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26 Sep
ASX:HUB
- Pendal Group highlights the strong client satisfaction with the HUB24 platform.
- HUB24 is recognized as a disruptor and enabler in the market.
- It is well-positioned in the thematic growth of defined contributions in Superannuation Australia.
- The product is considered superior to that of traditional incumbents.
- Incumbents are described as disorganized, with poor incentive and management structures.
- HUB24 is gaining market share through both market growth and ongoing super contributions.
- Valuation remains a key question, but the overall market dynamics are viewed positively.
- There is a large addressable market with low penetration rates.
- Pendal Group notes good execution and a very good product offering from HUB24.
26 Sep
ASX:360
- Blackwattle Investment Partners continues to hold a positive outlook on Life360 Inc.
- The business is approaching 100 million users globally, with significant growth potential.
- Currently, only 15% penetration in the US market indicates room for expansion.
- Life360's model relies on a large free user base that drives referrals and family engagement.
- Conversion of free users to paid subscribers occurs at a low cost, primarily through email or mobile contact.
- The business demonstrates immediate profitability benefits, distinguishing it from many tech peers.
- Life360 is transitioning into a high-quality, top-quartile business from its earlier stages.
- Overall, Blackwattle Investment Partners believes in the enduring growth opportunity for Life360.
26 Sep
ASX:360
- Pendal Group maintains a positive outlook on Life360 Inc.
- The company operates in a large market with significant growth potential.
- Life360 has reached a point of being self-funding, marking a critical inflection for growth stocks.
- It generates multiple revenue sources, including app subscriptions and advertising revenue.
- The management team is capable, which is crucial for execution in growth companies.
- Pendal Group focuses on the company’s ability to execute and benchmark management against its own milestones.
26 Sep
ASX:SEK
- Blackwattle Investment Partners has renewed interest in Seek over the past year, especially in the last six months.
- Seek is noted as the most cyclical of the Australian classifieds businesses, facing challenges over the past two to three years.
- Despite headwinds from classified volumes, Seek has maintained strong pricing power.
- The recent investment program has improved technological structure, allowing faster rollout in Australia and Asia.
- Valuation has become more reasonable after a challenging period, attracting Blackwattle's interest.
- Seek is still not widely favored, despite improved performance in the last six months.
- The company trades at a favorable mid-teens EBITDA multiple excluding the Seek Growth Fund's valuation.
- Seek owns approximately 80% of $2 billion in investments, presenting an opportunity for value realization in the next 12 to 24 months.
- Blackwattle anticipates improved top-line growth, margin expansion, and solid cash generation for Seek.
- The overall outlook for Seek's prospects over the coming years is positive.
26 Sep
ASX:ZIP
- Pendal Group initiated a position in Zip Co Ltd due to its strong growth potential in the buy-now-pay-later sector.
- The fund manager appreciates Zip's transition from a troubled past to a stable Australian business and a rapidly expanding US market.
- Zip's US operations are capital-light and highly profitable, allowing for quick capital turnover.
- There is significant growth potential in the US buy-now-pay-later market, which remains underpenetrated compared to other OECD countries.
- Zip targets a specific demographic that lacks access to traditional credit options, focusing on essential spending rather than discretionary purchases.
- The fund manager notes improved credit risk management and that Zip is now self-funding, aligning with growth stock criteria.
19 Sep
ASX:BBN
- 1851 Capital continues to hold a positive outlook on Baby Bunting Group Ltd.
- Mark Teperson, the new CEO, has been in the role for two years and is implementing effective strategies.
- The company has refurbished three stores, resulting in a revenue increase of over 25% in those locations.
- Plans are in place to refurbish an additional 10 to 12 stores in the current financial year.
- Baby Bunting is rolling out smaller format stores and expanding its range of exclusive and private label products.
- The share price has already increased by 50% following these positive developments.
- 1851 Capital believes Baby Bunting has the potential for further growth.
19 Sep
ASX:EML
- Forager Funds acknowledges EML Payments Ltd's littered history of challenges.
- The fund continues to hold its position in the stock.
- Despite past issues, there is a sense of optimism about the company's future.
- A new management team is in place, aiming to improve performance.
- The management has indicated they can keep the cost base flat while increasing revenue.
- This strategy could lead to a substantial change in profitability over the next few years.
- Forager believes this potential is not yet recognized by the market.
- The fund thinks there is a viable path for the company to deliver on its promises.
19 Sep
ASX:SKS
- 1851 Capital continues to hold SKS Technologies Group Ltd due to strong performance, with share prices rising from 40 cents to $3 over the last 18 months.
- The company operates primarily in the data centre space, which now constitutes over 70% of their order book, a significant increase from zero four years ago.
- SKS has established a robust business model based on data centre work, positioning itself early in a growing trend.
- The current order book stands at $200 million, with a tender pipeline of $500 million, indicating substantial future opportunities.
- SKS Technologies trades at a PE ratio of 16, reflecting its profitability.
- Earnings growth is projected at over 30%, suggesting significant upside potential as the data centre thematic evolves.
16 Sep
ASX:ALC
- Alcidion delivers an enterprise health platform centered on the Miya Precision solution, enhancing clinical data aggregation and decision support.
- Salter Brothers initiated a position in November 2023 at an average entry price of $0.055, with Alcidion being the top contributor for the SB2 Fund in FY25.
- FY25 saw a 10% revenue increase to $40.8m, with underlying EBITDA turning positive at $5.1m, an improvement of $8.5m from FY24.
- The company ended FY25 with a strong cash position of $17.7m and no debt.
- Entering FY26, Alcidion has $34.0m of contracted and renewal revenue already secured, its best starting position ever.
- Historically, Alcidion adds an average of $10.6m in-period revenue annually, indicating potential for growth.
