We have two stocks to bring to your attention to this week. This recommendation is based on Tony’s analysis using data from Sunday, 7 Nov 2021. 

ABA

Our small cap stock this week is Auswide Bank Ltd (ASX:ABA), formerly known as Wide Bay Australia Ltd. It is an approved deposit-taking institution and licensed credit and financial services provider. It provides deposit, credit, insurance and banking services to personal and business customers across Australia, principally in regional and metropolitan Queensland, Sydney and Melbourne. They are based in my old hometown, Bundaberg, so that’s nice, but I didn’t give them any higher investment scores as a result!.

Some of the reasons we like ABA this week include:
  • QAV score of 0.37
  • Average Daily Transaction of $117,000
  • Price-to-Operating Cash Flow is 2.70
  • Share price is less than the Stock Doctor intrinsic valuation
  • Share price is also less than Book Value + 30%
  • PE is the lowest in the last few years
  • They have only recently breached their three point trend line buy signal
  • They have consistently increasing equity
  • Dividend yield is higher than the current bank rate
  • Financial health is stable and strong
  • Quality score is an impressive 100%!

WGX

Our large cap stock this week is Westgold Resources Limited (ASX:WGX), a successful West Australian gold producer with a dominant landholding in the Murchison region of the Mid-West. They operate a ‘hub and spoke model’ with 6 underground mines and several open pit mines providing ore to three processing hubs across the Murchison. t

They have recently been in discussions to acquire another stock we like, GCY, but that seems to have gone south recently.

Some of the reasons we like WGX this week include:
  • QAV score is 0.24
  • Average Daily Transaction is $2.9 million
  • Price-to-Operating Cash Flow of 3.33
  • Strong and stable financial health
  • Share price is less than the Stock Doctor intrinsic valuation
  • Share price is less than our own intrinsic valuation
  • PE is the lowest in the last few years
  • They have only recently breached their three point trend line buy signal
  • They have consistently increasing equity
  • Quality score 80%

Please Note: 

Our recommendations are based on the share price as of the date of the download. If the share price changes, this will affect the QAV score and its ranking on our buy list, so please take price changes into account before making any investing decisions.

Please also note that this isn’t personal financial advice and you should consult a financial planner before making any investment decisions.

Each Monday we publish our full buy list for QAV Club members.

Want free weekly stock tips?

Every Monday we publish an email containing two ASX stocks (one small cap and one large cap) that Tony thinks offer the best value buys for that week. Sign up now to get your copy completely free!