SMALL stocks tipped to outshine larger counterparts on earnings growth in the current year. There is a broad consensus the small stocks - many of which have...
Contango Asset Management
SMALL stocks tipped to outshine larger counterparts on earnings growth in the current year. There is a broad consensus the small stocks - many of which have substantial market valuations - have fared marginally better than their larger cousins. Contango Asset Management Ltd portfolio manager Bill Laister says current-year EPS forecasts across the Small Ords Index have been downgraded by 1.5-3 per cent over the August reporting season. Notwithstanding, the sector is expected to achieve EPS growth of 21.7%, having achieved 17.7% in 2013-14. This compares with current-year growth forecasts of about 7% for the top stocks. The small-cap growth is skewed to the resources sector, with EPS growth tipped to surge 180% off a low base. The small-cap industrials are expected to post 12.6% growth, compared with 7.8% in 2013-14. As long as the world doesn't fall apart they look pretty robust,'' Mr Laister said
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Contango uses a combination of top down and bottom up analysis to identify the most attractive investment opportunities in the Australian share market. Contango's Business Cycle approach enables us to shift between growth and value depending on market conditions. We undertake detailed analysis of economic and industry trends to assist us in identifying sector themes, such as the China induced demand for commodities. Our in depth company research enables us to identify those companies that have the strategies, management capabilities and business environment to deliver superior returns.
Contango Asset Management
Fund Manager
Contango uses a combination of top down and bottom up analysis to identify the most attractive investment opportunities in the Australian share market. Contango's Business Cycle approach enables us to shift between growth and value depending on...
Expertise
No areas of expertise
Contango Asset Management
Fund Manager
Contango uses a combination of top down and bottom up analysis to identify the most attractive investment opportunities in the Australian share market. Contango's Business Cycle approach enables us to shift between growth and value depending on...
Expertise
No areas of expertise
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