It’s a big Results Season! Today’s video is PACKED with stocks!

• $AQZ, $MVP, $XRF, $SRG, $SXE, $IFM, $NCK +++
• We’re seeing a lot of stocks getting double-digit boosts, as well as a couple of disappointments.
• investors are hunting aggressively for sustainable growth 

Double-digit stock returns

What a reporting season this is turning out to be. Yes, reporting season or results season where all listed companies must report to the ASX. Our analyst team love it as we get to crunch numbers and tell you what we think!

We’re seeing a lot of stocks getting double-digit boosts, as well as a couple of disappointments. Overwhelmingly it’s telling us that investors are hunting aggressively for sustainable growth at the small end to town.

We’re seeing more Nick Scali’s, which is what I’ve been hoping.

Core versus Growth

I want to point subscribers to our website where we designate which stocks are Core and which are Growth.

We talk a lot about building a portfolio and the type of stocks you want to own in our $500 Strategy in Building Wealth – but you need to own a number of stocks whose valuations are based  on solid fundamentals. Only then can you really chase growth.

When you are paying for growth stories, these can often disappoint. The key is not to invest too much into any one growth stock. As Ashley Judd said to Val Kilmer in the movie Heat, It’s like Risk versus Reward Baby!

Stocks to notice this reporting season

Let’s go through a few stocks:

Alliance Aviation (AQZ)

Contract aviation services. GROWTH. It’s experiencing turbulence from the huge cost of 30 Embraer planes and increasing interest costs. Our message: hang in there, debt  has peaked and free cash flow is going to improve. Dividends are on the way.

Medical Developments (MVP)

GROWTH. this stock has been through a lot pain, which it should be able to handle, producing an analgesic known as the Green Whistle branded Penthrox. You’ve got to read the free ad the product got in an FT article from the head ski patroller in Chamonix – he called it a game changer. This is high risk growth.

XRF Scientific (XRF)

Mineral testing services – CORE. One of our best buys that has built up a business with three revenue streams. One of our best buys and is going strong through all wealther growth; More than doubled this year, we might be downgrading to hold after spiking hard in this result.

SRG Global (SRG)

GROWTH. A cyclical contractor. A very good result but it’s getting bigger and we’re taking profits having more than doubled.

Southern Cross Electrical (SXE)

Another contractor but CORE. This company has grown from being Growth to Core because it’s business of electrical implementation is both resources and industrial. We all know the growth is in these data centres, but there’s also grid scale batteries. We’re holding on for the ride.

Infomedia (IFM)

Another that has moved from Growth to Core- they have multiple revenue streams from servicing manufacturers or OEMs as well as car dealerships. This company is quality. 

Nanosonics (NAN)

Another stock where you could go either way is Nanosonics (NAN) – they do deep cleaning technology for probes and are trying to get into endoscopes. I’ve covered this company for a while now and I can tell you, they’ve  improved in quality. It’s on the edge of Growth or Core. Could go either way. Most importantly, we’ve been buyers since August at around $3 and the price has spiked after this result to the tune of 22% to $4.24.

Companies are moving feasts and what we’re looking for in small caps are those transitioning from Growth to Core. This means we’re getting more confidence in the fundamentals – that costs are consistently being covered, sometimes this means dividends, but most important that they’ve got a  solid customer base. It’s all in our Risk Rating.

There are so many opportunities coming out of this reporting season, all you have to do is go to our website.

We will have packed blue chip and small cap reports in the next few weeks with lots of stocks highlighted where we see value.