks due to the release of AI tools such as Claude. This wasn’t just some tale in a distant land, the ‘SaaS-pocalypse’ was having a very direct affect on the Slack Portfolio.

ASX200 biggest falls since August 2025 (Data as of 4/2/2026) – Livewire

Is this really a disaster for the Slack Portfolio? Slack Investor prides himself on getting things ‘mostly right’. However, this 2026 Financial Year has been testing – it seems that he has been getting things ‘mostly wrong’! However, Slack Investor knows that only long-term results count.

It is certainly a setback, as Slack Investor has attached himself to 5 of these ‘Biggest Fall’ ASX companies set out above. Some remedial action is required.

Slack Investor has been in this game long enough to not panic. He has however given the Slack Portfolio a ‘very hard look’ and has been gradually building up his cash position by selling companies that have not a convincing story to tell in these frothy times – particularly those with an extended PE Ratio. Future incomes may not be enough to justify their expense (high PE Ratio). He is mindful that the recent sell-off might be overdone in some cases.

But the companies being indiscriminately sold are often those whose actual protection was never in the codebase to begin with. The durable moats live outside the software entirely, in proprietary data rights, regulatory licences, institutional relationships, deep workflow embedding, and sustained frontier research. None of these can be prompt-engineered into existence. – Mark Gardner, MPC Markets –Livewire

Since his last published quarterly portfolio, Slack Investor has reduced his exposure to the US market (Sold NVDA, NDQ, JNDQ) and sold off some of his more speculative holdings (TLX, MP1 and CXL). His cash position is healthy and waiting for some future opportunities. His Stable Income pile plus Slack Portfolio dividends are enough for living expenses and holidays. Slack Investor should never be forced into a sale of his stocks.

Rules of thumb when bad things happen

Slack Investor has general rules of thumb for when stock prices have a fall of 20%. These questions must be asked.

Has something fundamentally changed with the company? Such as sustained falling earnings, new competitors, etc.
After running the numbers for predicted PE Ratio, predicted ROE and predicted growth. Would Slack Investor buy this company at the current price?

As well, for SaaS stocks, Slack Investor has another question.

Does the company produce proprietary software and embedded relationships with its clients that would provide a durable moat?

These three questions were enough for me to hang on to my battered software-based stocks TNE, CAR, REA, and WTC – and hope for a recovery.

February 2026 – End of Month Update

Slack Investor remains IN for Australian index shares, the US Index S&P 500 and the FTSE 100.

Despite the turbulence in the Slack Portfolio, it was a good month for the ASX 200 (+3.7%). The FTSE 100 is in record territory with 6.7% February growth. A well deserved rest for the US markets (S&P 500: -0.9%).

All Index pages and charts have been updated to reflect the monthly changes – (ASX Index, UK Index, US Index).

It was the best of times … it was the worst of times – January 2026 End of Month Update

Author of ‘A Tale of Two Cities’, Charles Dickens in his study at Gadshill

Slack Investor is a bit of a do-it-yourself bloke and has had reasonable success with his investing over the long-term. However, there is a place for outsourcing this noble task and it has always been Slack Investor’s intention to gradually take a back seat as he loses his faculties and hands over the whole kaboose to Ms Slack Investor. I always thought I would follow the great Mr Buffet’s thoughts on how to produce superior returns to most fund managers.

‘My advice to the trustee could not be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund.’ _{– Warren Buffet, 2013 Berkshire Newsletter}

Warren Buffet’s reasoning is based upon the relatively high fees that stock-picker (active) funds charge. It is his contention that these fees will erode any achieved outperformance for most of them. Is there still room for stock-pickers? With apologies to Charles Dickens, Slack Investor will examine this with a Tale of Two Funds from his own investing history.

The Tale of Two Funds

The Montgomery Fund

Slack Investor has always been impressed with Roger Montgomery. He often appears on the media and his own website with reasoned and intelligent comment. It was after one of these exposures that Slack Investor thought it would be a grand idea to allocate some of the Slack Funds to Montgomery’s signature vehicle. Slack Investor bought units in The Montgomery Fund. between 2012 and 2017. While there was some initial success, the continual long-term underperformance when compared to the ASX 300 Benchmark was enough for Slack investor to have misgivings – and pull the sell cord in 2020 for an eventual loss. It was a case of the ‘sizzle’ being more impressive than the steak.

