Quiet Contrarian. Ep19: Trades for July 2021

Buys

Tassal Group – TGR.ASX – Have written about Tassal a few times. I think they’ve got ~10% base growth, with a 5% dividend, and a potential chaser of 2-3% efficiencies. On top of that the salmon price is rebounding, but this hasn’t caught up to the share price yet.

Sells

Mineral Resources – MIN.ASX – They’ve had a stellar run since the Covid lockdown. Iron Ore price has skyrocketed (consensus is that this is temporary until South America can sort their supply), and Lithium has rebounded (and has more to run, but isn’t their main game). EPS has gone from ~$1 pre-covid to >$6 now. Share price is currently sky high, latest uptick is based on speculation of changed regulations allowing significant increases in iron ore exports. Feel like this is a good nexus of everything going right and a reasonable time to get out. May be too early, but don’t want to risk getting caught downcycle like I did with gold last year.

Retech Tech Co. – RTE.ASX – I’m a bit disappointed in these guys. An online learning company that failed to skyrocket during Covid. This is feeling more and more like a dodgy Chinese company fleecing Australian investors. Not entirely sure this is right, but my gut is telling me to get out. So I’ve been slowly selling down my stake.