Rudi’s View: Aussie Banks & TechOne

This story features TECHNOLOGY ONE LIMITED, and other companies. For more info SHARE ANALYSIS: TNE

In today’s update:

-TechnologyOne
-Aussie banks
-Conviction Calls and Best Buys

By Rudi Filapek-Vandyck, Editor

I had to look it up, as the human memory is not 100% reliable when it comes to exact details: the last time TechologyOne ((TNE)) shares traded near $10 was in 2022.

The timing is important because that was the moment when one of the local value investors published a blog about this ASX-listed wealth creator and argued the numbers simply did not stack up.

There was no way in which owning the shares at that lofty level was ever going to be positively rewarded. The numbers were proving it. You’d have to be extremely deluded to not sell and move onto cheaper alternatives.

Hold that thought.

About one year later, we’re in the second half of 2023 now, TechOne shares are hovering around $15.50 and yet another expert voice declares on financial TV: short the stock, it’s over-priced.

Today, Wednesday July the 31st in 2024, as I am writing these sentences, the shares have surpassed $20, inspired by a rally post detailed investor briefings on the day prior.

Seldom have I ever truly understood Peter Lynch’s advice that you should know what you own in the share market, and why you own it.

There’s equally a lot of wisdom in these words for investors who listen to expert voices through financial media: one-size fits all comes in extremely handy when one needs to look smart and knowledgeable, but it’s seldom accurate because companies are not equal to each other, and some are a lot more equal than others.

I own TechOne shares because this is a company investors can rely on to double in size every five years, on average, and the past two decades have proven exactly that. As a matter of fact, and as the short timeline above suggests, investment returns for loyal shareholders have been a lot better than the average of 14.87% per annum (which is the reward for 100% upside over five years).

Here’s another invaluable piece of wisdom for investors: quality companies tend to outperform expectations.

I had no idea the reward for owning TechOne shares in 2022 was 100% return in two years. And still, I am not selling. If for some reason the Nasdaq melts down in September and sellers abandon the stock to preserve their profits, and the shares unexpectedly tank, I will be on the look-out to buy more.

This growth story is still nowhere near the finish line. To understand this, one must ignore the regular occurrences of accidents and lucky streaks experienced by the lower-quality alternatives on the ASX. Companies like TechOne are like Ronaldo and Messi on the world stage, or Djokovic in tennis, or the All Blacks; they don’t win every time, but you should not bet against them.

So, what is this latest rally all about? In essence, management at the helm is convincing analysts that, contrary to views expressed by Morgan Stanley and Morningstar, TechOne is not just a plain ordinary software services provider that has nothing special to offer its database of clients.

This week’s bout of enthusiasm follows on from management’s crucial decision last year to launch something that makes TechOne unique in its industry, worldwide. The product itself is called SaaS-Plus. I won’t bother you with the boring details, but the novelty in this offering to new clients is that TechOne takes on board the risk and costs for installing and implementing its software solutions.

This is a big deal. In a lot of cases there are delays, cost overruns, budget blow outs, you name it. TechOne is strategically removing the initial barrier for new customers by making it less cumbersome and cheaper to come on board. The benefit comes over the subsequent years as those initial costs are added onto the annual licensing fees.

As the company stays within its circle of competence, even as it is developing new growth avenues in the UK, it’s not difficult to understand where its comfort stems from. Historically, customer loyalty sits above 99%, so it’s not too difficult to see the accumulating benefits long into the future. Management has always been very clear about its strategy: get the customers on board, keep them happy, then sell them more products.

It has worked for more than twenty years. We all know what ‘they’ say about a winning formula.

Part of the additional attraction is not only that further growth appears to be secured at the top line, and some analysts are now suggesting this new SaaS-Plus offering might well accelerate the onboarding of new customers, but margins could well rise more than previously expected.

RBC Capital, for example, is now modeling a gross-profit margin (profit before tax) of 38.6% by FY30 instead of the previously projected 36.8%. For those who understand the multiplying effect of mathematical modeling, the importance of that additional 1.8%point on top of higher sales needs no further explanation.