The management fees for the Montgomery Fund start at 1.36%p.a. and there is also an outperformance fee of 15.3%. The table below shows that in all time frames, but most significantly, when using the long-term figures (> 5-yr), the Montgomery Fund has underperformed. The fund has been weighed down by its relatively high fees and poor performance. The fund is aware of its chronic underperformance and they attribute most of the blame to an old fund manager prior to 2022. However, the inability to keep pace with the benchmark even in the last 3 years, suggests to Slack Investor that the malaise still lingers.

Table of the Montgomery Fund performance vs S&P/ASX 300 benchmark till 31/12/2025 since since inception 17/08/2012 – The Montgomery Fund

PM Capital Global Opportunities Fund

Slack Investor’s ears pricked up during a Livewire Interview with Paul Moore, the founder of PM Capital. Mr Moore’s humility, common sense and experience came through when discussing his fund offerings. PM Capital run a number of different funds but the one that intrigued Slack Investor the most was the Global Opportunities Fund where:

The aim is to create long term wealth through a concentrated portfolio of 25-45 global companies that we believe are trading at prices different to their intrinsic values.

The PM Capital Global Opportunities Fund is available as a Managed Fund and also a Listed Investment Company (LIC). Slack Investor chose the LIC (PGF.ASX) as it is readily traded through his broker. PGF has fees of 1.0% p..a. and there are also an outperformance fee of 15%. However, looking at the intrinsic value of global companies is a skill that Slack Investor hasn’t got. For example, the largest position in PGF is European banks. PM Capital compare the Dutch origin ING (Book Value x 0.8, Forward PE 5) with Australia’s CBA (Book Value x 2.0, Forward PE 19). Slack Investor is happy to pay a fee to portfolio managers that are willing to seek out good value global companies. The long-term outperformance in the table below confirm that they are excellent at it!

Performance Table for the PM Capital Global Opportunities Fund, the Monthly update figures valid at 31/12/2025 were used together with the MSCI World Index returns in Australian Dollars (AUD). The PGF ETF was launched in December 2006 but the Fund’s inception date was October 1998.

This is not advice, and Slack Investor acknowledges that past performance does not guarantee future performance. However, the table above suggests that Mr Moore and his team know what they are doing. Consistently outperforming the MSCI World Index (in $AUD) is a considerable accomplishment. Slack Investor has bought some PGF with thoughts of adding further to his position in the future.

January 2026 – End of Month Update

End of month updates - Blue rising chart

Slack Investor remains IN for Australian index shares, the US Index S&P 500 and the FTSE 100.

In another crazy month of world turmoil (Thanks Mr President!) all followed markets rose strongly. The S&P 500 (+1.4%), the FTSE 100 (+2.9%) and the ASX 200 rose +1.8%. Slack Investor remains uneasy about how this great experiment will work out.

All Index pages and charts have been updated to reflect the monthly changes – (ASX Index, UK Index, US Index).

Be Old and Get Gifts – December 2025 End of Month Update

Portrait of an Old Man – Rembrandt Van Rijn – Harvard Art Museum

Slack Investor would have to say that getting old has several disadvantages. However, the Australian government is compensating for this – perhaps a little too much. Under the current ‘Intergenerational contract’ and our ‘tax transfer’ system – it pays to be old!

25 years ago, the 75+ age group’s post-tax income was only 75% of the average, but now it matches the average, indicating a significant shift. _{–(Source: ANU)}

The Black line on the chart below, represents the net value (aggregate) of government taxes and services at each age. It is a good demonstration of how the Australian tax and transfer system works. A recent ANU Report shows that these transfers are part of the intergenerational contract where the working community ‘looks after’ the young and the old:

The Australian tax and transfer system – (Source: ANU). The intergenerational contract is graphically displayed – the black line is the net value of government taxes and services at each age.

When people are young, they pay relatively little tax and they receive services such as education.
During working age, people typically pay more in taxes than they receive in services.
After retirement, older Australians usually receive more in government benefits and services (age pension, aged care and health care) than they pay in taxes.

