Alumina and my Small Cap Shares

Caroline Mark

The ASX Shares I've bought are all in green and I'm looking at which shares to buy next. I'm planning what shares to buy next month when I've got some more money.

I can't resist checking in on my ASX listed shares every few days. It's like checking your bank balance, but more fun.

ASX Blue Chip Share: Alumina (AWC)

This Blue Chip share powered from red to green in about a day. (novices like me - you always start out in the red because of the $20 you pay to make the trade). But Alumina has gone up nearly 6% since I bought it just two weeks ago!

An image of a bauxite mine

We had our Blue Chip Value share report out today and I was interested to see our analysts Buy recommendation remains unchanged. I bought in at $2.24 a share and it's now at $2.38. I found out that the company has had lower profits this year because the alumina price came off, but that as a low cost producer it’s in a good position to keep churning out those precious dividends in any case. I’m going to do a bit more research, but it’s very encouraging.

What I also found out was that Coca-Cola is looking at how to stop using plastics and that they are looking at aluminium as a solution. I personally can't see how things can stay the same. In 50 years time, or even 20, can you honestly believe that any one will be digging up coal or producing so much plastic? I have no idea when the tipping point will be but I'm sure we are in for economic change.

I don't have any extra money right now but buying more Alumina is certainly of interest to me.

Small Cap Shares: Macquarie Corporate (MAQ) and Panoramic Resources (PAN)

I've been watching these ASX listed small cap shares closely. They also have both gone up MAQ only just by a bit of a cent, but still, it's gone up, and PAN also. It's changed from red to green and like any traffic light, I'm happy.

So I'm up 2.6%. No share has fallen off a cliff. It hasn't been a disaster. In fact, it's all just pottering along as it should.

So, what's next?

I don't have any spare cash right now so I can't be buying another parcel of shares today,  but I can start looking as October is just around the corner and I'm certainly going to be buying more ASX shares then.

Buying Blue Chip Shares versus Small Cap shares

I'm not certain which I'm going to buy next. We have a Buy recommendation on 13 Blue Chip shares at the moment. I'm thinking maybe a bank. It's boring I know, but maybe sensible. I like our Blue Chip report as it tells you which of the banks is a buy and which offers the best value right now. I do like a bargain, it makes me feel better but of course, I'm after a share that is going to perform. So that's one idea. I know at some point I'm going to buy a bank but I'm not sure if it's the next one, simply because their business doesn't really interest me.

Blue chips are dominated by the banks, the big miners and a few big industrials. But I know they are relatively stable and they pay good dividends.

Qantas (QAN) is a buy recommendation at the moment. Would I buy these shares? Not based on my recent experience when we flew back from Singapore and had a pretty dreadful experience with Qantas. We got to the airport, waited in the queue to check in (it wasn't accepting machine check ins), there was no announcement but it became clear there was a problem. We waited over an hour in the queue with two children and in the end I went up to one of the staff to ask if it had been cancelled. Still no announcement. Still no confirmation. But yes, our flight had been cancelled and we had to stay in Singapore an extra day. It was so poorly communicated and handled. Would I choose Qantas again? nope.

Their current cutback in middle management looks great for their financials but not great for customers.

Maybe Sydney Airports (SYD) is something to consider as once you are there you are forced to pay exorbitant prices! 

Small Caps

We had six best buy recommendations and we have a strong track record in our best stocks to buy table. So I'm going to read up on some small caps. I'll be looking for quality.

We are also covering some disruptive small caps in the next three weeks and then we are producing another portfolio of dividend paying small caps. So lots of interesting small caps to keep me interested.

About the Author

Caroline Mark

Caroline Mark is the Founder and Publisher at Under the Radar Report, which provides independent ASX share research to help build investor’s share portfolio. Under the Radar Report is licensed to give general share financial advice only (ASFL: 409518). The author is not licensed to give personal financial advice and this commentary is for general information only.

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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