Livewire readers’ best and worst picks

Livewire Exclusive

Livewire Markets


The only new name on the  list of five best performing bigcap tips  since our last update is Monadelphous, which Marcus Burns, Portfolio Manager at Spheria Asset Management highlighted as a great opportunity in a Livewire interview. He  commented that: “Monadelphous screened very well from a cashflow, earnings, balance sheet point of view and was also widely disliked by the sellside community. We saw a business that was well run, great management team, and was well and truly oversold”:   (VIEW LINK)

[Screen Shot 2016-12-05 at 11.52.54 AM.png]

 

In the smallcaps table, Galaxy Resources has seen the biggest gain of all tips since our last review, after the company recently reported its first production of lithium concentrate. The only new entrant to the top performing smallcaps list is Nanosonics, which jumped on a strong Sept quarter report, showing a third consecutive quarter of positive cashflow. 

 

[Screen Shot 2016-12-05 at 11.53.02 AM.png]

 

Unfortunately smallcaps can just as easily halve your money as double it, and market favourite Bellamy’s has done precisely that this year after collapsing last Friday. Steve Johnson of Forager wrote on Livewire: “It joins a growing list of priced-to-perfection growth stocks that have disappointed investors late in 2016 (APN Outdoor, TPG, Vocus etc etc). It still trades at 20 times last year's earnings. That's a multiple that implies growth, and management is suggesting that this year is going to show a decline”:  (VIEW LINK)

[Screen Shot 2016-12-05 at 2.53.35 PM.png]

On iSentia, Roger Montgomery recently questioned  whether the pullback was an overreaction: “The drivers of the downgrade appear temporary, the restructure will include the implementation of a new organisational structure and CEO for King Content as well as merging the ISD & King Content sales teams.”More here: (VIEW LINK)

 

An interesting addition to this list is uranium stock, Paladin, which has fallen yet again in recent months, to put the stock down by 99.4% since it peaked almost ten years ago. It's hard to think of a more disliked commodity that uranium,  within  what is already a less than favoured sector. But ... then again you could reasonably have said the same thing about coal this time last year, and look what happened there. 

 

You can read our last review of the stock calls here:  (VIEW LINK) and revisit the full 2016 Outlook Series on this link:   (VIEW LINK)

 


1 topic

Livewire Exclusive brings you exclusive content from a wide range of leading fund managers and investment professionals.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.