September, 2023
The S&P/ASX Small Ordinaries Index (XSO) declined by 1.9% during the quarter. The Small Industrials declined by 1.9%, while the Small Resources also declined by 1.9%. The XSO finished the month on a 2yr forecast P/E ratio of 15.8x which is 7.3% below its 5-year average. This valuation is a 6.1% premium to the ASX200.
The best performing sectors for the quarter were Energy (+27.4%), Wholesale, Distribution & Manufacturing (+18.7%), Retail (+12.9%) and Telecommunications (+12.2%). The worst performing sectors for the quarter were Metals & Mining - Critical Minerals (-26.7%), Metals & Mining - Base Metals (-18.8%), Biotechnology (-16.3%) and Industrial Technology (-15.6%).
The best performing stocks within the XSO Index during the quarter were Deep Yellow (DYL +74.2%), Megaport (MP1 +63.0%), Siteminder (SDR +58.6%), and Boss Energy (BOE +56.5%). Deep Yellow and Boss Energy are both exposed to the development and mining of uranium. The price of near term uranium futures have increased by 45% this year as nuclear energy is increasingly seen as the solution to zero carbon base load power. Boss Energy has also announced promising drilling results and is nearing production at its mine in South Australia. Megaport increased EBITDA guidance during the quarter.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/EASC_Net_Sep23.pdfAugust, 2023
The S&P/ASX Small Ordinaries Index (XSO) decreased by 1.3% during the month. The Small Industrials decreased by 1.5%, while the Small Resources decreased by 0.9%. The XSO finished the month on a 2yr forecast P/E ratio of 17.1x which is 0.3% above its 5-year average. This valuation is a 9.6% premium to the ASX200.
The best performing sectors for the month were Wholesale, Distribution & Manufacturing (+11.7%), Retail (+9.2%), Automotive (+8.4%), and Precious Metals (+7.1%). The worst performing sectors were Biotechnology (-11.1%), Critical Minerals (-9.7%), Industrial Technology (-9.3%), and Base & Industrial Metals (-9.2%).
The best performing stocks within the XSO Index were Audinate (AD8 +48.3%), Deep Yellow (DYL +37.2%), Red 5 (RED +36.1%), and Baby Bunting (BBN +35.2%). Audinate’s FY23 results showed strong revenue growth and good cost control. Deep Yellow benefited from a stronger uranium price. Red 5 reported a strong profit result and Baby Bunting has had a better than expected start to FY24.
The worst performing stocks in the XSO index were Mesoblast (MSB -55.5%), Chalice Mining (CHN -39.6%), IRESS (IRE -38.3%), and Core Lithium (CXO -38.3%). Mesoblast failed again to convince the FDA to approve its first of a kind remestemcel-L biologic. Chalice released their Gonneville scoping study that contained a much higher capex estimate than expected and somewhat optimistic commodity price assumptions. IRESS reported its first operating result post its recent investor day and disappointed on almost every expected metric. Core Lithium continued to disappoint operationally requiring a further capital raise.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/EASC_Net_Aug23.pdfJuly, 2023
The S&P/ASX Small Ordinaries Index (XSO) increased 3.5% during the month. The Small Industrials increased by 4.8%, while the Small Resources increased by 0.1%. The XSO finished the month on a 2yr forecast P/E ratio of 16.8x which is 1.5% below its 5-year average. This valuation is a 7.9% premium to the ASX200.
The best performing sectors for the month were Banks (+12.6%), Retail (+11.3%), Mining Services & Engineering (+11.1%), and Wholesale, Distribution & Manufacturing (+10.9%). The worst performing sectors were Critical Minerals (-10.0%), Healthcare (-0.7%), Infrastructure & Utilities (+0.5%), and Metals & Mining - Steel (+0.8%).
The best performing stocks within the XSO Index were SiteMinder (SDR +44.2%), Megaport (MP1 +41.3%), Kogan. com (KGN +25.4%), and Australian Ethical (AEF +23.2%). SiteMinder reported better than expected 4Q cashflow. Megaport upgraded guidance. Kogan announced preliminary FY23 EBITDA that was ahead of expectations.
