Maximise your winners (and 2 ASX 300 examples that show you how)

LiveWire10-23

Here's a pop quiz for you. What do Dicker Data (ASX: DDR) and Jumbo Interactive (ASX: JIN) have in common? At first, I didn't know either. Until Steve Johnson, Chief Investment Officer and Founder at ...

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Until Steve Johnson, Chief Investment Officer and Founder at ...</p>\n\n<a href=\"https://www.livewiremarkets.com/wires/maximise-your-winners-and-2-asx-300-examples-that-show-you-how\">Source Link</a>\n\n</div>\n","source":"livewire_stock","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Maximise your winners (and 2 ASX 300 examples that show you how)</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMaximise your winners (and 2 ASX 300 examples that show you how)\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-23 04:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.livewiremarkets.com/wires/maximise-your-winners-and-2-asx-300-examples-that-show-you-how><strong>LiveWire</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Here's a pop quiz for you. What do Dicker Data (ASX: DDR) and Jumbo Interactive (ASX: JIN) have in common?\nAt first, I didn't know either. Until Steve Johnson, Chief Investment Officer and Founder at ...</p>\n\n<a href=\"https://www.livewiremarkets.com/wires/maximise-your-winners-and-2-asx-300-examples-that-show-you-how\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK7068","symbol_name":"技术产品经销商","start_time":0,"source_url":"https://www.livewiremarkets.com/wires/maximise-your-winners-and-2-asx-300-examples-that-show-you-how","article_id":"2477362045","we_media_id":null,"thumbnails":[],"rights":{"source":"livewire_stock","url":"https://www.livewiremarkets.com/wires/maximise-your-winners-and-2-asx-300-examples-that-show-you-how","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2477362045","pubTimestamp":1729627226,"sourceInfo":{"source_id":"livewire_stock","name":"Livewire Markets"},"weMediaInfo":null,"summary":"Here's a pop quiz for you. What doDicker Data  and Jumbo Interactive  have in common?At first, I didn't know either. Until Steve Johnson, Chief Investment Officer and Founder at Forager Funds Management told his audience of investors at the team's recent September quarter webinar: They are both stocks that Forager should have held onto for a lot longer.The team thought they were onto a good thing when they first purchased Dicker. But selling was a mistake. Dicker Data rallied more after they sold than while it was owned. Had they held on another couple of years, they would be looking at 600% returns as opposed to what they actually got.JIN was an even more costly exit. They left with a 200% gain but could have had an eight-fold return. Both Dicker Data and Jumbo Interactive also eventually found their way into the ASX 300 - but without Forager Funds Management invested in them. It's a mistake Johnson is determined not to make again.If you add the current and previous financial years to","collect":0,"end_time":0,"defaultTopTitle":"livewiremarkets.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK7068":"技术产品经销商","BK7078":"赌场与赌博","MAH.AU":"MACMAHON HOLDINGS LIMITED","DDR.AU":"DICKER DATA LTD","XAO.AU":"标普/澳交所 普通股指数","PRN.AU":"PERENTI LTD","XJO.AU":"标普/澳交所 200指数","XKO.AU":"标普/澳交所 300指数","TYR.AU":"TYRO PAYMENTS LTD","GTK.AU":"GENTRACK GROUP LTD","RMD.AU":"Resmed DRC","BK7033":"数据处理与外包服务","BK7007":"医疗保健设备","BTH.AU":"BIGTINCAN HOLDINGS LTD","BK7158":"交易和支付处理服务","BK7503":"科技股","RUL.AU":"RPMGlobal Holdings Ltd","BK7016":"应用软件","JIN.AU":"JUMBO INTERACTIVE LTD","BK7500":"支付概念","BK7501":"新冠治疗股","BK7095":"多种金属与采矿"},"translate_title":"最大化您的赢家（以及2个ASX 300示例向您展示如何做到这一点）","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"TYR.AU":1,"RUL.AU":1,"RMD.AU":1,"PRN.AU":1,"MAH.AU":1,"JIN.AU":1,"GTK.AU":1,"BTH.AU":1,"DDR.AU":1,"XKO.AU":0.9,"XJO.AU":0.9,"XAO.AU":0.9},"content_text":"Here's a pop quiz for you. What do Dicker Data (ASX: DDR) and Jumbo Interactive (ASX: JIN) have in common?\nAt first, I didn't know either. Until Steve Johnson, Chief Investment Officer and Founder at Forager Funds Management told his audience of investors at the team's recent September quarter webinar: They are both stocks that Forager should have held onto for a lot longer.\n\n\n\n\n\n\n\n\n\nSource: Bloomberg, Forager\nThe team thought they were onto a good thing when they first purchased Dicker\nData in mid-2015. Less than four years later, they had made a tidy sum and sold out.\nBut selling was a mistake. Dicker Data rallied more after they sold than while it was owned. Had they held on another couple of years, they would be looking at 600% returns as opposed to what they actually got.\nJIN was an even more costly exit. They left with a 200% gain but could have had an eight-fold return. Both Dicker Data and Jumbo Interactive also eventually found their way into the ASX 300 - but without Forager Funds Management invested in them. It's a mistake Johnson is determined not to make again.\n\"We are very cognisant that when we get things right, we need to make more money out of them,\" Johnson admitted.\nAnd that, in large part, explains why the team haven't sold all of their stakes in software companies RPMGlobal (ASX: RUL) or Gentrack (ASX: GTK) \"despite them being up multiples of our initial purchase price.\" Both have also recently been added to the ASX 300.\nIn this wire, we'll uncover some more insights from the Forager team, including those from Johnson's colleagues Alex Shevelev and Harvey Migotti.\n\n\n\n\n\n\n\n\n\nForager's Alex Shevelev, Steve Johnson, and Harvey Migotti\nWhat the team has done with these winners\nGentrack used to be a business that was earmarked as \"too hard\" for most investors:\n\"We were having a look at this business when it had had multiple earnings downgrades. No one really wanted to have anything to do with it,\" Shevelev, Portfolio Manager of the Forager Australian Shares Fund said.