- Aligned with public sector procurement cycles, Alcidion has a credible pathway for incremental wins beyond the contracted revenue.
- Alcidion’s strategic dual positioning as both a modular platform and a comprehensive solution broadens its market reach and accommodates diverse budgets.
- With recurring revenue growth, record contract momentum, and restored profitability, Alcidion is well-positioned for continued growth through FY26.
15 Sep
ASX:DUG
- 1851 Capital continues to hold a position in DUG Technologies, a small technology company.
- The company has been listed for around five years and has shown moderate performance since then.
- A significant development for DUG Technologies is their product, Elastic MP-FWI, which enhances seismic data interpretation for oil and gas companies.
- This technology is crucial as it helps companies make informed drilling decisions, potentially saving them hundreds of millions annually.
- Elastic MP-FWI now constitutes over half of the company’s order book, reflecting its growing importance.
- In the past eight months, DUG Technologies has increased its order book by more than $70 million.
- The company trades at an attractive PE ratio of 30, considering its strong growth outlook.
- Earnings are projected to grow at double-digit rates, indicating a promising future for the company.
- DUG Technologies is considered off the radar by many investors, despite its strong prospects and growth potential.
15 Sep
ASX:NAN
- Forager Funds continues to hold Nanosonics Ltd. in their portfolio due to its evolving business prospects.
- The company has experienced a longer-than-expected timeline to profitability since its founding in 2000.
- Nanosonics generated its first revenue in 2010 and has since scaled rapidly, focusing on disinfecting hospital equipment.
- The business is currently profitable, indicating strong operational performance.
- Significant investment is being directed towards developing a new product for disinfecting endoscope equipment.
- US regulatory approvals have caused delays, but revenue generation from the new product is anticipated within the year.
- Growth projections remain positive, with expectations for rapid expansion through 2027 and 2028.
- Forager Funds sees substantial potential in Nanosonics’ future product categories, justifying their ongoing investment.
15 Sep
ASX:XRO
- Xero Ltd is an accounting software provider listed on the ASX since 2012.
- Originally listed in New Zealand in 2007 with a $15 million IPO.
- Current market capitalization stands at $26 billion.
- Xero has achieved a 60% market share in Australia, surpassing traditional competitors like MYOB and Reckon.
- The company has successfully expanded its product offerings globally.
- 1851 Capital views Xero as one of the best innovators on the ASX.
- Continued confidence in Xero's growth trajectory and market position.
12 Sep
ASX:CAT
- Forager Funds has reduced their weighting in Catapult Sports Ltd from 10% to 3% of their portfolio.
- Despite the reduction, Forager Funds believes in the company's potential for significant growth.
- The incremental economics of Catapult Sports' business model are viewed as very strong.
- A new management team has been implemented, addressing previous profitability issues.
- Management has committed to delivering 50% profitability on every additional dollar of revenue.
- Catapult Sports has consistently met their profitability targets.
- The company is expanding through innovation, including a recent acquisition of a gym business.
- There are numerous opportunities for further software integration within professional sports teams.
12 Sep
ASX:ERD
- 1851 Capital has invested in EROAD Ltd, a New Zealand-based technology company.
- EROAD focuses on transport analytics and operates in New Zealand, Australia, and the US.
- Current regulatory tailwinds are expected to drive profitability.
- The US government is implementing road user charges for all vehicles, presenting a growth opportunity.
- EROAD already has a contract for commercial vehicles in New Zealand, positioning them favorably for future contracts.
- In Australia, potential road user charges for EVs offer another significant opportunity.
- With a market cap of $400 million, EROAD has recently become cashflow positive.
- 1851 Capital believes there is further upside potential for EROAD.
12 Sep
ASX:PLT
- Forager Funds continues to hold shares in Plenti Group Ltd.
- Plenti operates as a non-bank lender, gaining market share from major banks.
- The company's efficiency is driven by its superior software platform.
- Historically, Plenti has been constrained by its asset-heavy business model.
- Partnership with NAB for auto-lending marks a significant opportunity.
- NAB utilizes Plenti's platform, showcasing its effectiveness.
- The next 12 months are crucial for validating Plenti's business model.
- Plenti appears reasonably priced based on current operations.
12 Sep
ASX:ZIP
- Zip is a buy.
- It is the largest position in the fund at the moment.
- CEO Cynthia Scott has effectively cut costs and sold underperforming assets.
- The business is refocused on the US market.
- The US now accounts for 80% of the company's earnings.
- Buy-now-pay-later is still in early stages in the US, representing only 2% of e-commerce sales.
- In comparison, it is 15% in Australia.
- Bad debts are under control.
- TTV is growing at over 45%.
- Recent partnerships with Google and Stripe may accelerate growth.
- Despite recent share price gains, there is significant upside potential for Zip.
10 Sep
ASX:AAL
- Alfabs share price experienced a notable uplift both ahead of and following its full year results, reversing a period of drift due to limited news flow.
- The company reported a positive update in August, growing their EBITDA by 39% to $27.6m from $19.8m in PCP.
- Alfabs earnings outlook remains strong with a full year contribution of Malabar assets to be recognised in FY26.
- A promising growing engineering pipeline supports future growth.
- The company continues to invest growth capital in their hire fleet to capture further inbound opportunities.
- Alongside the full year results, Alfabs increased their second half fully franked dividend to 1.7 cents from 1.5 cents in the first half of 2025.
10 Sep
ASX:NWH
- Plato Investment Management recognizes NRW Holdings Limited as a mining service company, which operates in a variable and cyclical sector.
- Despite the cyclical nature, Plato Investment Management notes that NRW's customer base includes large clients who are increasing their investment activities.
- NRW Holdings Limited currently has a robust order book, indicating strong future demand.
- As a result, Plato Investment Management believes that NRW's earnings outlook is solid for the next few years.
