The first week of reporting season has already thrown up a few grenades with Isentia and Navitas both missing expectations. In this short video the panel discuss sectors and stocks that they like and how they handle a holding that gets crushed after missing investor expectations.
Panel: Matthew Kidman from Centennial Funds is joined by Ben Rundle from NAOS, and Sam Granger from Totus Capital.
- As a whole reporting season should be ok but most of the growth is likely to be driven by the resources sector.
- Sectors that have structural tailwinds should report quite well given the strong activity on the east coast. Ben Rundle likes Adelaide Brighton (ASX:ABC) as an exposure to this sector.
- Small caps have already delivered some bombs with Isentia and Navitas. Sam Granger says he is cautious of companies that have had operational issues in the past 18 months.
- If your holding gets crushed you should avoid getting anchored to the previous share price.
- On the upside, if a holding delivers a great result this can lead to good momentum for an extended period of time.
- Both speakers share a stock they think can surprise on the upside