One day after attending the investor briefings, RBC Capital has upgraded its rating to Outperform with an upgraded target of $24, up from $20 previously. If somehow management is able to still outperform on revised forecasts, RBC can see that target rising further to $29.

There were other positives in this week’s presentations, and you might read about them in the coming days, but I think the above summarises the core of the investment thesis in TechOne. Is there no chance they might fail? That risk is always present. But just like in the world of sporting giants, when you discover exceptional talent, you don’t bet against it.

(You can leave that to your typical value investor who still doesn’t understand why the numbers at half today’s share price weren’t telling the full story).

Goes without saying, TechOne is included in my personal research into All-Weather Stocks. It is a core holding for the FNArena-Vested Equities All-Weather Model Portfolio.

Paying subscribers have 24/7 access to my research via a dedicated section on the website: https://fnarena.com/index.php/analysis-data/all-weather-stocks/

Aussie Banks

One of THE big surprises so far in 2024 has been the sharp outperformance of Aussie bank shares when just about everyone called them “expensive”, if not “extremely over-priced”.

But come hail, snow or extreme heat, nothing was going to stop CommBank ((CBA)) shares to set a new all-time record high or its peers reaching for new multi-year highs (they’ve had a whole decade-and-a-half of no progress, so cut them some slack, please).

We’ve seen movies like this before, but 2024 is playing a rather extreme version of it: those “expensive” and “over-priced” banking shares outperformed the broader market by no less than 1500 basis points throughout the first seven months, reports JP Morgan. That amounts to 15% more return than the ASX200 including dividends for mere mortals like us.

Goes without saying, what looked “expensive” and “over-priced” back in January, must be even more by now. True to form, there’s isn’t a bank on the ASX whose shares are currently not trading above the average target set by brokers monitored daily by FNArena, unless you’re Suncorp ((SUN)).

Indeed, even Judo Bank ((JDO)) and Bank of Queensland ((BOQ)) are trading at valuation “premiums” these days.

Logically, there’s isn’t a single Buy rating in sight for any of the Big Four and all six ratings for CommBank in the FNArena universe are Sell.

Before we start throwing mud towards the stockbroking analysts who’ve had to endure a lot of mocking and questions from clients and daytraders, no doubt, let’s also consider the local funds management industry has seldom been as underweight the sector as in 2024.

Wait! This story gets weirder, still. JP Morgan has gone through the local bank registery data and noticed retail investors are selling too. Apparently, the selling by retail investors has been at the fiercest pace since June 2021.

But… if stockbrokers aren’t buying, and neither are their customers one presumes, and local fund managers aren’t either, and now retail investors are jumping ship as well, who’s left to keep the positive momentum ongoing?

My own knee-jerk response is to look internationally where banks have been very much the flavour of the year on expectations of central banks loosening interest rates, but JP Morgan has found an intriguing alternative explanation in the latest quarterly registry updates by the banks: “domestic institutions”.

JP Morgan suggests this refers to Australian super funds. Other data up until December have been indicating super funds have been increasing their active weights for the industry, with exception of CommBank. And that’s the sector leader whose premium vis a vis the consensus target set by stockbrokers, also in comparison with the other banks, might well never have been as high as it is in 2024.

Go figure.

JP Morgan’s view remains the same: Australian banks are over-valued to the magnitude of 16%. The broker’s Model Portfolio remains heavily underweighted the sector. According to JP Morgan’s data analysis, local fund managers are now the least exposed to the sector since it started gathering data on the industry.

Still, some 11% of funds are currently sitting on an Overweight position, the lowest percentage since July 2020.

Model Portfolios, Best Ideas & Conviction Calls

Ord Minnett‘s Buy-rated stocks in the local technology sector are currently: Cosol ((COS)), Dropsuite ((DSE)), Hansen Technologies ((HSN)), Life360 ((360)), Qoria ((QOR)), Seek ((SEK)), Siteminder ((SDR)), and Xero ((XRO)).

