Quiet Contrarian. Ep 22: Trades for October 2021.

Another busy month, we’re getting close to reopening, with vaccines hitting the magical 80% target and the states setting roadmaps for reopening. I’m starting to get out of things that are linked to reopening, and I think are already overvalued.

Buys

No buys this month.

Sells

Shaver Shop Group – SSG.ASX – I initially bought these guys on a recent dip, as I was thinking of them as a consumer staples type of business (i.e. “Everyone needs razors no matter the economy”). But looking at them in a bit more detail, I think they’re actually more of a “small luxuries” shop. Selling massage devices etc. With this in mind, I feel reversion to an EPS of 5-6c post covid wouldn’t be unreasonable. I like the company. But as with all retail they’ve had a bumper year, with inflated numbers.

Fiducian Group Ltd – FID.ASX – These guys are trading at all time high valuations, which arguably they’ve earned. They will drop hard in a market correction, and have become a huge part of my portfolio. Derisking some of this by selling down. Otherwise they’re a great business, and worth holding.

Class Limited – CL1.ASX – I had a sell order in when the acquisition news came in and the price spiked. Sold out rather than wait for the acquisition.

IDP Education – IEL.ASX – These guys have a great business. But their valuation has gotten way ahead of itself. Selling down to derisk before reopening numbers come in properly.