Quiet Contrarian. Ep49: Trades for October 2023

Been a busy month. Starting to see some value reappearing in the market, and have been interested in some of the healthcare rout that seems to be ongoing.

Buys

Reckon Ltd – RKN.ASX – High quality company, lots of muddy waters due to the recent sale of their accounting division, a major part of their business, but despite all this, the forecast earnings are looking to be in line with past numbers. Putting them at an approx 9xPE, the lower end of their historical range. Going to buy in a decent position over the next 6 months.

Neometals Ltd – NMT.ASX – They have had a bit of a 1-2 punch recently: with failures come to an Offtake agreement for their Li mine and shutting down the partnership on their Vanadium Recovery project factory. I added a top up position on punch 1, so got hosed a bit more. My current feel is that they’re well run, and the fundamentals are still in place – though they could require a few wins before the market is willing to trust them again. Won’t be averse to building more of a position, but would like to see some wins first.

Resmed Inc – RMD.ASX – Not buying the Ozempic hype, they’re cheap on historic valuations, but not “cheap enough”. Bought some, will continue to add if price gets to more reasonable levels.

Hillgrove Resources Ltd – HGO.ASX – Cheap copper mine and mill restart, imminently producing, no extra funding necessary. If they do what they say, my ballpark EPS is about 6c by FY24-25, which puts them at a 1x PE. AS LONG AS they get to production with no hiccups. Keeping an eye for hiccups, but got my fingers crossed.

Sells

Juno – JNO.ASX – Received these stocks as a spin off from JMS. Nothing to see here. Just housekeeping clean out.