The list contains one lonely Sell rating, which is reserved for Pro Medicus ((PME)).

****

Market strategists at Evans and Partners bemoan the fact higher for longer inflation numbers in Australia are preventing the RBA from lowering the burden of high interest rates. This, argue the strategists, effectively places a ceiling over the economy and the share market, limiting upside potential.

The key risk for the quarters ahead, argues Evans and Partners, is that high inflation with low growth becomes the consensus view locally. The strategists thus implore investors to be cautious and selective, “scruitinising those businesses and industries facing cyclical headwinds and instead focussing on companies with more diverse earnings drivers.”

Evans and Partners’ key focus has turned to offshore earners, “as well as businesses with strong industry positions benefiting from structural thematics such as digitalization and decarbonisation”.

Selected names:

-Aristocrat Leisure ((ALL))
-Brambles ((BXB))
-Flight Centre ((FLT))
-Macquarie Group ((MQG))
-Treasury Wine Estates ((TWE))
-James Hardie Industries ((JHX))
-Block Inc ((SQ2))

As well as:

-BHP Group ((BHP))
-Rio Tinto ((RIO))
-Monadelphous Group ((MND))
-APA Group ((APA))
-NextDC ((NXT))
-Macquarie Technology Group ((MAQ))

Also worth mentioning, Evans and Partners’ preferred yield ideas are:

-APA Group ((APA))
-Arena REIT ((ARF))
-Qantas Airways ((QAN))
-Telstra ((TLS))

****

Key Stock Picks for the year-ahead noiminated by analysts at Bell Potter:

-Among listed investment companies (LICs); Australian Foundation Investment Company ((AFI)), Metrics Master Income Trust ((MXT)), and MFF Capital Investments ((MFF))

-Agriculture & fast moving consumer goods; Bega Cheese ((BGA)), Rural Funds Group ((RFF)), and Elders ((ELD))

-Technology; TechnologyOne ((TNE)), Gentrack ((GTK)), and REA Group ((REA))

-Diversified Financials; Perpetual ((PPT)), Regal Partners ((RPL)), and McMillan Shakespeare ((MMS))

-Real Estate; Dexus Convenience Retail REIT ((DXS)), HealthCo Healthcare & Wellness REIT ((HCW)), and GDI Property Group ((GDI))

-Retailers; Premier Investments ((PMV)), Universal Store Holdings ((UNI)), and Propel Funeral Partners ((PFP))

-Aerospace & Defence; Electro Optic Systems ((EOS)) and Austal ((ASB))

-Industrials; Brickworks ((BKW)), IPD Group ((IPG)), and Cleanaway Waste Management ((CWY))

-Healthcare; Telix Pharmaceuticals ((TLX)), Cyclopharm ((CYC)), Aroa Bioscience ((ARX)), MedAdvisor ((MDR)), and Neuren Pharmaceuticals ((NEU))

-Gold sector; Capricorn Metals ((CMM)) and Santana Minerals ((SMI))

-Base metals; Aeris Resources ((AIS)), Nickel Industries ((NIC)), and Mineral Resources ((MIN))

-Strategic Minerals; Alpha HPA ((A4N)), IperionX ((IPX)), and Liontown Resources ((LTR))

-Energy sector; Boss Energy ((BOE)) and Paladin Energy ((PDN))

-Mining services; Seven Group Holdings ((SVW)), Mader Group ((MAD)), and SRG Global ((SRG))

****

Barrenjoey Chief Equity Strategist Damien Boey has been among the first to declare it’s time to pivot the investment portfolio in favour of a more defensive positioning (not that the market has been paying any attention).

