Small Cap Favourites: McGrath Limited
McGrath shares are bouncing back after disappointing the market since IPO. We issued a trading recommending (for Invast clients only) back on 22 April outlining our reasons for identifying the stock as a trading opportunity.
The trading recommendation was published after all the bad news had been factored into the stock price. It wasn’t before the bad news, but after. Since we published our view, the share price continued to fall. Basically on no real news at all, just sentiment which was old and out of date. We maintained our view, held our conviction and that is now starting to pay off with our trading recommendation in the money.
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The problem with many investors or “stock market guys” is that they simply don’t understand what drives the property market and the upside potential that McGrath has, as an established brand, in a very fragmented market. Stock market guys tend to over analyse and over complicate things when it comes to investing. In the property space, the drivers are simple. McGrath is even more attractive because we see it as a key educator and facilitator in the transaction space, with brand and technology the two big factors that will drive disruption.
We continue to monitor our position with interest. Invast is very well placed to bring you some huge opportunities in the coming months. Execution costs for ASX stocks are 0.06% (6 basis points) above minimum charge, which means for a trade with a notional exposure of AUD 10,000, the applicable commission is only AUD 6.00.
To be onboard with the full set of benefits, you need to become an Invast client.
Chief Market Analyst
Peter Esho is a member of Invast’s Investment Committee and Chief Market Analyst at Invast Financial Services in Australia. The Invast’s Investment Committee constructs professionally constructed global thematic portfolios of Direct Market Access (DMA) CFDs over highly liquid global shares and ETFs through its new PortfolioInvestor platform. Since 1960, the Invast Group has grown to become one of the largest and most successful global brokerage firms, offering state-of-the-art trading technology and unparalleled service catering to all levels of traders.
Invast Financial Services Pty Ltd (ABN 48 162 400 035) is regulated by the Australian Securities and Investments Commission and holds an AFS Licence 438283 which authorises it to carry on a financial services business in Australia.