These principles are sound in a caring economy. However, there is something profoundly wrong with the whole Australian tax system where:

Australians over the age of 60 have enjoyed a post-tax income similar to that of mid-career working age Australians and much higher than Australians aged 18-30 _{–(Source: ANU)}

The report describes how, in earlier periods, older Australians earned relatively little income while the tax and transfer system provided income and support. In recent years, Australian retirees generally have generated income from significant Real Estate and Superannuation accumulated wealth – and the Australian tax and transfer system has not adjusted.

We’re a country that overtaxes hard work that actually contributes to the economy and rewards those hoarding unproductive assets while contributing little back. _{– Tom Stelzer, Livewire}

The Australian Budget is in a structural deficit – the cash balance will be negative in every year going forward! In the next few years, it will be necessary to increase taxes or reduce Government spending.

The ANU Report suggests that budget repair should include both a mix of tax increases and spending reductions on older Australians. The proportion of over 65s paying tax has halved in the last 20 years. Slack Investor is not one to eagerly put his hand up for extra taxes – but he can see the community benefit. He will take it on the chin when it happens.

December 2025 – End of Month and Year Update

Although December in the US was a flat month (S&P 500 +0.0%), there was a bit of a ‘Santa Rally’ this month for Australia and the UK. The ASX 200 was up 3.3% and the FTSE 100 up 2.2%. Slack Investor remains IN for the FTSE 100, the ASX 200, and the US Index S&P 500.

I haven’t yet done the full maths on the market yearly gains that include dividends. In raw terms (without dividends), for calendar year 2025 the ASX 200 was up 7%, the FTSE 100 up a magnificent 21%, and the S&P 500 up 16%.

Amongst all this positive news, the Slack Portfolio has had a negative calendar year and is down 3.1%. Slack Investor has good long-term performance and accepts the volatility of the stock market. He is not surprised by the odd bad year, but amongst all this background rising tide – it is just poor form!

The Ashley Owen graphic below shows one of the reasons for the Slack portfolio negative performance is that he has attached himself to some of the biggest losers of calendar year 2025 (CSL -35%, Goodman Group -17% and Wisetech -41%). My New Year’s resolution is to pay a bit more attention to the Slack Portfolio and try to turn things around.

The ASX top shares movement till 12 Dec 2025 – From Ashley Owen IFPA lecture series – OwenAnalytics

All Index pages and charts have been updated to reflect the monthly changes – (ASX Index, UK Index, US Index). The quarterly updates to the Slack Portfolio have also been completed.

A technical note on the Slack Portfolio. Slack Investor has moved his Wesfarmers (WES) and Coles Group (COL) shares out of the growth-oriented Slack Portfolio because of their relatively weak projected growth (5%-10%). He remains a shareholder of these solid companies, but he has moved them into his Stable Income Fund – where they more comfortably sit.

On the Hunt – November 2025 End of Month Update

Hunting Scene with Foxhounds
John Frederick Herring – Art UK

Slack Investor has a little bit of spare cash and his Macquarie bank savings accounts are offering a risk free (but taxed!) interest rate of 4.25%. Not a bad place to park your money temporarily. However, even in this risky environment, he would rather have his money working in a profitable company. He is continually hunting for opportunities.

Last September, he read about a profitable business in a Livewire discussion with Martin Hickson and Steve Johnson. They mentioned SKS Technologies a company that is gaining contracts in building data centres and other types of electrical and audio visual fit out work. Slack Investor put SKS on his watch list and did a bit of research. This is not advice, just a little journey into Slack Investor’s small mind and a case study on how he finds companies to invest in. This type of information gathering is something all investors should try to do before they press the ‘BUY’ button. Extra research offers no guarantee of success, but Slack Investor only aims for ‘mostly right’.

SKS Technologies Group (SKS)

My first port of call is always the Market Screener Finance page to see if this idea is worth exploring further. Their income, projected income growth and lack of debt looked fine.

Next he looked at the projected numbers on the business health and relative price. Projected Price to Earnings ratio (PE) was refreshingly low for a growing company. Return on Equity (ROE) was high indicating a very profitable business. Because of some recent successful tenders, Earnings Per Share (EPS) Growth was also very high. These type of numbers gave an extremely large Slack Factor. Was this too good? Is the recent growth inflating the numbers too much?