10 Sep
ASX:NWH
- Atlas Funds Management continues to evaluate opportunities in the mining services sector.
- Investment thesis focuses on the volatility of mining services and contracting companies.
- Experience shows that these companies often do not provide consistent dividend yields.
- Past ownership of similar companies has led to unexpected downturns.
- Contracts need to be renewed every few years, adding to risk.
- Overall, Atlas Funds Management finds the sector too volatile for stable investment.
10 Sep
ASX:PXA
- Datt Capital has recently increased their position in PEXA Group Ltd.
- The decision is driven by stronger management discipline.
- Prudent capital stewardship is also a key factor in the investment thesis.
- There is imminent UK expansion optionality that is seen as a catalyst for a re-rate.
- Datt Capital believes these factors will contribute to positive performance over the medium-term.
10 Sep
ASX:SDR
- Seneca Financial Solutions acquired Siteminder Ltd at the end of July.
- It is a growing, recurring revenue software business.
- The market had previously lost confidence due to weak cash flow.
- After thorough analysis, revenue growth is likely to be re-accelerating.
- There is potential for upside surprise on cash flow.
- Reported $14.3m EBITDA, leading to a stock increase of up to 31% on the day of the announcement.
10 Sep
ASX:SYL
- Symal Group Ltd is a civil construction and equipment hire business.
- Salter Brothers has increased their conviction in the holding following a strong trading update and outlook in August.
- In FY25, Symal modestly outperformed their prospectus guidance by 3.7%, achieving an EBITDA of $106.1m.
- This result is particularly strong given the broadly soft civil construction industry with widespread project delays.
- Guidance for FY26 is $115-125m EBITDA, with strong contract wins and Work in Hand increasing to $1.76bn, up 35% on PCP.
- Salter Brothers maintains high conviction in SYL, which trades at an attractive valuation relative to peers.
- This view is supported by a strong pipeline and potential for additional acquisitions, backed by Symal’s strong balance sheet.
- Symal is an Australian founder-led business providing construction contracting, equipment hires, material sales, recycling, and remediation services.
- The company has a strong track record of organic growth and effective risk management through a vertically integrated operating model.
- Salter Brothers has built a meaningful position in Symal, making it a top 5 holding as of 31/8/2025.
- Symal’s civil construction segment involves civil and private infrastructure, energy, renewables, and complex engineering.
- This division accounted for $714m revenue and $58m normalised EBITDA in FY25.
- The plant and equipment hire business provides heavy machinery, with 50% of equipment hired externally and 50% internally.
- This division accounted for $184m in revenue and $44m in normalised EBITDA in FY25.
- SYCLE is a new segment focused on processing and recycling construction materials, forecasted to enhance vertical integration.
- Symal is well positioned to outperform with good execution of contracted work and a growing pipeline, all while trading at an attractive valuation.
09 Sep
ASX:ANN
- Allan Gray continues to hold a positive view on Ansell Ltd, highlighting its unique characteristics in the market.
- Ansell is described as a "boring" investment, which can be favorable for long-term stability.
- The company has a lower share count now than it did 15 years ago, indicating a history of buying back shares.
- Steady capital allocation practices set Ansell apart from other companies in the sector.
- CEO Neil Salmon is recognized as a methodical thinker and a capable capital allocator.
- With strong leadership, the majority of investment success is believed to be secured.
09 Sep
ASX:BOL
- Boom Logistics reported revenue growth of 2% to $264 million.
- Underlying NPAT stood at $9.3 million.
- EPS increased by 38% to 22 cents.
- Strengths include strong profit growth and exposure to renewable and infrastructure spending.
- A small dividend has been reinstated.
- A $4 million buyback represents approximately 7.3% of shares.
- Management is expected to complete the buyback in full.
- Despite modest revenue growth, seven profit upgrades have been delivered in a row.
- The company remains reasonably priced.
- Collins St Asset Management continues to hold due to these factors.
09 Sep
ASX:DMP
- Ten Cap highlights the potential of turnaround stories, particularly in the case of Domino’s Pizza.
- The company has faced shareholder criticism due to its slow progress in improving performance.
- Domino’s has recognized the need to close unmarketable stores and halt excessive store rollouts.
- Improving franchisee profitability is seen as key to future store expansions.
- With earnings expected to recover from low margins, there is potential for profits to double.
- Ten Cap continues to hold its position in Domino’s, anticipating positive changes ahead.
09 Sep
ASX:GMG
- Wilson Asset Management highlights Goodman Group's transition from traditional warehouses to data centre development.
- The stock is currently trading at its lowest premium for the market in five years.
- Anna Milne, deputy portfolio manager, describes Goodman Group as a safe hold in volatile times.
- There is a strong belief that the future will run on data, reinforcing the company's relevance.
09 Sep
ASX:HUM
- Collins St Asset Management continues to hold Humm Group Ltd due to its resilient business model.
- Humm Financial reported revenue of $666 million (+8%) and underlying NPAT of $55 million (flat).
- The stock trades at approximately 5.8x PE, indicating potential value.
- Strong liquidity with undrawn facilities and $125 million cash against a $320 million market cap.
- Possesses a substantial franking credit balance.
- Stable net interest margins contribute to the overall resilience of the business.
- Concerns regarding governance, particularly with founder and chairman Andrew Abercrombie's lowball privatization offer of ~59c/share.
- This offer is seen as opportunistic and disappointing, especially given Abercrombie’s previous rejection of Latitude Financial’s bid as too low.
09 Sep
ASX:SWM
- Seven West Media reported a revenue decline of 4% to $1.59 billion.
- Underlying NPAT was $57 million, with an EPS of 3.7 cents.
- It trades at a low multiple of ~3.9x PE based on FY25 numbers, compared to peers at roughly double.
- Positives include reduced debt, improved liquidity, controlled costs, and strong digital growth.
