A bull in a bear china shop

Richard Hemming

Under the Radar's next issue has a great interview with Frank Villante from Celeste Funds Management. Not only is he one of the top performing fund managers around, but he's buying up big time right now.

Value is to be found, says Frank. A couple of stocks worth mentioning are the retailers.

His fund has positions in the so-called “bricks and mortar” fashion retailers that have shop fronts, like Noni B (NBL) and Speciality Fashion (SFH). These companies are ridiculously cheap, trading at levels of about 5 to 10 cents for every dollar of sales.

Contrast this to regional media publisher APN News & Media's $36 million offer for an 82 per cent stake in online retailer, brandsExclusive. The website says it has 1.8 million members and sells brands, accessories, shoes, toys and homewares at discounted prices. APN's bid values it at $1.10 per dollar of sales.

“The dichotomy between bricks-and-mortar valuations and those of online businesses is way out of kilter,” says Villante.

Stay tuned for more of Radar's small cap stock tips and company updates as well as jucier bits from our interview with Villante.

Best wishes

Richard Hemming

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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