Barrenjoey’s Bucket List of conviction calls includes the following selection:

-Woolworths Group ((WOW))
-Viva Energy Group ((VEA))
-TechnologyOne ((TNE))
-Medibank Private ((MPL))
-Steadfast Group ((SDF))
-Aussie Broadband ((ABB))
-QBE Insurance ((QBE))
-Santos ((STO))
-Northern Star ((NST))
-Ampol ((ALD))
-Insurance Australia Group ((IAG))
-Ventia Services Group ((VNT))
-AUB Group ((AUB))
-Aristocrat Leisure ((ALL))
-Brambles ((BXB))
-Origin Energy ((ORG))
-Cochlear ((COH))
-Car Group ((CAR))
-Metcash ((MTS))
-Aurizon Holdings ((AZJ))
-Cleanaway Waste Management ((CWY))
-ResMed ((RMD))
-Orora ((ORA))
-Telstra ((TLS))
-CSL ((CSL))

Boey’s reasoning for a more defensive portfolio positioning is because global risk appetite is currently much higher than the economic outlook deserves it to be. Even with the prospect of central bank rate cuts underpinning positive sentiment, Boey thinks it’s more likely risk appetite will, at some point, pull back.

Potential triggers include the Bank of Japan diverging away from its global peers, and devaluations of JPY and/or the Chinese Yuan.

In Australia, the Barrenjoey strategist worries about the RBA raising rates further in response to stubbornly high inflation. With excess savings depleting rapidly among Australians, consumer spending remains at risk of slowing further, with negative flow on effects for the labour market.

Barrenjoey is thus underweight banks and domestic rate-sensitive cyclicals and believes Insurance, Staples, Telcos, Healthcare and Utilities are defensive in this environment.

****

JP Morgan‘s last update on Emerging Companies (“small caps”) showed Superloop ((SLC)) is the Top Pick and Dicker Data ((DDR)) is the broker’s Bottom Pick.

The first is lauded for its strong operational momentum on still an undemanding valuation, while the market is seen as too optimistic for Dicker Data’s outlook which includes slowing top line growth.

****

The full list of UBS’s Least Preferred stocks now includes:

-Aurizon Holdings ((AZJ))
-ASX ((ASX))
-Bank of Queensland ((BOQ))
-CommBank ((CBA))
-Cochlear ((COH))
-Domain Holdings ((DHG))
-Pilbara Minerals ((PLS))
-Reece ((REH))
-Scentre Group ((SCG))

UBS’s full list of Most Preferred stocks:

-AGL Energy ((AGL))
-BlueScope Steel ((BSL))
-Orica ((ORI))
-Origin Energy ((ORG))
-Rio Tinto ((RIO))
-Santos ((STO))

-AUB Group ((AUB))
-Computershare ((CPU))
-nib Holdings ((NHF))
-QBE Insurance ((QBE))
-Suncorp Group ((SUN))

-Brambles ((BXB))
-Coles Group ((COL))
-CSL ((CSL))
-James Hardie ((JHX))
-NextDC ((NXT))
-Super Retail ((SUL))
-Telstra ((TLS))
-Treasury Wine ((TWE))
-Universal Store ((UNI))
-Worley ((WOR))
-Xero ((XRO))

****

Ord Minnett analysts’ Conviction List consists of the following:

-Alliance Aviation Services ((AQZ))
-ARB Corp ((ARB))
-Cosol ((COS))
-EQT Holdings ((EQT))
-Lindsay Australia ((LAU))
-Pinnacle Investment Management ((PNI))
-Red 5 ((RED))
-Regis Healthcare ((REG))
-Select Harvests ((SHV))
-SRG Globval ((SRG))
-Waypoint REIT ((WPR))
-Webjet ((WEB))
-Whitehaven Coal ((WHC))

****

Goldman Sachs’s High Conviction calls for the Asia-Pacific region includes only four ASX-listed companies:

-Lynas Rare Earths ((LYC))
-Woolworths Group ((WOW))
-Qantas Airways ((QAN))
-Xero ((XRO))

****

Jarden’s select list of preferred small cap stocks in Australia (“Emerging Companies key picks”):

