3 ASX Shares for June 2024 & Watch Your Portfolio Grow

In this episode of "Getting Rich with Rich".

Rich, founder of Under the Radar Report, delves into the current state of the market, identifying where the true value lies and where it doesn't.

Three promising stocks to grow your portfolio in June
Rich talks about 3 stocks and introduces an exciting new segment called Traders Corner.

He also highlights the irrational exuberance seen in certain tech stocks and emphasizes the importance of seeking undervalued opportunities.

Don't miss out on Rich's expert insights and stock picks!

INTRO: MARKET UPDATE & 3 STOCKS

Welcome to getting rich with rich, I’m rich, founder of under the radar report. Thank god it’s Friday! Today I want to talk a bit about the market and where the value is, and isn’t. Then I want to go through 3 shares to grow your portfolio in June. On top of this, members will be excited to know that we’ve got a new stock coming out next week and a section we’ve been working hard on called Trader’s Corner, where we’ll be delivering our trading ideas.

MARKET UPDATE

First, the market update. This is a bit of a misnomer. Everyone says, what’s the market doing. What’s important is the economy. What investors are doing is hunting for growth in stocks that aren’t dependent on the state of the economy. We’re seeing tech stocks get bought every day in the US and we’re also seeing big deals done in biotech. This translates to big money going into a few stocks, which at certain points don’t reflect economic or fundamental reality.

Don’t worry, because there are so many other stocks out there that are undervalued, because they’re being ignored. I’ll go into these stocks in a second. Let’s look at two stocks where I think investors are getting carried away.

Weebit Nano $WBT has a form of flash memory it’s been developing for some time and doesn’t look like generating revenues any time soon. It’s in the ASX300 Index and has a market cap of close to $500m.

Droneshield $DRO has a valuation near $1bn and is forecast to make sales of about $100m. The company might have a Nato contract but it’s barely profitable. This is not a software company but sells its weapon technology in the physical form – you know, the gun that looks like it’s from Aliens. The point is it’s not going to generate those all important software as a subscription revenues.

WHAT WE LOOK FOR AT UNDER THE RADAR REPORT

What you want to buy are companies that have business models that can deliver real profit growth.

STOCK 1

The first stock I want to tell you about is MedAdvisor $MDR. This stock has gone up, yes, but it’s got a great business model – with subscription revenues in Australia from its app which most pharmacies subscribe to for adherence, which means encouraging people to take their prescriptions and the US model, which acts as a marketing arm for big pharma. Sales from the US were up 57% last quarter. Try getting that from a blue chip.

STOCK 2

Silk Logistics $SLH is the other end of the spectrum, being the third biggest port logistics operator in Australia. The company has built up its business via acquisition and now it’s time for that scale to deliver. It’s a low margin business but it doesn’t have to do much trading on about 25% of sales and on a single-digit PE.

STOCK 3

Third, is Airtasker $ART, the highest risk of these stocks. But what’s encouraging is the Australian business EBITDA margins of over 80%. That is phenomenal. Now this needs to happen in the UK and all is sweet. Easier said than done, yes, which is where faith in management comes in.

 

Radar Rating!

There you have it. The take out is don’t play the momentum game unless you’ve got enough liquidity in the stock to get out quickly; and always be hunting for value.

 

WHAT’S NEXT WEEK

Next week, just to remind you, we’re releasing coverage on a new stock in small caps land, we’re releasing our trader’s corner segment and then we’ve got our special report on ETFs. It’s all happening under the radar.

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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