Get Rich With Rich: in May 2024

Welcome to getting rich with Rich. We’re in celebration mode here because we’re approaching our 600th issue next week and most importantly, one of our foundation stocks – Southern Cross Electrical (SXE) is shooting the lights out. This stock has been a best buy, it’s in our dividend portfolio, it’s in our main portfolio and it’s a great example of what can happen when you combine contrarian investing with holding a portfolio of diversified stocks.

My business partner Caroline Mark has shown better than anyone what you can do with our research. She basically follows it and uses common sense. I mean it’s that simple. She’s almost doubled her money over the past 5 years, which equates to about 20% a year. That’s better than the returns of any fund manager I can think of. More to the point, you can do it too.

That’s why I want to mention a few stocks to get you thinking.

We hear a lot about technology stocks these days. Mostly digital technology. Here stocks that dominate include:
- Megaport
- Wisetech
- NextDC
- Xero

Then you have the Magnificent Seven, which is at another level. You’ve got the obvious tailwinds of the digitalisation of everything and you can’t get away from someone saying AI within 30 seconds of a conversation. It’s like my mother-in-law used to be with Aldi.

What you don’t hear about is medical technology- or at least not nearly as much. There is that weight loss drug, but the point is that more stocks are ignored, which is where under the radar report comes into its own.

There are two we analyse in this week’s report – Cyclopharm (CYC) and SomnoMed (SOM). Both have what you want – high demand for their products; and they’re both cheap.

Cyclopharm has a technology technogas, which diagnoses respiratory conditions and has received approval in the US for pulmonary embolism. But nothing in life is easy and there have been delays in reimbursement and the excitement has faded. This is where we sense opportunity.

Somnomed has a treatment for sleep apnoea, which is oral based unlike the reverse vaccum produced by ResMed, called CPAP. This company has been beset by problems, but has the backing of cornerstone shareholders and has been recapitalised.

I won’t lie. Investing in small caps is often not as intuitive as investing in a bank or a retailer. You need to have some leaps of faith and do some lateral thinking. Often we talk about industries that are emerging and you might not have direct experience. But our strength at under the radar report is communicating difficult ideas into simple action based concepts – obviously, buy, sell, hold. But more that that – Caroline made a lot of money from uranium stocks. We were able to simplify why, despite the obvious dangers of nuclear related technology, the stocks were worth investing in. Now this is the orthodoxy!

Next Tuesday we have our analysts doing our Ask The Analyst for subscribers and our focus will be on demystifying our high conviction stocks. We’re also there to take questions and that’s what we really love, interacting with our members.

NEXT WEEK! We are releasing a NEW Small Cap Portfolio.

Small Cap Portfolio February 2023
To access all our stock recommendations and to supercharge your investing, activate your membership here.

ABOUT THE AUTHOR

Richard Hemming

Richard Hemming

Follow Richard on linkedin

Richard is a leading market commentator and expert on ASX Small Caps

www.undertheradarreport.com.au provides investment opportunities in Small Caps that you won’t get anywhere else.

Under the Radar Report is licensed to give general financial advice only (ASFL: 409518). The author does not own shares in any of the stocks mentioned.

Under the Radar Report is licensed to give general financial advice only (ASFL: 409518). The author does not own shares in any of the stocks mentioned.

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