Thoughts on these 3 stocks.
Just wondering your thoughts on the following stocks and if you believe they are a buy at the current price and if you're looking at picking any of these up soon? SOL, WTC and WOW?
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Hi Scott,
Three stocks here that we have discussed of late hence good timing with the question as we consider if/when to pull the respective buy trigger (s):
- Washington Soul Patts (SOL) – the recent merger with Brickworks (BKW) is the most significant strategic shift in Soul Patts’ history. SOL has traditionally traded at a discount to its asset base, however, once the merger settles, we think this could change. The share price has come off the boil in recent weeks, down ~15% from a recent high of $45. Further selling could certainly occur as BKW shareholders rotate out of the stock; we currently have interest ~$36.
- WiseTetech Global (WTC) – we are firm believers in this cloud-based software logistics business which has also been under pressure of late as they start to bed down Augusts $US2.1bn acquisition of e2open, plus Richard White sold down a small portion of his significant holding. We like WTC into current weakness and can see ourselves increasing our position over the coming weeks.
- Woolworths Group Ltd (WOW) – If it could go wrong for/at WOW over recent years it has with the stock making fresh 6-year lows this week, it feels close to a low, but it has for months! We are unlikely to buy WOW until we decide to adopt a more defensive stance to stocks.
WTC is close, SOL & WOW we can be patient on.
