Returning to our knitting

Over the years we've written critically of many companies that, having established a nice, profitable niche at home, embark on an international expansion, only to return a few years later with their tails between their legs. Well, now we have our own version, albeit with a return measured in months rather than years.

When we asked members whether they'd like coverage of international stocks, a good proportion said 'yes'. So we launched a Premium service, offering coverage of mainly US-listed companies. Having preached of the benefits of international exposure for years it seemed like a logical, sensible step.

But take up has been poor. Members have voted with their feet, expressing a clear preference for ASX-listed stock research. The upshot is that we're going to refocus the team's efforts on local stocks, which is what the majority of members want. In truth, that focus was never really lost - we had only one staff member devoted to international research – but the launch certainly created that perception. And it did complicate things administratively.

So, we're picking up the needles and getting back to our knitting, ending coverage of international stocks (for Premium members Nathan's final coverage is here) and revamping our Premium offer. This has a number of implications. First, we've contacted all Premium members and advised them of their options. If you are a Premium member but didn't get our email, please let us know. Second, we're revamping the Premium product to make it more attractive.

New Premium membership

The original Premium service was priced at $1699 but we're reducing that by $400 to $1299. We're also going to include what we hope will be some very attractive goodies. In addition to your own dedicated analyst, Premium membership will feature a free digital subscription to The Australian Financial Review (valued at $750) and free attendance to Premium Intelligent Investor events – where you'll get the opportunity to speak to analysts in an informal setting.

We also know that many members miss the fortnightly print copy. After all, who doesn't like to sink into a hot bath, glass of wine in one hand and a sum-of-the-parts valuation of Wesfarmers in the other? We'll shortly be contacting you with more details if you want to upgrade but this early notification will give you some time to think about it.

None of this changes our view that members should have a decent proportion of their portfolio invested overseas. But it does present a challenge in how best to achieve it. Next week, we'll be publishing an article on other options, including a broadly diversified international model portfolio based on exchange traded funds.

Deep, value-based research

But the main message is that our short-lived international experiment is over. Next week will be jam-packed with deep, value-based research on ASX-listed stocks. First up is Jon Mills, reviewing former successful recommendation Village Roadshow, followed by Gaurav Sodhi's long awaited analysis on BHP. The Big Australian is currently a Hold, but with our price guide suggesting a buy below $28 and the stock trading at around $27, members that missed out when we last upgraded the stock in February may get another chance.

James Greenhalgh will run the rule over News Corp, which might also be due an upgrade having fallen below our suggested Buy price. Less prospective, but no less intriguing, will be Graham Witcomb's assessment of Ramsay Health Care (currently a Sell) and Healthscope (currently an Avoid). We'll round the week off with yours truly, covering the gnarly issue of how to incorporate international exposure into your portfolio without having to buy international stocks yourself. In the meantime, please email us or post your comments and feedback on the proposed changes below.