- The second half showed profit growth for the first time in 3–4 years, indicating advertising revenue recovery.
- This growth challenges the notion of a structural decline.
- Negatives include that no dividend has been reinstated yet, although management may do so in FY26.
- Collins St Asset Management continues to hold because they see the valuation as extremely cheap with meaningful upside if re-rated.
09 Sep
ASX:SKC
- SkyCity’s revenue fell 5% to NZ$825 million, with NPAT of NZ$71 million, exceeding consensus expectations.
- Collins St Asset Management views this performance positively, considering the tough conditions including regulatory costs, higher compliance, and New Zealand’s recession.
- Management announced a NZ$240 million capital raise, which Collins St strongly opposes as unnecessary and dilutive given the company’s high-quality, monopoly assets.
- Major shareholder Allan Gray publicly criticized the capital raise.
- On a positive note, the NZ International Convention Centre (costing NZ$700m) is set to open soon, expected to attract millions of visitors and benefit the broader complex.
- Collins St notes early success with carded play in New Zealand.
- Despite management missteps, Collins St Asset Management sees SkyCity as deep value.
09 Sep
ASX:SOL
- Ausbil views Soul Patts as the market’s next Berkshire Hathaway.
- The merger with Brickworks simplifies the structure and unlocks index buying.
- This transformation positions Soul Patts as a $14 billion investment house.
- It is beginning to resemble investment giants like Berkshire Hathaway and Blackstone.
- Ausbil highlights it as a unique can-invest-through-the-cycle vehicle.
- The company offers liquidity and potential for a higher valuation.
08 Sep
ASX:NCK
- Bennelong Australian Equity Partners continues to hold a positive view on Nick Scali.
- Nick Scali is regarded as a standout in the retail sector.
- The passion and dedication of Anthony Scali towards the business is evident.
- The company is expanding its footprint in the UK by acquiring Fabb Furniture.
- Stores are being rebranded under the Nick Scali name.
- Recent visits to the rebranded stores have shown them to be impressive and distinct from competitors.
08 Sep
ASX:TPW
- Temple & Webster retains a position in the portfolio.
- Bennelong Australian Equity Partners admires the company’s ability to grow 20 to 30 percent on the top line even when the broader furniture market was flat to declining.
- Looking forward, the company has good leverage to an improving backdrop for housing.
- It boasts incredible management and very clean financials.
- The company has over $140 million of cash on the balance sheet.
- Bennelong Australian Equity Partners sees a sensible growth strategy in place.
04 Sep
ASX:SNL
- Supply Network is recognized as a truck and bus parts supplier.
- It is considered very well run and operates below radar.
- Supply Network provides an essential service in its industry.
- Consensus forecasts indicate 13 per cent organic compound growth over the next three years.
- The company boasts global industry-leading margins.
- Return on capital is reported to be well over 20 per cent.
04 Sep
ASX:ZIP
- Eiger Capital believes that Zip Co has significant growth potential in the United States.
- The company is attracting customers who prefer its features over traditional banks.
- This customer base includes those who do not fit traditional bank criteria.
- Growth in the gig economy is expanding this customer segment.
- Buy now, pay later is becoming a popular choice for many consumers.
- Zip is guiding for over 35% volume growth this financial year.
- Increased margins are also anticipated, supporting the overall investment thesis.
31 Aug
ASX:A2M
- A2 Milk (A2M) delivered a strong FY25 result.
- Capital return was a key highlight of the results.
- Successful streamlining of its long-awaited supply chain was achieved.
- These developments strengthen the company’s operating platform.
- Reinforces Ten Cap's conviction in A2 Milk’s growth trajectory.
31 Aug
ASX:AFL
- Hurdle Rate observes a 27% growth in revenue for AF Legal Group during FY2025, with 11% organic growth.
- Normalisations such as legal defence fees and software implementation costs were elevated, as previously noted.
- The adoption of Aderant is projected to incur an additional $1.2m cost in FY2026, treated as an expense.
- Despite these costs, the indicative ROE using normalised profit has improved from 8% to 11%, indicating increased capital efficiency.
- There are still some run-rate earnings from Criminal Law not reflected in the accounts.
- Momentum in growth is confirmed to have continued into July and August, bolstering confidence in future growth.
31 Aug
ASX:ARB
- ARB Corporation Ltd has shown strong sales growth in its international division.
- SG Hiscock & Company recognizes ARB as a dominant brand in the 4WD auto parts accessories market in Australia, established over 50 years.
- The company is strategically expanding into the United States and other international markets.
- ARB has successfully acquired a 50% shareholding in a major US auto retail business.
- Strong partnerships with FORD and Toyota enhance ARB's market position.
- ARB's online capabilities and retail footprint are well-positioned for future growth.
- SG Hiscock & Company believes ARB is set for a long runway of growth in the larger US market.
31 Aug
ASX:ADH
- Ten Cap has increased its position in Adairs (ADH), aligning with their strategy focused on domestic cyclicals.
- Both Adairs and its peer demonstrate disciplined cost control.
- They maintain solid balance sheets, which is a positive indicator for stability.
- There is potential for operating leverage as market demand begins to stabilize.
31 Aug
ASX:AMX
- Firetrail Investments notes that East Coast gas producer Amplitude Energy has underperformed, with shares trading flat-to-down post FY25 results.
- Conservative production guidance has been identified as a key factor affecting performance, despite management's strong operational delivery track record.
- Despite recent strong share price performance, Firetrail Investments continues to see ~50% upside in Amplitude.
- The core business is projected to generate free cash flow of >$200m per annum for the next 7-8 years against an enterprise value of ~$900m.
- The Otway growth project has the potential to deliver an internal rate of return of over 30% and significant production growth.
- Additional opportunities such as plant debottlenecking, gas storage, and third-party tolling of gas could lead to positive surprises.
