5 Stocks for Your Watchlist - August 2020

Does your portfolio look like Today or Tomorrow?

Following on from our top technology stocks, here's 5 stocks to compliment your investment portfolio. 

2020 is a year that has been difficult to keep track of, let alone the direction of your investments. So far this year some have thrived, while others have perished. Under the current circumstances, the back end of CY20 will likely be no different.

 

Here are 5 stocks on our radar that we believe will fall on the positive side of the ledger throughout the coming months.

 


 

BIN_BPC

 

Bingo Industries (BIN.ASX)

From humble beginnings as an ordinary skip bin business Bingo has  evolved to become a fully integrated recycling and waste management company, providing solutions across the entire waste management supply chain including collection, processing, separation, recycling and disposal. BINGO employs almost 800 staff who manage and operate a fleet of over 250 vehicles servicing more than 18,000 customers each year. Plus, they have the largest network of resource recovery and recycling centres across NSW and Victoria.

 
Bingo being in waste management is a play on construction and infrastructure spend. In a fragmented sector Bingo is well primed to take advantage of the current low rate environment and acquire earnings accretive businesses on low multiples of earnings.

 

 

ICU_BPC

 

iSentric (ICU.ASX)

ISentric (ASX: ICU) has positioned itself as “a Fintech & Digital Commerce Group” with interests in both the B2B and B2C spectrums of the fast growth & underbanked ASEAN markets where growth is driven by smartphone usage, rapid uptake of cashless payment systems and micro-credit. To date, the company have built a strong presence with consumers and their suppliers through its bank and telco partnerships and are well placed to capitalise on the next stage of growth from its four diversified yet complementary areas - digital media, digital payments, digital gaming and enterprise mobility.
 
With an average $7m in Revenue in the last 3 years, compelling valuation metrics (Price/Sales of ~0.80x1 (FY19)), and a recently heavily oversubscribed Placements for a total of $1,500,000 we believe growth is imminent there is a current opportunity for investors to take advantage of its undervalued price point.

1. ASX as at 13/07/2020, Market Capitalisation
 
 

SAR_BPC

 

Saracen (SAR.ASX)

Saracen Mineral Holdings (ASX: SAR) is the all-Australian gold company holding 15Moz in resources and 7Moz* in reserves across three mines located in the heart of WA - including its 50% interest in Kalgoorlie well known super pit. There is plenty of upside potential with this company as the conservative management progress towards a more sustainable and future-proofed Saracen through scale, longevity and growth.

Like most gold players, Saracen since March has seen a significant influx in its share price - +100%. What notably has caught our attention is that despite COVID-19 Saracen still retained and beat their FY20 guidance of 500,000z and announced record cash flow. Because they have a 7-year track record of meeting or beating guidance, a proven ability to exceed targets during the weak economic environments, inventory growth opportunities, and the expected rising gold price on its side we believe Saracen is sure to reap the rewards and continue their successes over the next FY.

*30 June 2019

 

Bapcor_BPC

 

Bapcor (BAP.ASX)

Bapcor (ASX: BAP) is an ASX-Listed provider of aftermarket auto parts, accessories and auto services. We believe BAP to be trading at a reasonable discount to fair value and feel that the current share price provides an excellent entry point for near-term upside.

The rationale behind our buy is that the uncertainty and economic weakness associated with COVID -19, the Australian consumer within the Automotive market is less likely to seek finance or spend aggressively on new vehicles and more likely focus towards servicing the vehicles they currently own.

 

SKI_BPC

 

Spark Infrastructure (SKI.ASX)

Spark Infrastructure is a leading ASX-listed owner of long-life, essential services infrastructure businesses, which are ranked among the most efficient and reliable of their type in Australia. Their businesses focus on efficiencies to deliver affordable, reliable electricity to customers. That enables us to deliver long-term sustainable value to our Securityholders.

Spark is a utility business with a strong asset portfolio, it offers stable yield in an environment where there is little to no return in the banks and provides reliable income for yield hunters. The business benefits from the current low rate environment due to debt covenants and repayments being lower, these cost savings allow Spark to reinvest back into the business or increase their dividend payout.
 

 

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