Stock Tips Of The Week: LAU, WAF

We have two stocks to bring to your atten­tion to this week. This rec­om­men­da­tion is based on Tony’s analy­sis using data from Sun­day, 28 Nov 2021. 

1. Small Cap: LAU

Lind­say Aus­tralia Lim­it­ed (XASX:LAU) is into trans­porta­tion of refrig­er­at­ed and gen­er­al freight, logis­tic ser­vices asso­ci­at­ed with the import and export of hor­ti­cul­tur­al goods and mer­chan­dis­ing of rur­al sup­plies. The Lind­say Aus­tralia Group com­pris­es of Rur­al, Trans­port and Fresh Logis­tics.

• It has a QAV score of 0.27
• It has a new three point upturn
• Aver­age Dai­ly Trans­ac­tion is around $40,000
• Price-to-Oper­at­ing Cash Flow is 2.44
• Share price is less than the con­sen­sus val­u­a­tion
• Share price is also less than our IV #2
• Growth/PE is less than 1.5
• Yield is high­er than the cur­rent bank rate
• Finan­cial health is sta­ble
• Qual­i­ty score is 67%

Dis­clo­sure: Cameron has owned LAU for sev­er­al months.

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2. Large Cap: WAF

West African Resources Lim­it­ed (XASX:WAF) is a gold resource com­pa­ny which focused on acqui­si­tion, explo­ration and devel­op­ment of resource projects in Burk­i­na Faso, West Africa. The Com­pa­ny’s flag­ship project is the Boul­sa Gold Project.

Some of the rea­sons we like WAF include:

• QAV score of 0.14
• Aver­age Dai­ly Trans­ac­tion of $5.1 mil­lion
• Price-to-Oper­at­ing Cash Flow is 5.96, a lit­tle on the high end of us, but still safe­ly under 7
• Finan­cial health is strong and steady
• Share price is less than the con­sen­sus val­u­a­tion
• Share price is also less than our IV #2
• Cur­rent PE is the low­est in three years
• Growth / PE is less than 1.5
• Fore­cast IV is great than twice the cur­rent share price
• Qual­i­ty score is 86%

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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.

Also note that while we apply a high lev­el of sci­ence in our selec­tion process, some stocks may not per­form well in the short term. Like War­ren Buf­fett, we aim for a 60% suc­cess rate (mean­ing 60% of our stocks will do well in the short term, the oth­er 40% will not). So it’s very impor­tant to mon­i­tor your port­fo­lio and to sell the ones that don’t per­form to your expec­ta­tions. The way we do this in QAV is using Rule #1 and the 3PTL. If you’re not famil­iar with how to use those, please lis­ten to the pod­cast and con­sid­er join­ing QAV Club. 

We have very strict guide­lines about what we dis­close about our own port­fo­lios, and when we buy and sell stocks that appear as our stocks of the week. You can read our guide­lines here. 

Final­ly, 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.