Light Trades 2023-05-02

UPDATE 02:45 pm: I just realised that I made a mis­take this morn­ing. BRB is under a takeover offer from RMS, which looks set to go through this month. It’s priced into the cur­rent BRB price, so there’s not much chance of it going up. I have a note about this in my check­list but I missed it this morn­ing, so please accept my apolo­gies. I’m going to sell today’s par­cel and well as the ear­li­er par­cel we bought in March (it was also one of the “pos­si­ble” buys men­tioned recent­ly), because the offer is for 2.82 RMS shares for each BRB share, and RMS is cur­rent­ly below its buy line, and I would­n’t buy it, so I don’t want to accept their shares either. 

I’m going to replace BRB with the fol­low­ing: 

1. NAB 

Nation­al Aus­tralia Bank Lim­it­ed (NAB) is a finan­cial ser­vices group that pro­vides a com­pre­hen­sive and inte­grat­ed range of bank­ing and finan­cial ser­vices includ­ing wealth man­age­ment through­out Aus­tralia and New Zealand, with branch­es locat­ed in Asia, the Unit­ed King­dom (UK) and the Unit­ed States (US). 

This is our sec­ond par­cel. 

With an Aver­age Dai­ly Trade of $134,239,000 it’s a LARGE cap stock**. 
Some of the rea­sons it scored well on our list this week include:

• Based on the share price of $28.82, it has a Qual­i­ty Score of 63% and a QAV Score of 0.20

2. AX1 

Accent Group (AX1) is a dig­i­tal­ly inte­grat­ed con­sumer busi­ness in the retail and dis­tri­b­u­tion sec­tors of brand­ed per­for­mance and lifestyle footwear, appar­el and acces­sories with over 760 stores across 26 dif­fer­ent retail ban­ners and exclu­sive dis­tri­b­u­tion rights for 18 inter­na­tion­al brands across Aus­tralia and New Zealand.

This is our sec­ond par­cel of AX1. 

With an Aver­age Dai­ly Trade of $2,619,000 it’s a LARGE cap stock**. 
Some of the rea­sons it scored well on our list this week include:

• Based on the share price of $2.54, it has a Qual­i­ty Score of 73% and a QAV Score of 0.12

SELLS

1. BFG

BFG has dropped below its Rule 1 trig­ger for one par­cel and the 3PTL for the oth­er, so we’ve sold both.

BUYS

CURRENT HOLDINGS

** Please remem­ber to review our Buy­ing Guide­lines to under­stand which cap bands you should be look­ing at and oth­er impor­tant con­sid­er­a­tions. 

DISCLOSURE 

In the inter­est of full dis­clo­sure, we would like to advise that, as of the date of this email, the QAV team cur­rent­ly hold these stocks in their per­son­al port­fo­lios:

FHE GRR IGL JHG KAR MQG NAB OML PRU QAN QBE RMS SGM SUL WAM WAF

Please note that our per­son­al hold­ings might not include the stocks we rec­om­mend in QAV Light. This is because we already have full port­fo­lios (15–20 stocks) and can only add new stocks if we have to sell some­thing. 
If you’re inter­est­ed in learn­ing more, please review our trad­ing and dis­clo­sure pol­i­cy.

FOR NEW MEMBERS

If you’re new to QAV Light, here’s a quick reminder on how it works. 

1. We send you an email every Mon­day advis­ing which stocks we are adding to our Light port­fo­lio.
2. You can copy our trades, but please remem­ber to review our Trad­ing Guide­lines to under­stand which cap you should be look­ing at and oth­er impor­tant con­sid­er­a­tions. And con­sult a finan­cial plan­ner before mak­ing any deci­sions.
3. We don’t rec­om­mend that you add stocks which are already in our port­fo­lio. Their posi­tion on our buy list might have changed since we rec­om­mend­ed them. Just start with the stocks rec­om­mend­ed after you become a mem­ber.
4. If one of the stocks we add breach­es one of our sell con­di­tions, we will sell it from our port­fo­lio and you’ll get an email advis­ing of the trade. Again, you can copy our trades, but seek finan­cial advice before mak­ing any deci­sions. And please check your Rule #1 price (see Trad­ing Guide­lines).

That’s it for today! 

If we decide to buy or sell some­thing, we’ll let you know. 

Got a ques­tion? 
[email protected]