-Temple & Webster ((TPW))
-Lovisa Holdings ((LOV))
-Siteminder ((SDR))
-Nick Scali ((NCK))
-Universal Store Holdings ((UNI))
-Dicker Data ((DDR))

Plus also (“sector picks”):

-Ingenia Communities Group ((INA))
-National Storage ((NSR))
-Telix Pharmaceuticals ((TLX))
-Karoon Energy ((KAR))
-Domain Australia Holdings ((DHG))
-Inghams Group ((ING))
-NRW Holdings ((NWH))
-Light & Wonder ((LNW))
-Pepper Money ((PPM))
-Champion Iron ((CIA))

****

Morningstar’s Best Equity Ideas for ASX-listed stocks contains 14 inclusions, with Brambles, Dexus and Endeavour Group joining in and a2 Milk, Ventia Services and Lendlease no longer included. Morningstar’s approach is traditionally centred around ‘cheap value’, or in Morningstar’s own words:

“monthly Best Stock Ideas highlights high-quality Australian and New Zealand companies, which are currently trading at discounts to our assessed fair values.”

-Brambles ((BXB))
-Dexus ((DXS))
-Endeavour Group ((EDV))
-TPG Telecom ((TPG))
-Domino’s Pizza ((DMP))
-Bapcor ((BAP))
-Santos ((STO))
-AUB Group ((AUB))
-ASX Ltd ((ASX))
-Aurizon Holdings ((AZJ))
-Pexa Group ((PXA))

As well as Fineos Corp ((FCL)), ResMed and Newmont Corp among international ideas.

****

Morgan Stanley’s Australia Macro+ Focus List contains the following 10 stocks:

-Aristocrat Leisure ((ALL))
-Car Group ((CAR))
-CSL ((CSL))
-Macquarie Group ((MQG))
-Origin Energy ((ORG))
-Paladin Energy ((PDN))
-QBE Insurance ((QBE))
-Suncorp Group ((SUN))
-Treasury Wine Estates ((TWE))
-Woodside Energy ((WDS))

****

Morgan Stanley’s Macro+ Model Portfolio consists of the following 32 constituents:

-ANZ Bank ((ANZ))
-CommBank ((CBA))
-National Australia Bank ((NAB))
-Westpac Bank ((WBC))
-Macquarie Group ((MQG))
-QBE Insurance ((QBE))
-Suncorp Group ((SUN))
-Goodman Group ((GMG))
-Scentre Group ((SCG))
-Stockland ((SGP))
-Aristocrat Leisure ((ALL))
-Car Group ((CAR))
-Domino’s Pizza ((DMP))
-The Lottery Corp ((TLC))
-Wesfarmers ((WES))
-James Hardie ((JHX))
-Orica ((ORI))
-Coles Group ((COL))
-Treasury Wine Estates ((TWE))
-CSL ((CSL))
-ResMed ((RMD))
-AGL Energy ((AGL))
-Origin Energy ((ORG))
-Telstra ((TLS))
-Transurban Group ((TCL))
-BHP Group ((BHP))
-Newmont Corp ((NEM))
-Rio Tinto ((RIO))
-South32 ((S32))
-Paladin Energy ((PDN))
-Santos ((STO))
-Woodside Energy ((WDS))

****

Wilsons‘ list of Highest Conviction Investment Ideas: TechnologyOne, Worley ((WOR)), Woodside Energy, Aristocrat Leisure, and Collins Foods ((CKF)).

More ideas come with “long term growth” profiles:

-Ridley Corp ((RIC))
-Universal Stores ((UNI))
-ARB Corp ((ARB))
-Neuren Pharmaceuticals ((NEU))
-Pinnacle Investment Management ((PNI))

Among Resources stocks, there are two favoured ideas:

-Beach Energy ((BPT))
-Liontown Resources ((LTR))

And there’s a Speculative basket too:

-Immutep ((IMM))

****

Wilsons’ Focus Portfolio‘s largest overweight remains towards growth companies, including a large overweight to the healthcare sector. The largest underweight allocation remains for local banks. The Portfolio also holds a slight overweight allocation to resources, but this is due to “active positioning” in green metals and energy (underweight iron ore).

