Continuing our Talking Top Twenty series, this week we take a look at a pair of retailers, Woolworths (WOW.ASX) and Wesfarmers (WES.ASX), and a biotech giant in CSL (CSL.ASX).
This week we’re looking at a small cap retail stock that is offering investors a concentrated bet on the reopening theme. In 2020 we saw a huge shift in sentiment towards stocks that were benefiting from a covid-19 environment. Companies such as Pushpay (PPH.ASX) and Redbubble (RBL.ASX), we bought both heading into the pandemic, were huge beneficiaries. Heading into Christmas, the covid winners and now the covid losers and retail stocks are starting to grab more attention. With Australia exiting lockdowns there is a lot of pent up demand for retail spending, what we like to call revenge spending.
This week we take a look at two retailers that have provided robust results for FY20 and are seeing continued strong momentum into the new financial year as the structural shift to e-commerce accelerates. We believe there is more share price upside as valuations catch-up to fundamentals.
As most investors know, retail is a tough game. In the last twelve months we have seen many retailers struggle with sluggish consumer spending, bush fires impacting sales and more recently the drop off in tourism from the coronavirus, COVID-19. But, not all retailers are made the same. Despite all this doom and gloom, three retailers we own delivered strong results recently. But why are these retailers outperforming their peers? Read on to find out.
At TAMIM we are committed to educating investors on how best to manage their retirement futures.
Sign up to receive our weekly newsletter:
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.