Making Sense of ASX Share Market Turmoil

Richard Hemming

It's hard to make sense of the ASX share market at the moment, in fact it's hard to adjust to the daily changes with the cornavirus crises. Under the Radar Report's team of expert ASX Share analysts are your eyes and ears and are watching the share market closely. 

Revenue is the key for ASX stocks right now as costs can go anywhere

The key thing to note when you are buying a company is whether customers are still using its service or product. In this environment, more than any other time, revenues are the key, costs can go anywhere. 
 
You’re still getting your telco bills; you’re still paying bank fees; and you’re still paying for stuff at the supermarket.
 

Economic and social lockdown

We’re obviously concerned about the extent and breadth of the economic lockdown, although there have been some promising outcomes where authorities have delivered appropriate volumes and speed of coronavirus tests to help detect and slow down the spread of the disease. There are also contradictory signs that the disease will be hard to eliminate completely, and measures will have to be introduced to give authorities comfort that they can control the spread through the community.
 

Putting your cash to work in the downturn

Putting cash to work on a bad day is part of the process of taking advantage of the ASX share market downturn, and today is no different. 
 

We are focussed on revenue

As we will go into in more detail in this week’s issue of Under the Radar Report, we are focussed on revenue stability in these uncertain times. We are looking for companies whose revenue interruption risk might be lower than otherwise. 

Please remember to be patient and buy selectively in small parcels. Don’t chase stocks up – there will be another opportunity to buy at your price in the current market volatility.
 

Blue Chip six stocks

Subscribers should look at our Blue Chip Value note which was sent out on Friday, in which we outline six stocks and don’t forget our Small Cap Best Buys. These reports are available on our website or check your emails.
 

Portfolio transaction

We like the idea of Hansen Technologies (HSN), the utility software provider.  We updated our coverage in Issue 385, and we should be able to get a few shares below $2.80. The Under the Radar Report Portfolio will buy 1000 at tonight’s close below that level.

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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