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26 Sep
ASX:HUB
- Pendal Group highlights the strong client satisfaction with the HUB24 platform.
- HUB24 is recognized as a disruptor and enabler in the market.
- It is well-positioned in the thematic growth of defined contributions in Superannuation Australia.
- The product is considered superior to that of traditional incumbents.
- Incumbents are described as disorganized, with poor incentive and management structures.
- HUB24 is gaining market share through both market growth and ongoing super contributions.
- Valuation remains a key question, but the overall market dynamics are viewed positively.
- There is a large addressable market with low penetration rates.
- Pendal Group notes good execution and a very good product offering from HUB24.
26 Sep
ASX:360
- Blackwattle Investment Partners continues to hold a positive outlook on Life360 Inc.
- The business is approaching 100 million users globally, with significant growth potential.
- Currently, only 15% penetration in the US market indicates room for expansion.
- Life360's model relies on a large free user base that drives referrals and family engagement.
- Conversion of free users to paid subscribers occurs at a low cost, primarily through email or mobile contact.
- The business demonstrates immediate profitability benefits, distinguishing it from many tech peers.
- Life360 is transitioning into a high-quality, top-quartile business from its earlier stages.
- Overall, Blackwattle Investment Partners believes in the enduring growth opportunity for Life360.
26 Sep
ASX:360
- Pendal Group maintains a positive outlook on Life360 Inc.
- The company operates in a large market with significant growth potential.
- Life360 has reached a point of being self-funding, marking a critical inflection for growth stocks.
- It generates multiple revenue sources, including app subscriptions and advertising revenue.
- The management team is capable, which is crucial for execution in growth companies.
- Pendal Group focuses on the company’s ability to execute and benchmark management against its own milestones.
26 Sep
ASX:SEK
- Blackwattle Investment Partners has renewed interest in Seek over the past year, especially in the last six months.
- Seek is noted as the most cyclical of the Australian classifieds businesses, facing challenges over the past two to three years.
- Despite headwinds from classified volumes, Seek has maintained strong pricing power.
- The recent investment program has improved technological structure, allowing faster rollout in Australia and Asia.
- Valuation has become more reasonable after a challenging period, attracting Blackwattle's interest.
- Seek is still not widely favored, despite improved performance in the last six months.
- The company trades at a favorable mid-teens EBITDA multiple excluding the Seek Growth Fund's valuation.
- Seek owns approximately 80% of $2 billion in investments, presenting an opportunity for value realization in the next 12 to 24 months.
- Blackwattle anticipates improved top-line growth, margin expansion, and solid cash generation for Seek.
- The overall outlook for Seek's prospects over the coming years is positive.
26 Sep
ASX:ZIP
- Pendal Group initiated a position in Zip Co Ltd due to its strong growth potential in the buy-now-pay-later sector.
- The fund manager appreciates Zip's transition from a troubled past to a stable Australian business and a rapidly expanding US market.
- Zip's US operations are capital-light and highly profitable, allowing for quick capital turnover.
- There is significant growth potential in the US buy-now-pay-later market, which remains underpenetrated compared to other OECD countries.
- Zip targets a specific demographic that lacks access to traditional credit options, focusing on essential spending rather than discretionary purchases.
- The fund manager notes improved credit risk management and that Zip is now self-funding, aligning with growth stock criteria.
19 Sep
ASX:BBN
- 1851 Capital continues to hold a positive outlook on Baby Bunting Group Ltd.
- Mark Teperson, the new CEO, has been in the role for two years and is implementing effective strategies.
- The company has refurbished three stores, resulting in a revenue increase of over 25% in those locations.
- Plans are in place to refurbish an additional 10 to 12 stores in the current financial year.
- Baby Bunting is rolling out smaller format stores and expanding its range of exclusive and private label products.
- The share price has already increased by 50% following these positive developments.
- 1851 Capital believes Baby Bunting has the potential for further growth.
19 Sep
ASX:EML
- Forager Funds acknowledges EML Payments Ltd's littered history of challenges.
- The fund continues to hold its position in the stock.
- Despite past issues, there is a sense of optimism about the company's future.
- A new management team is in place, aiming to improve performance.
- The management has indicated they can keep the cost base flat while increasing revenue.
- This strategy could lead to a substantial change in profitability over the next few years.
- Forager believes this potential is not yet recognized by the market.
- The fund thinks there is a viable path for the company to deliver on its promises.
19 Sep
ASX:SKS
- 1851 Capital continues to hold SKS Technologies Group Ltd due to strong performance, with share prices rising from 40 cents to $3 over the last 18 months.
- The company operates primarily in the data centre space, which now constitutes over 70% of their order book, a significant increase from zero four years ago.
- SKS has established a robust business model based on data centre work, positioning itself early in a growing trend.
- The current order book stands at $200 million, with a tender pipeline of $500 million, indicating substantial future opportunities.
- SKS Technologies trades at a PE ratio of 16, reflecting its profitability.
- Earnings growth is projected at over 30%, suggesting significant upside potential as the data centre thematic evolves.
16 Sep
ASX:ALC
- Alcidion delivers an enterprise health platform centered on the Miya Precision solution, enhancing clinical data aggregation and decision support.
- Salter Brothers initiated a position in November 2023 at an average entry price of $0.055, with Alcidion being the top contributor for the SB2 Fund in FY25.
- FY25 saw a 10% revenue increase to $40.8m, with underlying EBITDA turning positive at $5.1m, an improvement of $8.5m from FY24.
- The company ended FY25 with a strong cash position of $17.7m and no debt.
- Entering FY26, Alcidion has $34.0m of contracted and renewal revenue already secured, its best starting position ever.
- Historically, Alcidion adds an average of $10.6m in-period revenue annually, indicating potential for growth.