The Focus Portfolio encompasses the following:

Consumer Discretionary
Aristocrat Leisure ((ALL)), Lottery Corp ((TLC)), Collins Foods ((CKF)), Breville Group ((BRG)), Webjet ((WEB))

Energy
-Woodside Energy ((WDS))

Financials
-ANZ Bank ((ANZ)), National Australia Bank ((NAB)), Westpac ((WBC)), Macquarie Group ((MQG)), Insurance Australia Group ((IAG)), Netwealth Group ((NWL)), Steadfast Group ((SDF))

Healthcare
-CSL ((CSL)), ResMed ((RMD)), Telix Pharmaceuticals ((TLX))

Industrials
-Worley ((WOR))

Information Technology
-TechnologyOne ((TNE)), Xero ((XRO))

Materials
-BHP Group ((BHP)), Amcor ((AMC)), Evolution Mining ((EVN)), Mineral Resources ((MIN)), Arcadium Lithium ((LTM)), Sandfire Resources ((SFR)), South32 ((S32))

Real Estate
-Goodman Group ((GMG)), HealthCo Healthcare & Wellness REIT ((HCW))

****

Macquarie Wealth’s recommended Growth Portfolio:

-Goodman Group ((GMG))
-Seek ((SEK))
-Aristocrat leisure ((ALL))
-Northern Star ((NST))
-CSL ((CSL))
-Computershare ((CPU))
-NextDC ((NXT))
-Flight Centre ((FLT))
-Mineral Resources ((MIN))
-Cleanaway Waste Management ((CWY))
-Steadfast Group ((SDF))
-Arcadium Lithium ((LTM))
-ResMed ((RMD))
-Pexa Group ((PXA))
-Treasury Wine Estates ((TWE))
-Viva Energy ((VEA))
-Xero ((XRO))

Macquarie Wealth’s recommended Income Portfolio:

-Suncorp Group ((SUN))
-Telstra ((TLS))
-National Australia Bank ((NAB))
-Westpac Bank ((WBC))
-ANZ Bank ((ANZ))
-BHP Group ((BHP))
-CommBank ((CBA))
-Premier Investments ((PMV))
-Coles Group ((COL))
-Viva Energy ((VEA))
-Atlas Arteria ((ALX))
-Aurizon Holdings ((AZJ))
-APA Group ((APA))
-GPT Group ((GPT))
-Deterra Royalties ((DRR))
-Metcash ((MTS))
-Amotiv ((AOV))
-Charter Hall Retail REIT ((CQR))
-Amcor ((AMC))

****

Shaw and Partners Research Monitor for the June quarter shows the broker’s ASX100 Large Caps Model Portfolio consists of the following ten members:

-Aristocrat Leisure ((ALL))
-Domino’s Pizza ((DMP))
-Evolution Mining ((EVN))
-James Hardie Industries ((JHX))
-Pilbara Minerals ((PLS))
-Qantas Airways ((QAN))
-ResMed ((RMD))
-Suncorp Group ((SUN))
-Treasury Wine Estates ((TWE))
-Xero ((XRO))

Preferred exposures among ’emerging companies’ (smaller caps) are:

-Abacus Storage King ((ASK))
-Bannerman Energy ((BMN))
-Black Cat Syndicate ((BC8))
-Global Lithium Resources ((GL1))
-Helloworld ((HLO))
-Metro Mining ((MMI))
-Retail Food Group ((RFG))
-Vista Group ((VGL))
-Tyro Payments ((TYR))
-Webjet ((WEB))

****

Stockbroker Morgans‘ list of Best Ideas currently consists of the following 32 ASX-listed companies:

Among Large Caps:
-Coles Group ((COL))
-CSL ((CSL))
-QBE Insurance ((QBE))
-Woodside Energy ((WDS))

