To Buy or Not to Buy Resources?

Richard Hemming

A hot new gold stock in tomorrow’s report

In tomorrow's Stock Report find out what we think of one of Australia’s emerging gas providers, Cooper Energy (COE). We cover a hot new gold stock and we analyse one of our high flying favourites, the aluminium products producer Capral (CAA). Long-term subscribers will find it hard to believe the words “high flyer” can be associated with Capral, but what do they say? Every aluminium manufacturer and distributor has its year (or two). 2020 was good for Capral and we analyse what 2021 will bring.

Which mining companies should you own?

We delve deeper into the LNG sector next week and we’re commencing coverage on a new stock in that sector, but this week we focus more broadly on resources: which mining companies eight of Australia's top Fund Managers are buying.We have been running the Fund Managers Round Table for nine years now and most years Andy Gracey of Australian Ethical has participated. He says that his company isn’t invested in the resource sector, for obvious reasons but this year he’s changed his tune! Click here to access this week's report and find out what resource stocks Andy Gracey is interested in.

We also ask the Fund Manager:

  • Where do you think you will be spending money in the next six months?
  • Are you more interested in resources now than you were this time last year?
  • ​Where are your big portfolio bets and why?

Why you shouldn't avoid buying stocks

Sometimes people will say that they’re worried about the economy so they’re avoiding stocks. This is a mistake. Companies and markets reinvent themselves with amazing speed. The stock market is a voting machine of sorts and when you buy Small Caps, you are buying the future. And a part of that future is always commodities. You can’t build a Tesla car from nothing.

Some of the resource stocks mentioned in this week's report are mining services

Australia is where expertise in extraction has thrived, for obvious reasons. These companies are playing an important part in the portfolio of investors, big and small.

Commodities prices moving up means that there is more confidence that mines are profitable

As Under the Radar Report’s portfolio manager says, commodities prices moving up means that there is more confidence that mines are profitable. Luckily we have a good mining analyst in Peter Chilton. This is invaluable on the geological and engineering front and we are able to see opportunities that we couldn’t before. Also, mining companies are more disciplined with expenditure now than in the past, as a generalisation. 

We also ask the Fund Managers to list the stocks that they’re excited about in their portfolios

We’ve got lots of miners to get you thinking and lots of industrials. Our final questions gets eight of Australia's top Fund Managers to list the stocks that they’re excited about in their portfolios. What more would you want?

About the Author

Richard Hemming

Richard Hemming (r.hemming@undertheradarreport.com.au) is an independent analyst who edits www.undertheradarreport.com.au, which 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 (AFSL: 409518). The author does not own shares in any of the stocks mentioned.

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