Stock Tips Of The Week — ABA, WGX

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!.

• 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.

• 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.