ASX Portfolio and Stock Commentary

Sun 1:31am by Anton Crabbe

3 comments 140 reads

Hi hope everyone is have a great Easter,

I am based in Australia and hope to provide some commentary on ASX stocks and economic conditions down under here.

I have put together a portfolio of 20 stocks from the ASX 300 based on a slightly altered quality screen. The gist of it is, stocks with strong cash flows and low debt that generate double or near double digit returns on ROE, ROA, and ROCE are in the portfolio and need to maintain this type of performance to remain or they get the boot, and the capital is reallocated or kept as cash depending on prevailing opportunities.

The aim is to generate a 15% or greater return p.a. and demonstrate the benefits of this style of investing. I don’t care much for what sector or industry the companies are in as long as they keep generating the required returns to stay in the portfolio. I will provide more detail on the investment mandate and style in future posts, as I track the performance and make changes to the portfolio.

Stay tuned for more updates and reviews, stay calm and keep investing :)

…

Flag	Ticker	Name	Quality Rank	ROCE TTM (%)	ROE TTM (%)	ROE 5y Avg (%)	Op Mgn TTM (%)	Gross Mgn TTM (%)	OCF TTM (m)	FCF TTM (m)	Net Gearing Latest (%)	Long Term Debt Latest (m)	Piotroski F-Score TTM	Altman Z-Score TTM	Beneish M-Score Last Year	Stock Rank™	Sector
au	JIN	Jumbo Interactive	100	47.57	36.98	34.79	38.34	83.05	41.43	33.88	-55.40	1.04	8.00	11.97	-2.87	81	Consumer Cyclicals
au	PME	Pro Medicus	99	53.66	51.53	47.05	73.15	99.85	101.70	94.57	-81.21	1.21	7.00	184.54	-2.18	71	Healthcare
au	RMD	Resmed	99	24.81	25.65	23.29	31.67	58.39	1476.31	1383.80	2.87	662.86	9.00	12.76	-2.41	79	Healthcare
au	CAR	Car	98	9.15	8.48	23.53	36.95	93.62	470.30	360.04	35.95	1293.72	8.00	4.92	-2.54	59	Technology
au	TNE	TechnologyOne	98	33.73	34.44	41.57	28.95	87.93	212.75	120.11	-57.75	52.57	6.00	16.54	-3.15	72	Technology
au	BXB	Brambles	97	22.17	26.45	21.56

Unlock with Email

Unlock with Google

Already have an account?
Login here

ShoeShineBoy

Sun 8:15am

Thanks for the write-up Anton, always interesting to hear about other markets. I have exposure to the S&P/ASX 200 Index (ASX:XJO) through Schroder Oriental Income Fund (LON:SOI) and BlackRock World Mining Trust (LON:BRWM).

Sounds like you are a long-term investor. What is the typical yield on the Australian market ?

I recall reading Diary of a CFD Trader by Catherine Davey where she talks about time zone and resource stocks being the drivers of 'gapping' in prices. Trading is a difficult occupation but this makes it sound doubly difficult!

SSB

Anton Crabbe

Mon 12:59am

Hi SSB,

Yes, mostly long-term investor through my super, but have a holding of small cap stocks outside of super that basically I am having a punt on to keep things interesting haha.

ASX long-term return is 10% and if you can generate a 5-4% dividend yield of the journey you are doing well too. If you take into account franking credits than this can be higher, but overseas based investors are not eligible for franking credits.

I do get the appeal of charting and momentum investing, but when the proverbial hits the fan, like we have just seen with Trump's tariffs, the market goes back to fundamentals and stocks that produce cash flows and profits with low debt, and mostly these stocks tend to fall the least too.

Your traditional diversification works but it limits upside as this is the payoff to limiting the downside. My theory is, by holding quality performing stocks regardless of sector or industry you will be able to generate above average returns over the long-term. Volatility is part of share investing and by investing in quality stocks you are in the best position to ride these periods of valiantly out, while still able to sleep at night haha.

