Quiet Contrarian. Ep 16: Trades for May 2021

Busy month.

Buys

Appen Limited – APX.ASX – Appen has been hammered recently, with the recent budget cuts. The price was hit hard when the CEO made some unclear comments about their business at conference. There are still a number of uncertainties about how well the business will perform in the coming years.

NRW Holdings – NWH.ASX – Cyclical play. The macro conditions are extremely good for the mining and construction sectors, with large amounts of stimulus being pumped into infrastructure and construction, this is expected to rise over the next year or two. NRW Holdings recently had a price pullback due to reduced margins due to issues getting labour. A little bit risky, as they’re taking on some of the risk for the mining companies becoming “capital light”.

Mader Group – MAD.ASX – Same cyclical play as NWH.ASX. Newer company than NWH, but in a slightly lower risk position in the mining services sector. Provide high quality labour hire in a niche position in the market.

Juno – JNO.ASX – Iron ore explorer. Actually received as part of a spin-off distribution from Jupiter mines.

Sells

Gale Pacific – GAP.ASX – Sold down the rest of my holding.

Silver Mines Limited – SVL.ASX – This was a terrible buy, at the peak of my “speculative fever” during the Gamestop/reddit idiocy. Got out at a loss. Lesson learned – if you’re not ahead of the fever, you’re left holding the bag.