The worst performing stocks in the XSO index were Bowen Coking Coal (BCB -31.3%), Core Lithium (CXO -29.0%), Lake Resources (LKE -25.0%), and Syrah Resources (SYR -22.7%). Bowen Coking Coal reported a weaker than expected 4Q net cashflow. Core Lithium and Lake Resources both updated medium term production expectations downward with higher operating costs. Syrah announced that production was paused in May and June.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/EASC_Net_Jul23-2.pdfJune, 2023
The S&P/ASX Small Ordinaries Accumulation Index returned -0.5% for the quarter. The fund outperformed the market and returned 2.1% (net) over the same period.
The S&P/ASX Small Ordinaries Index (XSO) was down 0.5% during the quarter. The Small Industrials increased by 2.3%, while the Small Resources declined by 7.5%. The XSO finished the month on a 2yr forecast P/E ratio of 15.9x which is 7.0% below its 5-year average. This valuation is a 6.5% premium to the ASX200.
The best performing sectors for the quarter were Building & Construction Products (+18.9%), Real Estate Management & Development (+16.1%), Biotechnology (+12.8%) and Asset Management (+8.7%). The worst performing sectors were: Metals & Mining - Precious (-13.6%), Wholesale, Distribution & Manufacturing (-13.2%), Banks (-11.9%) and Metals & Mining - Steel (-10.9%).
The best performing stocks within the XSO Index during the quarter were Leo Lithium (LLL +105.8%), Megaport (MP1 +75.2%), Temple & Webster (TPW +70.9%), and Telix Pharma (TLX +62.6%). Leo Lithium announced a $106m strategic placement to battery maker Ganfeng. Megaport is viewed a beneficiary of AI. Temple & Webster announced a better than expected update in early May.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/EASC_Net_Jun23.pdfMay, 2023
The S&P/ASX Small Ordinaries Accumulation Index returned -3.3% for the month. The fund outperformed the market and returned -0.9% over the same period.
The S&P/ASX Small Ordinaries Index (XSO) declined 3.3% during the month. The Small Industrials declined by 1.7%, while the Small Resources declined by 7.1%. The XSO finished the month on a 2yr forecast P/E ratio of 15.6x which is 8.7% below its 5-year average. This valuation is a 8.1% premium to the ASX200. The best performing sectors for the month were Biotechnology (+4.3%), Industrial Technology (+4.0%), Building & Constr Products (+3.4%), and IT Products & Services (+2.8%). The worst performing sectors were Retail (-13.6%), Base & Industrial Metals (-10.9%), Automotive (-9.8%), and Precious Metals (-2.5%).
The best performing stocks within the XSO Index were Leo Lithium (LLL +69.5%), ADBRI (ABC +36.3%), Life360 (360 +34.1%), and OFX (OFX +28.4%). Leo Lithium received funding from a strategic placement from Ganfeng Lithium. ADBRI disclosed that underlying NPAT for Jan-Apr 2023 was significantly higher than the same period last year. Life360 reported a strong 1Q23 update.
The worst performing stocks in the XSO index were 29metals (29M -40.5%), Vulcan Energy (VUL -38.6%), 5E Advanced Materials (5EA -35.4%), and Accent (AX1 -30.1%). 29metals disclosed higher capex at its Capricorn Copper & Golden Grove mines. Vulcan Energy raised equity at a significant discount. The market was disappointed with 5E Advanced Materials 3Q update.
File:April, 2023
The S&P/ASX Small Ordinaries Accumulation Index returned 2.8% for the month. The fund outperformed the market and returned 3.2% over the same period.
The S&P/ASX Small Ordinaries Index (XSO) increased 2.8% during the month. The Small Industrials increased by 3.6%, while the Small Resources increased by 0.7%. The XSO finished the month on a 2yr forecast P/E ratio of 15.6x which is 8.5% below its 5-year average. This valuation is a 6.7% premium to the ASX200. The best performing sectors for the month were Biotechnology (+14.8%), Building & Construction Products (+9.8%), Aged Living (+8.0%), and Real Estate Management (+7.9%).