- Aligned with public sector procurement cycles, Alcidion has a credible pathway for incremental wins beyond the contracted revenue.
- Alcidion’s strategic dual positioning as both a modular platform and a comprehensive solution broadens its market reach and accommodates diverse budgets.
- With recurring revenue growth, record contract momentum, and restored profitability, Alcidion is well-positioned for continued growth through FY26.
15 Sep
ASX:DUG
- 1851 Capital continues to hold a position in DUG Technologies, a small technology company.
- The company has been listed for around five years and has shown moderate performance since then.
- A significant development for DUG Technologies is their product, Elastic MP-FWI, which enhances seismic data interpretation for oil and gas companies.
- This technology is crucial as it helps companies make informed drilling decisions, potentially saving them hundreds of millions annually.
- Elastic MP-FWI now constitutes over half of the company’s order book, reflecting its growing importance.
- In the past eight months, DUG Technologies has increased its order book by more than $70 million.
- The company trades at an attractive PE ratio of 30, considering its strong growth outlook.
- Earnings are projected to grow at double-digit rates, indicating a promising future for the company.
- DUG Technologies is considered off the radar by many investors, despite its strong prospects and growth potential.
15 Sep
ASX:NAN
- Forager Funds continues to hold Nanosonics Ltd. in their portfolio due to its evolving business prospects.
- The company has experienced a longer-than-expected timeline to profitability since its founding in 2000.
- Nanosonics generated its first revenue in 2010 and has since scaled rapidly, focusing on disinfecting hospital equipment.
- The business is currently profitable, indicating strong operational performance.
- Significant investment is being directed towards developing a new product for disinfecting endoscope equipment.
- US regulatory approvals have caused delays, but revenue generation from the new product is anticipated within the year.
- Growth projections remain positive, with expectations for rapid expansion through 2027 and 2028.
- Forager Funds sees substantial potential in Nanosonics’ future product categories, justifying their ongoing investment.
15 Sep
ASX:XRO
- Xero Ltd is an accounting software provider listed on the ASX since 2012.
- Originally listed in New Zealand in 2007 with a $15 million IPO.
- Current market capitalization stands at $26 billion.
- Xero has achieved a 60% market share in Australia, surpassing traditional competitors like MYOB and Reckon.
- The company has successfully expanded its product offerings globally.
- 1851 Capital views Xero as one of the best innovators on the ASX.
- Continued confidence in Xero's growth trajectory and market position.
12 Sep
ASX:CAT
- Forager Funds has reduced their weighting in Catapult Sports Ltd from 10% to 3% of their portfolio.
- Despite the reduction, Forager Funds believes in the company's potential for significant growth.
- The incremental economics of Catapult Sports' business model are viewed as very strong.
- A new management team has been implemented, addressing previous profitability issues.
- Management has committed to delivering 50% profitability on every additional dollar of revenue.
- Catapult Sports has consistently met their profitability targets.
- The company is expanding through innovation, including a recent acquisition of a gym business.
- There are numerous opportunities for further software integration within professional sports teams.
12 Sep
ASX:ERD
- 1851 Capital has invested in EROAD Ltd, a New Zealand-based technology company.
- EROAD focuses on transport analytics and operates in New Zealand, Australia, and the US.
- Current regulatory tailwinds are expected to drive profitability.
- The US government is implementing road user charges for all vehicles, presenting a growth opportunity.
- EROAD already has a contract for commercial vehicles in New Zealand, positioning them favorably for future contracts.
- In Australia, potential road user charges for EVs offer another significant opportunity.
- With a market cap of $400 million, EROAD has recently become cashflow positive.
- 1851 Capital believes there is further upside potential for EROAD.
12 Sep
ASX:PLT
- Forager Funds continues to hold shares in Plenti Group Ltd.
- Plenti operates as a non-bank lender, gaining market share from major banks.
- The company's efficiency is driven by its superior software platform.
- Historically, Plenti has been constrained by its asset-heavy business model.
- Partnership with NAB for auto-lending marks a significant opportunity.
- NAB utilizes Plenti's platform, showcasing its effectiveness.
- The next 12 months are crucial for validating Plenti's business model.
- Plenti appears reasonably priced based on current operations.
12 Sep
ASX:ZIP
- Zip is a buy.
- It is the largest position in the fund at the moment.
- CEO Cynthia Scott has effectively cut costs and sold underperforming assets.
- The business is refocused on the US market.
- The US now accounts for 80% of the company's earnings.
- Buy-now-pay-later is still in early stages in the US, representing only 2% of e-commerce sales.
- In comparison, it is 15% in Australia.
- Bad debts are under control.
- TTV is growing at over 45%.
- Recent partnerships with Google and Stripe may accelerate growth.
- Despite recent share price gains, there is significant upside potential for Zip.
10 Sep
ASX:AAL
- Alfabs share price experienced a notable uplift both ahead of and following its full year results, reversing a period of drift due to limited news flow.
- The company reported a positive update in August, growing their EBITDA by 39% to $27.6m from $19.8m in PCP.
- Alfabs earnings outlook remains strong with a full year contribution of Malabar assets to be recognised in FY26.
- A promising growing engineering pipeline supports future growth.
- The company continues to invest growth capital in their hire fleet to capture further inbound opportunities.
- Alongside the full year results, Alfabs increased their second half fully franked dividend to 1.7 cents from 1.5 cents in the first half of 2025.
10 Sep
ASX:NWH
- Plato Investment Management recognizes NRW Holdings Limited as a mining service company, which operates in a variable and cyclical sector.
- Despite the cyclical nature, Plato Investment Management notes that NRW's customer base includes large clients who are increasing their investment activities.
- NRW Holdings Limited currently has a robust order book, indicating strong future demand.
- As a result, Plato Investment Management believes that NRW's earnings outlook is solid for the next few years.
