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NRW Holdings Ltd (NWH)

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Question asked 17/05/2025

NRW Holdings Ltd (NWH)

Hi I have been having a look at NWH and was expecting it to fall further today it did not , do you have a view on this currently after the fall on Thursday ? Also AX1 and LOV do you have a view on a sell price etc on these too . I think you guys a doing a great job it is why I have recently extended my membership , My only complaint is the mild TDS , our RBA ex Governor as did the US one got things wrong on inflation and rates for years , And debt levels needed drastic action as did mass migration , Trump is trying to fix these things while the media and the left fight him all the way , I won a heap with the bookies and also bought a lot of stocks after liberation day , so I am Trimming into strength and buying on the dips as per your recommendation and that is working for me . Regards Glenn G

Answer

Hi Glenn,

We love to address all feedback, positive and negative but not sure what “mild TDS” stands for….the only thing that came up was…Testosterone Deficiency Syndrome!! Either way we are simply investors trying to make a buck and help others along the way.

NRW Holdings Ltd (NWH) – this mining services stock has almost halved from its late 2024 high so there’s already plenty of bad news baked into the stock, including the risks around the SA State Govt. legislation on the Whyalla Steel works. The $113.3mn impairment provision for FY25 means they have pretty much taken a lot ofn the medicine on this already, and the stock had already fallen around 24%. The news that they may not be as secured a creditor as they thought under the bail-out scenario is not that earth shattering. Out gut feel is they will negotiate some of the payment, but not all, but we’re just speculating. It’s in the too hard basket for us for now, but we do think it’s a good business.
Ascent Group (AX1) – this footwear business is looking tired around $2 although the news that Frasers Group has entered into a 25-year retail agreement with AX1, raising its stake to 19.7%, is an interesting story. We are not enamoured with AX1 but the Frasers connection is likely to see the stock well supported into dips.
Lovisa (LOV) – If we were long LOV we would considering lightening our exposure around $30 after its strong bounce in recent weeks. The improving US-China relations potentially removes a headwind for LOV, but compeition in their patch is also increasing, and the trade situation is not all over yet, i.e. LOV operates a significant distribution hub in China, which plays a central role in its global supply chain, tariffs will weigh on margins.

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NRW Holdings Ltd (NWH)

LAST UPDATED 16/05/2025 18:09

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