Generate Cash from a Trading Market

Richard Hemming

ASX Shares: Buy Now Pay Later

ASX shares in Buy Now Play Later (BNPL) fintechs have been on a roller coaster ride over the past few months. Euphoria is again creeping in to the share prices of Afterpay (APT)Zip Co (Z1P) and Splitit (SPT). But not all BNPL operators are created equal. Under the Radar stock report analyse the differences between the three major players in Australia; what you should do about them as a small cap investor now that they’ve bounced back hard. We also look at the sector and how it’s being rewarded by the shift to online retail and the risks they face.
 
As well as their business models, Under the Radar stock report looks at the themes driving the sector including the increasing pace at which retail is shifting to online; the decline in consumer spending; the effect of heightened credit risk on defaults; government stimulus and regulatory risk.
 
In a trading market you want to make sure that as a small cap investor you generate cash from your successes.

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ASX Listed Companies are Raising Cash 

The big Covid-19 trend we are seeing in the corporate sector is that ASX listed companies, big and small, continue to raise cash, whether they’re in distress, or because they’re being opportunistic, like Infomedia (IFM). While this helps companies in the short term, it also sends a message to small cap investors: you should be using opportunities to take profits on ASX stocks where you can find them.

Playing in a Sweet and Sour Market

We’re currently in a market that is sweet and sour. Some companies are re-iterating their profit guidance; then there’s others that are disaster areas and generally have had problems before we ever knew about the importance of “flattening the curve”.
 
Nobody will be able to avoid some of the sour but Under the Radar stock report provides your portfolio with enough of the sweet to give you a smile. To view this weeks 10 best stock to buy and position your portfolio for growth, click here.  

Small Cap Investors: Look to Take Profits

Good stocks may have high valuations, trading on a high earnings multiple. Given that valuations are generally low, ASX stocks with high valuations should be sold. We point out the candidates. We are in an unprecedented time and the environment is changing quickly. Turn some of your paper profits into cash. Read more about this market advice.

Under the Radar Stock Recommendations

Small Caps that are doing well include beauty products distributor McPherson’s (MCP) and car parts publisher Infomedia (IFM), the latter is doing a capital raising. In tomorrow's Under the Radar's stock report we focus on those ASX listed company's valuation, which is the crucial factor on whether to take profits. The point being that you can’t spend yesterday’s valuation or put another way, paper profits don’t pay the bills. As a small cap investor you need to raise cash.

Use our portfolios as a guide on which shares to own and the weight we place on those shares. This will guide you no matter how much you are investing in the share market.

Visit the Small Cap Portfolio online to find out which shares we are buying and selling.
 

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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