10 Sep
ASX:NWH
- Atlas Funds Management continues to evaluate opportunities in the mining services sector.
- Investment thesis focuses on the volatility of mining services and contracting companies.
- Experience shows that these companies often do not provide consistent dividend yields.
- Past ownership of similar companies has led to unexpected downturns.
- Contracts need to be renewed every few years, adding to risk.
- Overall, Atlas Funds Management finds the sector too volatile for stable investment.
10 Sep
ASX:PXA
- Datt Capital has recently increased their position in PEXA Group Ltd.
- The decision is driven by stronger management discipline.
- Prudent capital stewardship is also a key factor in the investment thesis.
- There is imminent UK expansion optionality that is seen as a catalyst for a re-rate.
- Datt Capital believes these factors will contribute to positive performance over the medium-term.
10 Sep
ASX:SDR
- Seneca Financial Solutions acquired Siteminder Ltd at the end of July.
- It is a growing, recurring revenue software business.
- The market had previously lost confidence due to weak cash flow.
- After thorough analysis, revenue growth is likely to be re-accelerating.
- There is potential for upside surprise on cash flow.
- Reported $14.3m EBITDA, leading to a stock increase of up to 31% on the day of the announcement.
10 Sep
ASX:SYL
- Symal Group Ltd is a civil construction and equipment hire business.
- Salter Brothers has increased their conviction in the holding following a strong trading update and outlook in August.
- In FY25, Symal modestly outperformed their prospectus guidance by 3.7%, achieving an EBITDA of $106.1m.
- This result is particularly strong given the broadly soft civil construction industry with widespread project delays.
- Guidance for FY26 is $115-125m EBITDA, with strong contract wins and Work in Hand increasing to $1.76bn, up 35% on PCP.
- Salter Brothers maintains high conviction in SYL, which trades at an attractive valuation relative to peers.
- This view is supported by a strong pipeline and potential for additional acquisitions, backed by Symal’s strong balance sheet.
- Symal is an Australian founder-led business providing construction contracting, equipment hires, material sales, recycling, and remediation services.
- The company has a strong track record of organic growth and effective risk management through a vertically integrated operating model.
- Salter Brothers has built a meaningful position in Symal, making it a top 5 holding as of 31/8/2025.
- Symal’s civil construction segment involves civil and private infrastructure, energy, renewables, and complex engineering.
- This division accounted for $714m revenue and $58m normalised EBITDA in FY25.
- The plant and equipment hire business provides heavy machinery, with 50% of equipment hired externally and 50% internally.
- This division accounted for $184m in revenue and $44m in normalised EBITDA in FY25.
- SYCLE is a new segment focused on processing and recycling construction materials, forecasted to enhance vertical integration.
- Symal is well positioned to outperform with good execution of contracted work and a growing pipeline, all while trading at an attractive valuation.
09 Sep
ASX:ANN
- Allan Gray continues to hold a positive view on Ansell Ltd, highlighting its unique characteristics in the market.
- Ansell is described as a "boring" investment, which can be favorable for long-term stability.
- The company has a lower share count now than it did 15 years ago, indicating a history of buying back shares.
- Steady capital allocation practices set Ansell apart from other companies in the sector.
- CEO Neil Salmon is recognized as a methodical thinker and a capable capital allocator.
- With strong leadership, the majority of investment success is believed to be secured.
09 Sep
ASX:BOL
- Boom Logistics reported revenue growth of 2% to $264 million.
- Underlying NPAT stood at $9.3 million.
- EPS increased by 38% to 22 cents.
- Strengths include strong profit growth and exposure to renewable and infrastructure spending.
- A small dividend has been reinstated.
- A $4 million buyback represents approximately 7.3% of shares.
- Management is expected to complete the buyback in full.
- Despite modest revenue growth, seven profit upgrades have been delivered in a row.
- The company remains reasonably priced.
- Collins St Asset Management continues to hold due to these factors.
09 Sep
ASX:DMP
- Ten Cap highlights the potential of turnaround stories, particularly in the case of Domino’s Pizza.
- The company has faced shareholder criticism due to its slow progress in improving performance.
- Domino’s has recognized the need to close unmarketable stores and halt excessive store rollouts.
- Improving franchisee profitability is seen as key to future store expansions.
- With earnings expected to recover from low margins, there is potential for profits to double.
- Ten Cap continues to hold its position in Domino’s, anticipating positive changes ahead.
09 Sep
ASX:GMG
- Wilson Asset Management highlights Goodman Group's transition from traditional warehouses to data centre development.
- The stock is currently trading at its lowest premium for the market in five years.
- Anna Milne, deputy portfolio manager, describes Goodman Group as a safe hold in volatile times.
- There is a strong belief that the future will run on data, reinforcing the company's relevance.
09 Sep
ASX:HUM
- Collins St Asset Management continues to hold Humm Group Ltd due to its resilient business model.
- Humm Financial reported revenue of $666 million (+8%) and underlying NPAT of $55 million (flat).
- The stock trades at approximately 5.8x PE, indicating potential value.
- Strong liquidity with undrawn facilities and $125 million cash against a $320 million market cap.
- Possesses a substantial franking credit balance.
- Stable net interest margins contribute to the overall resilience of the business.
- Concerns regarding governance, particularly with founder and chairman Andrew Abercrombie's lowball privatization offer of ~59c/share.
- This offer is seen as opportunistic and disappointing, especially given Abercrombie’s previous rejection of Latitude Financial’s bid as too low.
09 Sep
ASX:SWM
- Seven West Media reported a revenue decline of 4% to $1.59 billion.
- Underlying NPAT was $57 million, with an EPS of 3.7 cents.
- It trades at a low multiple of ~3.9x PE based on FY25 numbers, compared to peers at roughly double.
- Positives include reduced debt, improved liquidity, controlled costs, and strong digital growth.
