“Mr Positive” strikes back: GQG and TUA soar

Oh my goodness!

Was it only back in November that I was almost embarrassed to say how bullish I was on the markets here on LiveWire?

I put it like this: Pessimists, Bears, Bores: You’re Crazy Not Me.

I kept hammering the point around the office so much some wag dubbed me “Mr Positive”.

I’ll take it. That suits my style.

Now here we are in February and the vibe is totally different.

Small caps are heating up. There’s no two ways about it.

Back in that November LiveWire post I mentioned a speech I did at the time.

There were 6 suggested stocks for those in the audience.

We just updated the numbers on those. Here’s how the results look in about 3 months…

(I won’t name them all here out of respect for my subscribers. But keep reading!)

A pretty valuable speech, I’m sure you’ll agree.

The star of the show, in hindsight, was GQG Partners (ASX: GQG).

Take a look at this pearler lately…

That sweet kick up in the last few days came about after they just released their monthly funds under management update.

GQG was just too cheap last year, and all the ingredients were there for this sort of outcome. You just had to let go of the dreaded macro noise.

Tuas (ASX: TUA) is hot on the GQG tail.

There were few better stocks (outside odd resource speccy) than this one last year.

I first recommended this back in March 2023. It's been a lovely ride up so far…

By November TUA was already up 100%. I said in my speech there was “more in it”.

We’re up 160% now.

Of course, hindsight is a wonderful thing.

It would be a pleasure to tell you I am a rare genius that can rip alpha out of the market any time.

Unfortunately not!

What I could see, as clear as day, was that small caps were hammered, sentiment was in the toilet and select shares ripe to rebound.

I didn’t know when or how this would happen. You just had to play the odds…and let Father Time do some of the lifting.

The risk versus reward on TUA and GQG is not quite as good as it was. But I still like them if you’re prepared to look two years out.

The good news is that this small cap bull run should have a long way to run yet. I’m hungry for more gains like this.

Recently I’ve been putting a report together on some Aussie small caps I think can benefit from the tidal wave of money and sentiment chasing AI around the world.

These aren’t your obvious suggestions like NextDC and Appen, blah blah.

It’s my take on the small cap shares with the right fundamental ingredients, sprinkled with some AI magic dust - plus a wink to Lady Luck and serendipity - that could brew something amazing.

It’s not even out yet. If chasing small cap rippers sound like fun to you, don’t forget to come check out Australian Small Cap Investigator.

I managed (somehow) to avoid most of the small cap carnage last year. And I kept hammering my guys to buy up small cap shares while they were on the floor.

They’re reaping the rewards now, and could be for a long while yet.

Yes, there are risks. There always are. They can be managed.

I urge you to get amongst it.

They don’t call me Mr Positive for nothing.

Best wishes,

Callum Newman