Mon 1:44am

I used this altered quality screen and ranked the ASX300 stocks on their Quality score and hand picked 20 stocks I like based on cash flows, debt levels and ROE, ROA and ROCE. There are a few stocks I have put in there due to the market pull back that I will off load once they rebound, hopefully! A bit optimistic I know but don't look a gift horse in the mouth :)

Flag	Ticker	Name	Quality Rank	ROCE TTM (%)	ROCE 5y Avg (%)	ROE TTM (%)	ROE 5y Avg (%)	ROA TTM (%)	ROA 5y Avg (%)	Op Mgn TTM (%)	Gross Mgn TTM (%)	OCF TTM (m)	FCF TTM (m)	Net Gearing Latest (%)	Long Term Debt Latest (m)	Piotroski F-Score TTM	Altman Z-Score TTM	Beneish M-Score Last Year	Stock Rank™	Sector
au	JIN	Jumbo Interactive	100	47.57	45.07	36.98	34.79	24.76	24.53	38.34	83.05	41.43	33.88	-55.40	1.04	8	11.97	-2.87	81	Consumer Cyclicals
au	PME	Pro Medicus	99	53.66	45.38	51.53	47.05	38.67	30.96	73.15	99.85	101.70	94.57	-81.21	1.21	7	184.54	-2.18	71	Healthcare
au	RMD	Resmed	99	24.81	21.54	25.65	23.29	17.90	14.10	31.67	58.39	1476.31	1383.80	2.87	662.86	9	12.76	-2.41	79	Healthcare
au	CAR	Car	98	9.15	15.26	8.48	23.53	5.42	11.97	36.95	93.62	470.30	360.04	35.95	1293.72	8	4.92	-2.54	59	Technology
au	TNE	TechnologyOne	98	33.73	40.62	34.44	41.57	17.60	17.49	28.95	87.93	212.75	120.11	-57.75	52.57	6	16.54	-3.15	72	Technology
au	BXB	Brambles	97	22.17	16.83	26.45	21.56	9.68	7.69	19.93	49.30	1772.50	796.60	82.02	2018.00	8	3.00	-3.01	89	Basic Materials
au	REA	Rea	97	36.59	22.83	37.16	24.88	22.94	12.85	46.07	84.40	643.10	509.00	-14.27	66.00	7	25.03	-2.78	72	Technology
au	WTC	Wisetech Global	97	16.32	13.45	13.75	14.02	10.48	10.66	38.61	85.01	318.96	172.33	-3.68	39.70	8	27.51	-2.41	66	Technology
au	BPT	Beach Energy	96	3.94	8.72	2.64	8.54	1.60	7.39	10.19	31.88	1083.00	179.70	12.21	345.10	8	1.53	-3.76	97	Energy
au	RWC	Reliance Worldwide	95	11.09	11.05	10.01	10.31	6.07	6.42	15.81	39.31	261.10	224.11	38.62	494.59	8	2.31	-2.89	81	Consumer Cyclicals
au	BHP	BHP	95	24.72	26.72	26.20	25.68	11.35	11.82	40.78	0.00	20098.00	10364.00	22.19	19704.00	7	3.20	-2.92	87	Basic Materials
au	HUB	Hub24	95	12.57	9.10	11.38	8.20	9.46	6.70	20.86	91.09	119.62	94.36	-7.71	59.50	7	26.99	-2.58	70	Financials
au	A2M	A2 Milk	95	17.20	21.89	13.51	17.15	9.96	12.92	13.93	44.89	272.41	261.80	-68.95	60.51	5	10.57	-2.83	82	Consumer Defensives
au	ANN	Ansell	90	6.64	10.29	6.45	10.46	3.87	6.14	10.08	39.10	272.90	219.90	29.22	754.90	6	2.65	-2.90	85	Healthcare
au	JBH	JB Hi-Fi	89	28.54	33.95	29.07	36.09	11.63	14.68	6.52	22.25	776.40	699.90	8.40	496.40	4	6.00	-2.97	86	Consumer Cyclicals
au	SHL	Sonic Healthcare	87	7.24	13.00	6.86	13.73	3.74	7.37	10.21	83.73	1239.74	716.00	51.94	4187.73	5	2.14	-2.47	88	Healthcare
au	JHX	James Hardie Industries	87	16.05	16.41	21.82	30.33	8.88	9.22	17.33	39.45	822.10	368.00	26.88	1096.20	6	3.98	-2.98	72	Basic Materials
au	NHC	New Hope	79	28.23	24.87	21.89	21.64	17.13	15.12	43.70	50.60	748.25	490.77	-16.80	86.57	4	4.70	-3.74	67	Energy
au	TLX	Telix Pharmaceuticals	61	6.93	-35.86	13.92	-98.69	5.19	-28.97	10.49	61.79	43.03	-5.46	-22.68	559.96	5	6.54	-4.15	57	Healthcare
au	ILU	Iluka Resources	61	8.32	15.25	10.24	18.32	6.54	10.93	24.35	45.36	123.30	-310.60	6.58	278.70	2	2.02	-2.33	70	Basic Materials

ASX Portfolio and Stock Commentary

Unlock the rest of this article with a 14 day trial

About the Author

Anton Crabbe

3 comments

Unlock the metrics for all these stocks and more...

Unlock the metrics for all these stocks and more...