\nBut now that the business has turned around:\n\"There's a lot more investor attention, there's a lot more liquidity, and a lot more sell-side coverage,\" he added.\nThe share price is up sixfold over the past few years.  “We are largely out of that position by this point,\" Shevelev added. But Forager investors have captured significantly more of the upside.\nRPM Global is up fourfold over the past six years but Forager still owns the stock.\nJohnson contrasted the technology stocks with the Australian Fund’s investments in the mining services space (Perenti Global (ASX: PRN) and Macmahon Holdings ASX: MAH)). \n\"They've [PRN and MAH] both turned their minds to generating free cash [flow]... Once you start to temper CAPEX spending expectations, you really can pump out a lot of free cash flow, especially given the valuations involved here,\" Shevelev noted.\nIf you add the current and previous financial years together, Shevelev says Perenti should generate “over a third of its [value] in free cashflow”. But it is important to recognise that, unlike RPMGlobal and Gentrack, these are not businesses other investors will ever get too excited about (and for good reason.)\nQuality is helping to mitigate risk\nIn a quarter where the Forager Australian Shares Fund returned a healthy 6%, Johnson is turning his mind to better managing the next market downturn.\n\"We want to position ourselves to better take advantage of the next market downturn when it comes along,\" Johnson said.\n\"The better-quality stocks that we have added to the portfolio in particular have made an enormous difference to returns and a focus on portfolio liquidity has really helped as well,\" Johnson added. A perfect example of this: Australian-American healthcare darling ResMed (ASX: RMD).\n\"That stock sold off heavily around this time last year, to a point where it was meeting our lower return hurdles to buy those better quality businesses, and giving us an opportunity to add Resmed to the portfolio,\" he said. While the Forager team recognises they can add the most value at the small end of the market, these larger, better-quality businesses can play an important role in the portfolio, particularly in more buoyant markets.\nThis principle also applies to overseas investments\nTake four of the International Shares Fund's long-term holdings and their performances in the last three months alone. All have well and truly outperformed the MSCI ACWI Index - and all are doing exactly what Forager hoped they would:\n\n\n\n\n\n\n\n\n\n\nSource: Forager Funds Management\n\"They're doing what they're designed to do - grind higher and compound. Most of these are relatively resilient businesses that we bought during market selloffs,\" says Harvey Migotti, Portfolio Manager of the Forager International Shares Fund.\n\"We have taken some profits in certain cases, but they continue to be decent chunks of our portfolio and exposure and we're always going to have that quality compounder basket in some shape or form,\" Migotti added.\nThose quality compounders have performed well, but where is Migotti finding the next year’s best performers? The land of the rising sun.\n\"I don't think it's a massively out-of-consensus call. A lot of people have been talking about Japan more over the past 12, 18, and 24 months. But we've identified some really exciting themes here,\" Migotti said, adding that one of those is digitisation. \n\"Cloud spending in Japan is only 10% of total IT spending. That number is 37% around the world. Cashless payments in Japan are only 40%. They're closer to 60%+ or even 80% in some cases in many other countries. The same thing with online purchases, digital shopping, etc. So that's all happening and it's happening very fast,\" he added.\nTwo such stocks they are looking at with this theme in mind are Shift Inc. and OBIC Business Consultants. Both have done well since they were first bought in August.\n\n\n\n\n\n\n\n\n\nSource: Forager Funds Management\n\nBut it's not all been sunshine and roses\nThe Australian Fund’s investment in Bigtincan Holdings (ASX: BTH) is an example of this:\n\"In this case, [BTH’s revenue] turned out to be less sticky and recurring than we had initially envisaged,\" Shevelev said. \nA year ago, the share price was 90 cents. With the share price languishing at 12 cents until recently, it has become the subject of two takeover offers - one is a private equity takeover bid where the value is just 20 cents per share and the other is an  offer in shares from an investment vehicle already listed on the Nasdaq in the US. The Forager team openly admitted on the webinar that they prefer the first of these two options.\nAnother company making headlines is Tyro Payments (ASX: TYR). The company is in the middle of a political stoush concerning how people pay for their credit card transactions. But despite the headlines, Shevelev and the team are holding on:\n\"Tyro is a much broader payments terminal business than just that. We think it's a small part of their business and it can be absorbed in other parts of their business,\" he said.\nWhile Tyro’s share price is down 30% over the past few months, the Forager team think it can be one of those businesses held in much higher regard a few years down the track.\n\n\n\nIf you want to catch the entire webinar, you can click here:\n\n\n\n\n\n\n\n \n\n\nNever miss an update\n\n    Enjoy this wire? Hit the ‘like’ button to let us know. \n    Stay up to date with my current content by \n    following me below and you’ll be notified every time I post a wire","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2477362045"}