Cyclicals:
-GQG Partners ((GQG))
-WH Soul Pattinson ((SOL))
-ALS Ltd ((ALQ))
-Beacon Lighting ((BLX))
-GUD Holdings ((GUD))
-Universal Store Holdings ((UNI))
-Elders ((ELD))
-Acrow ((ACF))
-Maas Group ((MGH))
-Dalrymple Bay Infrastructure ((DBI))
-Karoon Energy ((KAR))

Structural Growth:
-ResMed ((RMD))
-NextDC ((NXT))
-TechnologyOne ((TNE))
-Mach7 Technologies ((M7T))
-Camplify Holdings ((CHL))
-Superloop ((SLC))

Tactical Ideas:
-Treasury Wine Estates ((TWE))
-ClearView Wealth ((CVW))
-Inghams Group ((ING))
-Avita Medical ((AVH))
-Flight Centre Travel ((FLT))

Preferred Resources:
-South32 ((S32))
-Stanmore Resources ((SMR))

A-REITs:
-Cedar Woods Properties ((CWP))
-Dexus Industria REIT ((DXI))
-HomeCo Daily Needs REIT ((HDN))
-Qualitas ((QAL))

****

In December, Shaw and Partners released its 10 Best Ideas to benefit from the anticipated small caps’ revival in 2024.

The selected ten:

-AIC Mines ((A1M))
-Austin Engineering ((ANG))
-FireFly Metals ((FFM)), previously AuTeco (AUT)
-Chrysos ((C79))
-Gentrack Group ((GTK))
-Metro Mining ((MMI))
-MMA Offshore ((MRM))
-Peninsula Energy ((PEN))
-ReadyTech Holdings ((RDY))
-Silex Energy ((SLX))

****

Macquarie’s ASX Quality Compounders

The highest quality ‘compounders’ as identified by Macquarie quant research inside the ASX300:

-James Hardie ((JHX))
-Cochlear ((COH))
-REA Group ((REA))
-TechnologyOne ((TNE))
-ResMed ((RMD))
-Data#3 ((DTL))
-Pro Medicus ((PME))
-Jumbo Interactive ((JIN))
-PWR Holdings ((PWH))
-Netwealth Group ((NWL))
-Aristocrat Leisure ((ALL))
-Spark New Zealand ((SPK))
-Codan ((CDA))
-Clinuvel Pharmacauticals ((CUV))
-Redox ((RDX))

Given Macquarie’s research strong leaning on the past five years, with high barriers to match, the following 11 companies fell just outside the above list:

-Fisher & Paykel Healthcare ((FPH))
-Medibank Private ((MPL))
-Coles Group ((COL))
-The Lottery Corp ((TLC))
-Lovisa Holdings ((LOV))
-CSL ((CSL))
-IDP Education ((IEL))
-Pinnacle Investment Management ((PNI))
-ARB Corp ((ARB))
-Breville Group ((BRG))
-Johns Lyng ((JLG))

My research and All-Weather stock selections are 24/7 available for paying subscribers: https://fnarena.com/index.php/analysis-data/all-weather-stocks/

(Do note that, in line with all my analyses, appearances and presentations, all of the above names and calculations are provided for educational purposes only. Investors should always consult with their licensed investment advisor first, before making any decisions.)  

P.S. I – All paying members at FNArena are being reminded they can set an email alert for my Rudi’s View stories. Go to My Alerts (top bar of the website) and tick the box in front of ‘Rudi’s View’. You will receive an email alert every time a new Rudi’s View story has been published on the website. 

P.S. II – If you are reading this story through a third party distribution channel and you cannot see charts included, we apologise, but technical limitations are to blame.

FNARENA VIDEO

Dani and I have put together a video to explain our focus (and enthusiasm as investors) for GenAi, the fourth industrial revolution:

https://fnarena.com/index.php/fnarena-talks/2024/07/15/investing-in-genai-the-fourth-industrial-revolution/

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