Here’s why these 3 ASX shares are in the top 10 holdings of the top performing Ausbil MicroCap Fund

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Writing in its July 2018 monthly update, the Ausbil MicroCap Fund has highlighted three of its top 10 holdings.

The Nearmap Ltd (ASX:NEA) share price performed exceptionally well during July following a positive investor reaction to an earnings update early in the month.

Ausbil said the update showed the company was firing on all cylinders with strong momentum in both Australia and the US. The strength of the performance in the US in particular provided encouragement that the loss making division would soon reach break–even, reducing the
risk of a dilutive equity raising to supplement internal resources.

The Smartgroup Corporation (ASX:SIQ) share price moved higher during July despite no notable news.

With a restored balance sheet, Ausbil says the share market is awaiting news on any future acquisitions with a particular focus on potential new industry verticals. Management have a strong reputation in the market for execution and financial discipline, so the fund looks forward to any developments on this front.

The Kidman Resources (ASX:KDR) share price fell in July, detracting from Ausbil’s monthly performance.

Global oversupply fears resurfaced as the market sought to assess the impact of a number of new lithium mines coming into production over the next 12 months. Data showing weakening lithium carbonate prices in China seemed to validate that view.

The fund believes this view is overly simplistic and fails to distinguish between individual mines and the extraordinary level of demand for the highest quality projects. Global industrial consumers are driving demand as they desperately seek to lock in raw material supply as the electric vehicle and battery storage markets rapidly evolve.

Kidman Resources shares don’t look cheap, but these 3 shares do…

Combining countless hours of research with over 30 years of hands-on stock market investing experience, The Capital Club’s founder Bruce Jackson has just published his definitive list of 3 Cheap and Good ASX Stocks for 2018.

Kidman Resources was not one of them, but the list does include one tiny gold mining stock, and the company one top fund manager calls the cheapest stock in the ASX 100.

Find out why these 3 Cheap and Good Stocks could be better buys than Kidman Resources. But you better hurry… these stocks may not stay cheap for long.

See the 3 stocks

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Contributors to this article may own shares in some of the companies mentioned in this article. The Capital Club has a thorough disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
Bruce Jackson has 30 years of hands on investing experience. He is passionate about stock market investing, running his own portfolio and SMSF. His focus is on small cap growth stocks. You can contact Bruce at brucej@thecapitalclub.com.au