2 ideas in 200 words #9

The cheapest real growth stock in 3 decades of investing plus a stock worth being patient with
Romano Sala Tenna

Katana Asset Management

We are Actively Buying…

Metro Mining Ltd (ASX: MMI)

Metro Mining 1-year chart
Metro Mining 1-year chart

MMI is only capped at $430m, so at this size, there are additional risks. 

However, we see a standout opportunity as the company moves to a position of net cash in the current quarter. 

 MMI is currently landing bauxite on a ship for ~$31/t. This already places MMI in the bottom quartile globally, with current forecasts indicating that this will reduce further to ~$26/t as the operation hits the 7mtpa run rate. Site margin is likely to be close to $35/t this FY, yielding close to $250m per annum. This places MMI on a PER of 3x for the current year, moving to 2.2x FY27.

We are Being Patient with…

IPH Limited (ASX: IPH)

To recap, IPH is the largest intellectual property group in Australia, Canada and Singapore. The company has also established positions in other countries, including China. IPH has had a difficult period since peaking at over $10 per share in early 2023. The last half has been challenging in both Australia and Canada. However, we forecast a notably stronger FY26, particularly in Canada. 

Value stocks are actively catching a bid, and we expect this to continue given our expectation that the long end of the yield curve will actually increase. 

 IPH is on current year PER of 10.8x and a yield of 6.8%.

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2 stocks mentioned

Romano  Sala Tenna
Portfolio Manager
Katana Asset Management

Katana Asset Management was founded in September 2003 as a boutique investment management firm. Katana employs an all opportunity investment mandate being style, sector and market cap agnostic.

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