Livewire Equities

With resources back in vogue investors have moved quickly to price in an meaningful uplift in earnings. Charlie Aitken from Aitken Investment Management says rather than trying to chase momentum, investors would do well trying to identify companies where growth is being overlooked. “I think the more interesting part is where in the market is growth mispriced and where can you find 15% earnings growth? There’s going to be some industrial growth stocks, that are globally oriented that can deliver 15% to 20% earnings growth and have probably done nothing much over the past 6 months while resources have done well.” Aitken says the three largest positions in his portfolio are Treasury Wines, Aristocrat and Link – all of which he believes can deliver 15% - 20% earnings growth and currently trade at undemanding multiples. “I think it’s time to look back at the really high quality end of the market.” (VIEW LINK) (Source: Switzer)


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