The worst performing sectors were Metals & Mining - Steel (-5.5%), Wholesale, Distribution & Manufacturing (-4.0%), Industrial Technology (-3.2%), and Metals & Mining - Critical Minerals (-2.5%). The best performing stocks within the XSO Index were Telix Pharma (TLX +47.1%), Megaport (MP1 +36.7%), Blackmores (BLK +35.0%), and Codan (CDA +34%). Telix reported a very strong 1Q trading update. Megaport provided higher FY23 earnings guidance while Blackmores was subject to a takeover offer.
The worst performing stocks in the XSO index were Syrah Resources (SYR -37.0%), NOVONIX (NVX -22.1%), 5E Advanced Materials (5EA -18.8%), and Hastings Technology (HAS -17.7%). Syrah reported a weak 1Q production and sales update. Novonix received a 1st negative vote on the remuneration report at the AGM. Novonix, like Syrah is involved in the production of graphite for batteries.
File:March, 2023
The S&P/ASX Small Ordinaries Accumulation Index returned +1.9% for the quarter. The fund outperformed the market and returned 2.8% (net) over the same period.
The S&P/ASX Small Ordinaries Index (XSO) was up 1.9% during the quarter. The Small Industrials increased by 1.3%, while the Small Resources increased by 2.9%. The XSO finished the month on a 2yr forecast Price-to-Earnings (P/E) ratio of 15.2x which is 10.7% below its 5-year average. This valuation is a 6.4% premium to the ASX200.
The best performing sectors for the quarter were Wholesale, Distribution & Manufacturing (+18.1%), Automotive (+13.0%), Infrastructure & Utilities (+10.9%) and Biotechnology (+9.0%). The worst performing sectors were: Industrial Technology(-17.5%), Aged Living (-10.0%), Agricultural Products (-8.0%), and Real Estate Management and Developers (-6.0%).
The best performing stocks within the XSO Index during the quarter were Liontown Resources (LTR +95.5%), Neuren Pharma (NEU +70.0%), Westgold Resources (WGX +50.0%), and Accent Group (AX1 +49.0%). Liontown received a non binding offer at a substantial premium from US lithium major Albemarle. Neuren Pharma received FDA approval for the sale of DAYBLU, a treatment for Rett Syndrome. Westgold Resources responded to higher gold prices and a positive update from its BIg Bell mine.
The worst performing stocks in the XSO index were Jervois Global (JRV -76.0%), Bravura (BVS -59.9%), Lake Resources (LKE -44.4%), and 29metals (29M -38.0%). Jervois, a prospective cobolt miner, has halted its US project as current cobolt prices are not strong enough to make the project viable. Bravura completed a deeply discounted capital raising while Lake Resources responded to lower lithium prices and a substantial sell down by management.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/EASC_Net_Mar23.pdfFebruary, 2023
The S&P/ASX Small Ordinaries Accumulation Index returned 6.6% for the month. The Eiger Australian Small Companies Fund underperformed the market and returned 6.2% over the same period.
The S&P/ASX Small Ordinaries Index (XSO) was up 6.6% during the month. The Small Industrials increased by 6.3%, while the Small Resources increased by 7.3%. The XSO finished the quarter on a 2yr forecast P/E ratio of 18.3x which is 7.1% above its 5-year average. This valuation is a 21.5% premium to the ASX200. The best performing sectors for the month were Retail (+18.7%), Metals & Mining - Critical Minerals (+16.1%), Healthcare (12.0%), and Media (+11.3%). The worst performing sectors were: Automotive (+1.6%), Biotechnology (+1.3%), Agricultural Products (+1.0%), and Telecommunications (-0.5%). The best performing stocks within the XSO Index were Westgold Resources (WGX +38.9%), Sayona Mining (SYA +36.8%), City Chic (CCX 35.8%), and Adairs (ADH +30.9%). Westgold gave an operational update and affirmed guidance. Sayona gained on lithium sector strength. City Chic benefitted from the market’s positive reaction to talk of involvement by investor Brett Blundy. Holiday trading period optimism supported the Adairs share price.
