For the first 2 months of the year investors have endured a torrid time. However those of you that have listened are now reaping the rewards of savvy investing. has been a strong advocate that the market reaction was over extended and promoted taking the selloff as a buying opportunity to add quality stocks to your portfolio. Share prices are now bouncing and bouncing fast. The ASX 200 is up over 7% from its lows in under a month. For those long term investors that chose to listen you will be sitting on a tidy profit. However opportunities still exists.
Below is a list of the 35 worst performing stocks on the ASX. We have highlighted the stocks that we like most over the medium term. We do NOT advocate buying stocks that are ‘cheap’ because they share price has declined. We believe in buying good business for cheap prices. Investors should not simply buy because prices have fallen, rather that fundamentals have become misaligned with the share price.
's TOP 6 Picks
1. Select Harvest
Select Harvest is Australia's second largest almond producer and the largest listed almond company in the world. SHV performs basic processing for the majority of its export volume and the remainder is sent for further processing by the company's Food division.
Why has the share price declined?
Almond prices have come off their record high prices achieved last year. Prices are down 21% from their all-time high.
Why we like it:
Despite a moderate drop in the almond price, the Select harvest share price has plummeted. We believe that this is a major over reaction. Long term fundamental for the industry remain strong. A growing Asian middle class is placing major demand pressure on agricultural resources. We believe this will result in higher prices for producers and consequently greater profitability. believe the ‘Dining Boom’ Thematic is set to be a multi-year investment theme and Australasia is set to directly benefit from this dynamic given their favourable trading arrangements and close proximity with China and the rest of Asia.
Global almond consumption has grown by approximately 8% per annum over the past decade, with China and US demand growing significantly. is a strong believer in the future of the agricultural sector as global growth transitions away from manufacturing and towards a more consumer centric environment.
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