As we head into the all-important August reporting period, Ron Shamgar looks at some of our holdings in the TAMIM All Cap Individually Managed Accounts (IMA's). We examine what the key points are to look for in the results. With volatile global and Australian equity markets we have experienced over the past week, the actual results and performance of our underlying investments will be important to monitor. Interestingly this volatility may provide attractive entry points for quality companies.
EML Payments (EML.ASX)
EML is currently our largest holding in the All Cap portfolios and has gone up over 100% since the beginning of the calendar year. We still view the business and management team as one of the best on the ASX and expect the share price to continue to go higher in the medium to long term.
Here is what to look out for in their full year results:
Noni B (NBL.ASX)
Although the company has already provided a trading update and reaffirmed guidance of $45M EBITDA, these results are an important catalyst for the stock. 2H19 has been quite a tough time for retailers but we expect June and July to have shown an improvement due to improved consumer confidence following the election results and recent interest rate cuts.
Key points to look for:
Collection house (CLH.ASX)
Collection House has not performed as we would have hoped since we took a position and we are looking to see improvement or affirmation of a few key metrics in order to retain our position going forward. The company has already reaffirmed guidance several times and so here are some key points to look out for:
Isentia is another company we previously wrote about as a turnaround story that has also not yet performed to this point. We are looking for the following key points and will reassess our position post the results:
RMC has recently issued guidance of $30-$32M NPAT for this year. We expect the company to hit the top end of this range as the business is benefiting from a resurgence in mortgage lending activity since the election.
We are looking out for the following:
We spotlighted Pointsbet in mid-June this year and since then the stock is up ~50%. The company has made significant progress in the US sports betting market since listing in early June. As outlined in some of their recent updates, PBH has now secured licenses across ten states and should launch in four new states outside of New Jersey (NJ) in 1H20. The company has finished FY19 with an annualised run rate of approximately $250M of bets in NJ alone. We expect that number, when combined with successful roll outs in other states, to head upwards towards $1B over the next two years.
We are looking for the following at the results:
We will continue to scrutinise and analyse all of our portfolio holdings along with the other businesses on our watch list during the always busy reporting period. We will update our investors on our key takeaways in the September monthly newsletter.
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TAMIM Asset Management provides general information to help you understand our investment approach. Any financial information we provide is not advice, has not considered your personal circumstances and may not be suitable for you.