In this episode of Wealth & Toil, hosts Dylan Pargiter-Green and Luke Larative are joined by Ben Richards from Seneca to discuss small caps in the Australian market.
- Overweighting small caps
Overweighting small caps due to the nearing end of the interest rate cycle, expecting small caps to outperform in a falling rate environment.
- Recent performance of small caps
Ben highlights the discounts small caps are trading at compared to long-term averages and the potential for better returns in small caps during bull markets.
- RPM Global
They discuss opportunities in small caps, including RPM Global, a mining software provider undergoing a transition to a software-as-a-service model.
RPM Global's transformation has led to significant profit growth, making it attractive for investors.
The discussion extends to macroeconomic factors affecting mining-related businesses, such as high gold prices and falling interest rates.
- Monash IVF
They mention Monash IVF as another potential takeover target due to its stable revenue stream and high-value service.
Monash IVF's growth strategy and strong market share in Australia make it an appealing investment option.
The conversation touches on the stability of demand in healthcare businesses like IVF. Potential for acquisition and its growth prospects in the industry.
- ETFs in Aus small caps
This is a terrible idea for most, if not all. Steer clear.
- Global Data Centre Group
Another small cap opportunity, Global Data Centre Group owns 1% of AirTrunk. Could be worth more than $3 per share.
General Advice Warning: This podcast is intended and contains general information on financial strategies, investments, and products only. Whilst Luke and Dylan are both licenced Financial Advisors, we don’t know your personal circumstances, goals or objectives. We highly recommend that you reach out to your Financial Advisor or investment professional to discuss any of the topics we have covered today before taking action.
Our full disclosure, copies of our financial services guides and additional information about Seneca Financial Solutions and Bold Wealth can be found below:
https://www.boldwealth.com.au/
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