- The second half showed profit growth for the first time in 3–4 years, indicating advertising revenue recovery.
- This growth challenges the notion of a structural decline.
- Negatives include that no dividend has been reinstated yet, although management may do so in FY26.
- Collins St Asset Management continues to hold because they see the valuation as extremely cheap with meaningful upside if re-rated.
09 Sep
ASX:SKC
- SkyCity’s revenue fell 5% to NZ$825 million, with NPAT of NZ$71 million, exceeding consensus expectations.
- Collins St Asset Management views this performance positively, considering the tough conditions including regulatory costs, higher compliance, and New Zealand’s recession.
- Management announced a NZ$240 million capital raise, which Collins St strongly opposes as unnecessary and dilutive given the company’s high-quality, monopoly assets.
- Major shareholder Allan Gray publicly criticized the capital raise.
- On a positive note, the NZ International Convention Centre (costing NZ$700m) is set to open soon, expected to attract millions of visitors and benefit the broader complex.
- Collins St notes early success with carded play in New Zealand.
- Despite management missteps, Collins St Asset Management sees SkyCity as deep value.
09 Sep
ASX:SOL
- Ausbil views Soul Patts as the market’s next Berkshire Hathaway.
- The merger with Brickworks simplifies the structure and unlocks index buying.
- This transformation positions Soul Patts as a $14 billion investment house.
- It is beginning to resemble investment giants like Berkshire Hathaway and Blackstone.
- Ausbil highlights it as a unique can-invest-through-the-cycle vehicle.
- The company offers liquidity and potential for a higher valuation.
08 Sep
ASX:NCK
- Bennelong Australian Equity Partners continues to hold a positive view on Nick Scali.
- Nick Scali is regarded as a standout in the retail sector.
- The passion and dedication of Anthony Scali towards the business is evident.
- The company is expanding its footprint in the UK by acquiring Fabb Furniture.
- Stores are being rebranded under the Nick Scali name.
- Recent visits to the rebranded stores have shown them to be impressive and distinct from competitors.
08 Sep
ASX:TPW
- Temple & Webster retains a position in the portfolio.
- Bennelong Australian Equity Partners admires the company’s ability to grow 20 to 30 percent on the top line even when the broader furniture market was flat to declining.
- Looking forward, the company has good leverage to an improving backdrop for housing.
- It boasts incredible management and very clean financials.
- The company has over $140 million of cash on the balance sheet.
- Bennelong Australian Equity Partners sees a sensible growth strategy in place.
04 Sep
ASX:SNL
- Supply Network is recognized as a truck and bus parts supplier.
- It is considered very well run and operates below radar.
- Supply Network provides an essential service in its industry.
- Consensus forecasts indicate 13 per cent organic compound growth over the next three years.
- The company boasts global industry-leading margins.
- Return on capital is reported to be well over 20 per cent.
04 Sep
ASX:ZIP
- Eiger Capital believes that Zip Co has significant growth potential in the United States.
- The company is attracting customers who prefer its features over traditional banks.
- This customer base includes those who do not fit traditional bank criteria.
- Growth in the gig economy is expanding this customer segment.
- Buy now, pay later is becoming a popular choice for many consumers.
- Zip is guiding for over 35% volume growth this financial year.
- Increased margins are also anticipated, supporting the overall investment thesis.
31 Aug
ASX:A2M
- A2 Milk (A2M) delivered a strong FY25 result.
- Capital return was a key highlight of the results.
- Successful streamlining of its long-awaited supply chain was achieved.
- These developments strengthen the company’s operating platform.
- Reinforces Ten Cap's conviction in A2 Milk’s growth trajectory.
31 Aug
ASX:AFL
- Hurdle Rate observes a 27% growth in revenue for AF Legal Group during FY2025, with 11% organic growth.
- Normalisations such as legal defence fees and software implementation costs were elevated, as previously noted.
- The adoption of Aderant is projected to incur an additional $1.2m cost in FY2026, treated as an expense.
- Despite these costs, the indicative ROE using normalised profit has improved from 8% to 11%, indicating increased capital efficiency.
- There are still some run-rate earnings from Criminal Law not reflected in the accounts.
- Momentum in growth is confirmed to have continued into July and August, bolstering confidence in future growth.
31 Aug
ASX:ARB
- ARB Corporation Ltd has shown strong sales growth in its international division.
- SG Hiscock & Company recognizes ARB as a dominant brand in the 4WD auto parts accessories market in Australia, established over 50 years.
- The company is strategically expanding into the United States and other international markets.
- ARB has successfully acquired a 50% shareholding in a major US auto retail business.
- Strong partnerships with FORD and Toyota enhance ARB's market position.
- ARB's online capabilities and retail footprint are well-positioned for future growth.
- SG Hiscock & Company believes ARB is set for a long runway of growth in the larger US market.
31 Aug
ASX:ADH
- Ten Cap has increased its position in Adairs (ADH), aligning with their strategy focused on domestic cyclicals.
- Both Adairs and its peer demonstrate disciplined cost control.
- They maintain solid balance sheets, which is a positive indicator for stability.
- There is potential for operating leverage as market demand begins to stabilize.
31 Aug
ASX:AMX
- Firetrail Investments notes that East Coast gas producer Amplitude Energy has underperformed, with shares trading flat-to-down post FY25 results.
- Conservative production guidance has been identified as a key factor affecting performance, despite management's strong operational delivery track record.
- Despite recent strong share price performance, Firetrail Investments continues to see ~50% upside in Amplitude.
- The core business is projected to generate free cash flow of >$200m per annum for the next 7-8 years against an enterprise value of ~$900m.
- The Otway growth project has the potential to deliver an internal rate of return of over 30% and significant production growth.
- Additional opportunities such as plant debottlenecking, gas storage, and third-party tolling of gas could lead to positive surprises.
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