The Market Matters Emerging Companies Portfolio targets small & mid capitalisation emerging stocks (ex-100) that show strong underlying growth characteristics – Click here to view
The portfolio gave back some ground in the week posting a loss of -3.70% while cash sits at just under 9%. For the month of September, the portfolio was strong adding +5.91% in a market that went backwards and after the first quarter of the new FY, the portfolio is up 9.84% – another pleasing result to date.
The main detractors for the week were Adore Beauty (ABY) and Calix (CXL), falling more than 10% each however that was partially offset by Resolute (RSG) finding its feet to jump 12.66% with gold stocks finding support. Recent volatility has thrown up some opportunities in the emerging companies space, a quick run-down of some changes on the horizon for this portfolio:
- Buy Pilbara Minerals (PLS) – now 25% below all-time highs, we have been looking for an opportunity to add a quality Lithium company to this portfolio and Pilbara (PLS) is our top pick in this space.
- Buy Dubber (DUB) – we covered DUB last week (click here) looking for an opportunity into weakness and this stock is also off around 25% from all-time highs, the outlook for the company remains solid and with a quarterly update in a matter of weeks we see this pullback as a chance to buy DUB.
- Sell Resolute (RSG) – to fund these purchases we are likely to cut our weak holding in Resolute (RSG). While it’s clawed back some of the lost ground recently we better upside in the stocks above .