Slack Investor was recently burned by a few recent purchases in the pharmaceutical sector that had high projected growth figures and a subsequently high Slack Factor score. The stock price came crashing down when there were a few regulatory problems and doubt on the future growth.

Over 70% of their order book now comes from data centres, and that’s up from zero four years ago … At the moment, the company has an order book of $200 million, a tender pipeline of $500 million _{– Martin Hickson, 1851 Capital}

SKS is an unusual type of business for Slack Investor to be interested in. They submit tenders for their services and their income depends on whether their tenders are accepted – there is always some uncertainty about the future income flow of these type of businesses. However, things are running hot at the moment with a just completed acquisition of a similar business and, they have just announced a new $130m project.

I don’t see SKS as a long-term ‘set and forget’ holding as the tender process is competitive and results (income) are not assured. But for now, data centres are the big thing and SKS certainly have the established expertise and a growing tender pipeline. They also have won contracts with Defence and other government work. I will hold my small parcel (0.5% of Slack Investment Portfolio) and, with the lessons learned from recent pharma investments, watch for the first earnings downgrade – then exit with some dignity (hopefully).

Waiting … Waiting

Daily Price Chart for SKS Technologies – incrediblecharts.com

Sometimes, the numbers (fundamentals) on the business can be really good and the chart tells a different story. Slack Investor kept looking at the charts, weekend after weekend in October. SKS was caught up with a general bad feeling on the AI and data centre companies – with a subsequent price slide. The market thought that these sectors were ‘overcooked’ – and prices were falling. This changed on Monday 24 November 2025 when there was a 10% price rise after a positive AGM presentation. Somebody was buying. Slack Investor got onboard with this momentum at $3.70.

November 2025 – End of Month Update

Slack Investor is IN for Australian index shares, the US Index S&P 500 and the FTSE 100.

The S&P 500 (+0.1%) and the FTSE 100 (+0.0%) had a volatile but eventually flat month. For the ASX 200, a bit of a slide downwards (-3.0%). The UK Index (FTSE 100) needed its stop loss moving upwards as prices were 15% above the previous value. The new UK stop loss was moved up to the new ‘higher low’ of 9276.

All Index pages and charts have been updated to reflect the monthly changes – (ASX Index, UK Index, US Index).

Ride that Horse! – October 2025 End of Month Update

Slack Investor reads a lot of finance news each week. Sadly, there now seems to be a portion of the finance news that seems to come from AI sources. However, there is still a lot of good stuff by real people – and he came across an excellent article by Carl Capolingua that had some great investor truths that apply to the current market.

A disciplined investor doesn’t fight the market – they respect it. They accept the market is responsible for their investing outcomes, win, lose or draw. They also accept that they have absolutely no control over the market or the outcomes it delivers. _{– Carl Capolingua, Livewire Markets}

The original article focuses on the difficulty of letting go of investments that have shown a loss. Slack Investor is still searching for this zen state and has written about his own troubles with selling stocks that have had a sudden fall. However, the quote above sums up ‘the bargain’ that Slack Investor has made with stocks and their volatility. I don’t know when the next correction (or worse!) is coming … but I know it’s coming.

World Markets are Expensive at the Moment

Although Slack Investor collects his own data on relative market value using CAPE numbers, the remarkable Ashley Owen has produced a great graphic showing the relative size of the world markets and how expensive they are at the moment in terms of PE and Yield. Clearly, the US market looks over ripe and any corrections here will historically influence all other markets.

World markets plotted by PE Ratio and Yield – From the very erudite Ashley Owen of Owen Analytics

Short-term Returns are Volatile

The chart below shows that the S&P 500 returns for a calendar year are all over the place, but if you just hung on, and didn’t sell the S&P 500 when times were tough, you would be rewarded with an average annual return of 12.2% over 30 years. Not Bad. Australian shares have returned an average yearly gain of 11.5% from 1900 to 2020.

