Good things happen to cheap stocks!
That is the big takeout from this reporting season and is really does validate what we do here at Under the Radar Report.
A Quick Reporting Season Update!
CBA versus NAB, Coles versus Woolworths
But first, at the big end of town we’ve seen CBA bought up after the result and NAB punished; we’ve seen Coles bought an Woolworths sold. You might not be on the right side of these moves but you should always remember that investing is about the long-term. You need to look through the day-to-day and at what role each stock is playing in your portfolio or could play.
stock picking is very much the key
Buy, Sell Hold: 3 stocks that are highlights for us.
Buy: Hansen Technologies ($HSN)
The buy has to be simply because this is a quality company and we’re getting another bite of the cherry. The stock has been a strong performer for us because it’s leveraged to growing demand from utilities for billing software. It’s founder led. It’s also gaining access into we cloud based software and to a german customer base. The stock got sold off but we think the cash flow its got coming through make it very cheap
Hold: XRF Scientific ($XRF)
On the hold front I have to go to the one Hansen replaced on our best buys, XRF Scientific (XRF). This minerals testing specialist has almost doubled in our the past 12 months. We don’t always get our timing right to this degree, but the stars have aligned. All our contractors are doing so well and this has been a stand out. The key is that it’s got gold standard IP. The stock still isn’t that big with a market cap of less than $300m and global potential. There you go.
Sell/Take Profits: Energy One (EOL)
Every now and then there’s a small cap that hits the ball out park and I’m glad to say that it’s another one we’ve had on our best buy list Energy One (EOL). This company is in the epicentre of the energy transition; Its software trades throughout Europe and Australasia. There are 250 generators in Australia, up from 150 in 2018. If it were a generator, EOL would be the fourth largest in the National Energy Market.
The shares spiked 60% on a result where the company forecast 15-20% revenue growth over the next few years on top of margin expansion.
The shares spiked 60% on a result where the company forecast 15-20% revenue growth over the next few years on top of margin expansion. This stock could go further but we’ve more than doubled our money and you cannot go wrong taking a profit.
It’s important to note that we’re not selling our entire holding. What we do at Under the Radar is take our costs and let our profits run. That’s the discipline and it’s always fund playing house money.
Next week we’ve got another loads more stocks coming at subscribers, which include some they’re asked us specifically about.
Members! Head to the shiny new dashboard to catch up on the latest stocks to buy and our Best buys!
You will also see CORE stocks and GROWTH stocks outlined in our Small Cap Dashboard.
If you are not a member yet! What are you waiting for! Make your money work for you!
