Similar to RogerMontgomery i have my own formulae to construct a...

Similar to RogerMontgomery i have my own formulae to construct a list of 'star stocks'. The main difference is i place more emphasis on qualitative input e.g. macro climate, barriers to entry, pricing power and quality of management (QoM). TWO has several strengths but i can find a company on ASX with more astute management than TWO. Morgan and Banks are unequalled imo. And the strong increase in profits accruing to TWO are testimony to how they operate. I also not they are almost certainly the lowest paid managing directors of any company on ASX all ords. They are self-made men who don't have to work. They formed TWO almost for the love of staying involved and showing they can do it all again.

TWO has shot up my list of 30 best non-mining stks to 5th position. I doubt it will ever be out the top 5 for next several years. TWO worth a close look from investors who can handle low liquidity. Mkt cap of 190m means it's not a micro-cap but v.thinly traded. Am expecting a9c ffr div in FY12.