Yearly Returns of the S&P 500 (green columns) and 15-yr rolling returns (blue line) – From T. RowePrice

What to do when the Correction comes

‘If you have trouble imagining a 20% loss in the stock market, you shouldn’t be in stocks.‘ _{– Vanguard founder – John C. Bogle}

Slack Investor has had no real luck in timing the markets – despite a disciplined 21-yr project trying to do this. There are those that can, Marcus Padley and his investment team have gone to 100% cash and reported this on 21 October 2025. Slack Investor hasn’t the knowledge, or gumption, to confidently predict market exits and entries – and yet, has done OK in the investing business without too much angst.

Slack Investor knows that for an ordinary person, the stock market is the place with best long-term returns with minimal transaction costs. The bargain – to accept volatility in return for long-term gains – is accepted.

He has his stable income pile to keep the dogs from the door.
He tinkers with his Investment Portfolio of predominantly growth shares, but mostly he leaves it alone.
He will not sell his shares after a correction and convert to cash.
He has elevated his cash position slightly (6% cash, 94% invested) in case some bargains come up post-correction.

These are choppy times and there is an uncertain near-term future – situation normal in the stock market. Some of his portfolio (e.g. CSL, WTC, TLX) have had big falls lately. However, Slack Investor has had a look at future revenue predictions and has not completely given up on these stocks. Though, CSL is losing its shine as a growth company in Slack Investor terms.

He will keep riding that stock market horse … and push to the forefront of his mind the pleasant times at the rodeo bar with his cowboy mates … reflecting on our glorious achievements.

October 2025 – End of Month Update

Slack Investor is IN for Australian index shares, the US Index S&P 500 and the FTSE 100.

The S&P 500 (+2.3%) and the FTSE 100 (+3.9%) have continued their strong monthly growth. Slack Investor is pleased to stay on board but there he remains nervous about the US markets. For the ASX 200, (+0.4%) a flat month with plenty of volatility.

All Index pages and charts have been updated to reflect the monthly changes – (ASX Index, UK Index, US Index).

CSL – Is Slack Investor flogging a dead horse? – September 2025 End of Month Update

Apologies to all readers who may have jumped on the CSL train in the past 5 years due to Slack Investor continually ‘bigging up’ this grand old stock. He has always been impressed with companies that spend a good portion of their profits in Research and Development.

‘CSL have committed to spending 10% of global revenue on R&D for new and existing products.’ _– _Livewire

Slack Investor has been a holder of this company since the ‘good old days’ (before 2020). But has occasionally topped up when the price dipped below $300. So, he does share some of the recent pain.

The latest price slump was on the back of the FY 2025 results and the announcement that one of CSL’s components, CSL Seqirus, was to be demerged. The markets were not that impressed with the planned restructure and slowing growth momentum.

However, some sectors of the business are doing well. CSL Behring and CSL Vifor reported strong growth.

This CSL horse should have some good riding ahead

The 2025 AGM indicated that management were taking the knife to costs and staff in a restructure of the business that is underpinned by the Seqirus spinoff and $500 million in pre-tax savings.

‘Despite all the headwinds from competition and regulatory price cuts, they’re (CSL) still growing double digit. I think that’s a pretty good business.‘ _{Daniel Moore – IML, reported in Livewire}

When nervous … Slack Investor will always go back to the numbers. Market Screener – Finance Tab for CSL supplies some of the answers. The Income chart looks healthy.

Income (Black) and projected income (Striped Grey) for CSL – Market Screener

Looking at the projected PE, ROE and growth from Market Screener – future predictions look OK.

Perhaps the big growth days of CSL are in the past due to the more competitive environment in some sectors of the business. However, Slack Investor is a long-term investor in CSL and happy to hold. He would buy more – if CSL wasn’t already 8.1% of portfolio.

September 2025 – End of Month Update

Another wild month. The S&P 500 (+3.5%) and the FTSE 100 (+1.8%) remain in all time high territory. The ASX 200 sputtering and down 1.4% for the month.

Slack Investor remains IN for all markets.

The recent strength of the US market has pushed the closing monthly value to more than 15% above my old stop loss. I adjusted the stop loss upwards to a new ‘higher low’ of 6212 for the S&P 500.

All Index pages and charts have been updated to reflect the monthly changes – (ASX Index, UK Index, US Index).

The quarterly updates showing the current holdings and cash position of the Slack Portfolio have also been completed.