Quiet Contrarian. Ep35: Trades for September 2022
Busy this month.
Buys
Genusplus Group Ltd – GNP.ASX – Doubled down on these guys.
Service Stream – SSM.ASX – Their EOFY result got hurt by weak profit due to a number of big one offs for the year. They have historically managed their finances well, and have the chance to grow if they can increase the margins in the Lendlease services acquisition. Trusting in their quality and doubling down.
Kalium Lakes Ltd – KLL.ASX – Participated in the SPP. Though not entirely sure whether this was a good idea. Recently discovered a previous SOP company went bust due to issues with the evaporation ponds, which was also Kalium’s problem in the latest production upset. Bit concerning if they haven’t learned from the mistakes of the past.
Sells
Magellan Financial – MFG.ASX – This is a strong case for why I should learn to set a stop loss. I feel like these guys will be back. But it won’t be for a while. The bear case is that they’re too old school and their best days are behind them. In either case, not the time to hold them. Should have gotten out alot earlier.
Fiducian Group Ltd – FID.ASX – Sold down for the same reasons as I should have got out of MFG. Fund managers are leveraged to the market. If the market goes down they will suffer the 1-2 punch of declining assets AND fund withdrawl. Due to their different clientele base to MFG (running through fund managers, so will probably be a more stable demographic than MFGs ETF based broad market x-section), they will be buffered a bit to this. But the risk is there.
Pilbara Minerals Ltd – PLS.ASX – Primarily driven by the extreme Li pricing, which has lots of tailwinds. Though their growth trajectory isn’t as interesting as some of the other players at the moment (in terms of pure tonnes of Li mined). Sold down to take some risk off the table.
ETFs Ultra Short Nasdaq 100 Hedge Fund – SNAS.ASX – Not used to holding something with such high beta. Terrifying. Got out after a month for a reasonable profit. Didn’t enjoy holding it.
