The first week of reporting season has already thrown up a few grenades with Isentia and Navitas both missing expectations. In this short video the panel discuss sectors and stocks that they like and how they handle a holding that gets crushed after missing investor expectations.


Just because a stocks has fallen 10% it doesn’t mean that it is now cheap. You need to go away and assess fair value.

Key points 

  • As a whole reporting season should be ok but most of the growth is likely to be driven by the resources sector.
  • Sectors that have structural tailwinds should report quite well given the strong activity on the east coast. Ben Rundle from NAOS Asset Management  likes Adelaide Brighton (ASX:ABC) as an exposure to this sector.
  • Small caps have already delivered some bombs with Isentia and Navitas. Sam Granger from Totus Capital says he is cautious of companies that have had operational issues in the past 18 months.
  • If your holding gets crushed you should avoid getting anchored to the previous share price.
  • On the upside, if a holding delivers a great result this can lead to good momentum for an extended period of time.
  • Both speakers share a stock they think can surprise on the upside.

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