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It is now the Future Generation Investment Forum, where leading ASX fund managers name their best stock choices.
The future generation refers to Future Generation Investment Company Ltd (ASX: FGX) and Future Generation Global Investment Co Ltd (ASX: FGG). These are two publicly traded investment companies that invest in free money managers. They do not charge management fees or investment costs.
Instead, 1% of the NTA is donated to youth-related charities. It's a very good structure and cause.
The forum brings together some of the fund managers for some investment advice. Here are a few:
Blake Henricks from Firetrail Investments selected Worleyparsons Limited (ASX: WOR), the Australian engineering activity. He thinks it's a good choice because of the current situation in the resource cycle and his ability to earn more business. In addition, resource companies will have to spend capital only to maintain production. He has recently improved his areas of activity, such as balance sheet and costs. Henricks is currently trading at a price / earnings ratio of around 12x.
Nick Griffin from Munro Partners selected Treasury Wine Estates Ltd (ASX: TWE), owner of a portfolio of wine brands. China continues to grow and a rapidly growing middle clbad is increasing the demand for quality Australian wine. Mr Griffin said he was trading 20 times his projected profits and could increase his profits by 20% a year over the next three years.
Geoff Wilson of Wilson Asset Management selected Blue Sky Alternatives Access Fund Ltd. (ASX: BAF) and Myer Holdings Ltd (ASX: MYR). For Mr. Myer, Wilson thinks John King's new leadership will change things. For the Blue Sky LIC, he thinks that the price of the action could return to the NTA if WAM had the management.
Oscar Oberg of Wilson Asset Management selected Baby Bunting Group Ltd (ASX: BBN), the retailer of baby products. He and the WAM team believe that Baby Bunting can gain more from the $ 2.4 billion baby market. A number of competitors have recently closed, about 70 stores have left the market, including Babies R Us. He thinks it's a defensive idea and he can reach 80 stores faster than expected. Baby Bunting could increase private label sales, up to 50% of sales, while increasing EBITDA margins by 6% to 10%. He thinks Baby Brunting could increase his income by 30%.
Take away
Many interesting choices here and all are good candidates to beat the ASX over the next 12 months. If I could only choose two choices, it would be the treasure wines and the Blue Sky LIC. They seem to be defensive options at good prices that could grow profits at attractive rates over the next few years.
Tristan Harrison, a contributor to Motley Fool, holds no position in any of the actions mentioned. Motley Fool Australia owns shares and has recommended Treasury Wine Estates Limited. We fools may not all have the same opinion, but we all agree that taking into account a wide range of ideas makes us better investors. Motley Fool has a disclosure policy. This article contains only general investment tips (under AFSL 400691). Authorized by Scott Phillips.
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