Cut the weeds and water the flowers

Hi Charles, we hear you!

Some of the moves at an individual stock level has been extreme, with the most recent reporting season being the most volatile in recent history then along came tariffs. The last few weeks have been exhausting, it’s a good job we enjoy the challenge, and know that these times of greater volatility create the opportunity for returns in the future, but we’re certainly being tested.

Moving onto the two stocks you highlighted:

Johns Lyng Group (JLG): this non-residential construction services business has been under intense pressure since its downgrade in February, this is one weed unlikely to be growing in our garden too much longer as better-quality companies get caught up in the “crowded trade” unwind.

• If we had no position in JLG we would not be buying here.

Paladin (PDN): We listened with intent to a uranium conference on Friday, trying not to be too myopic. This conference included a presentation by PDN which is available on its company page. In essence we don’t believe the positive uranium and PDN thematic is wrong, just our timing, and a little bad luck – Boss Energy (BOE) is up +4% in 2025 but it did not have to contend with 1 in 50 year floods, water supply issues and variability in stockpile quality.

• If we had no position in PDN we would be accumulating the stock, though a safer way the play the thematic would be though an ETF such as URNM.

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Johns Lyng Group Ltd (JLG)

LAST UPDATED 28/03/2025 20:22

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Johns Lyng Group Ltd (JLG)

LAST UPDATED 28/03/2025 20:22