The worst performing stocks in the XSO index were Austal (ASB -20.2%), Betmakers Technology (BET -18.2%), OFX Group (OFX -17.2%), and BrainChip (BRN -15.4%). Austal reduced EBIT guidance by 40% weeks after previous guidance was given. Betmakers restructured it’s board and management, demoting the CEO. OFX provided dissapointing Q3 results, whilst Brainchip issued a capital call with a funding partner before announcing Q4 cashflow.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/EASC_Net_Jan23-1.pdfJanuary, 2023
The S&P/ASX Small Ordinaries Accumulation Index returned 6.6% for the month. The Eiger Australian Small Companies Fund underperformed the market and returned 6.2% over the same period.
The S&P/ASX Small Ordinaries Index (XSO) was up 6.6% during the month. The Small Industrials increased by 6.3%, while the Small Resources increased by 7.3%. The XSO finished the quarter on a 2yr forecast P/E ratio of 18.3x which is 7.1% above its 5-year average. This valuation is a 21.5% premium to the ASX200. The best performing sectors for the month were Retail (+18.7%), Metals & Mining - Critical Minerals (+16.1%), Healthcare (12.0%), and Media (+11.3%). The worst performing sectors were: Automotive (+1.6%), Biotechnology (+1.3%), Agricultural Products (+1.0%), and Telecommunications (-0.5%). The best performing stocks within the XSO Index were Westgold Resources (WGX +38.9%), Sayona Mining (SYA +36.8%), City Chic (CCX 35.8%), and Adairs (ADH +30.9%). Westgold gave an operational update and affirmed guidance. Sayona gained on lithium sector strength. City Chic benefitted from the market’s positive reaction to talk of involvement by investor Brett Blundy. Holiday trading period optimism supported the Adairs share price.
The worst performing stocks in the XSO index were Austal (ASB -20.2%), Betmakers Technology (BET -18.2%), OFX Group (OFX -17.2%), and BrainChip (BRN -15.4%). Austal reduced EBIT guidance by 40% weeks after previous guidance was given. Betmakers restructured it’s board and management, demoting the CEO. OFX provided dissapointing Q3 results, whilst Brainchip issued a capital call with a funding partner before announcing Q4 cashflow.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/EASC_Net_Jan23.pdfDecember, 2022
The S&P/ASX Small Ordinaries Accumulation Index returned 7.5% for the quarter. The Eiger Australian Small Companies Fund underperformed the market and returned 5.3% over the same period.
The S&P/ASX Small Ordinaries Index (XSO) was up 7.5% during the Quarter. The Small Industrials increased by 6.6%, while the Small Resources increased by 10.3%. The XSO finished the quarter on a 2yr forecast P/E ratio of 14.7x which is -14.0% below its 5-year average. This valuation is a 3.2% premium to the ASX200.
The best performing sectors for the quarter were: Metals & Mining Steel (+32.1%), Metals & Mining - Precious (+25.7%), Aged Living (+20.5%), and Mining Services & Engineering (+20.4%). The worst performing sectors were: Real Estate Management & Development (-2.4%), Agricultural Products (-3.7%), Commercial Services (-5.7%, and Metals & Mining - Critical Minerals (-10.9%).
The best performing stocks within the XSO Index were Chalice Mining (CHN +60.3%), Polynovo (PNV +55.4%), Champion Iron (54.8%), and Telix Pharmaceuticals (TLX +53.7%). Chalice Mining announced strong drill results which expanded its resource, Polynovo and Champion Iron both released positive quarterly results, and Telix updated the market on trial and approval progress. The worst performing stocks in the XSO index were City Chic (CCX -63.7%), Jervois Global (JRV -45.2%), 5E Advanced Materials (5EA -41.9%), and Ioneer (INR -40.2%). City Chic provided an updated outlook which confirmed the market’s concerns around high inventory. Jervois Global gave a quarterly update and launched a capital raising. 5EA continued to show weakness off the back of the CEO’s resignation in October, whilst Ioneer declined after missing guidance.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/EASC_Net_Dec22-1.pdfNovember, 2022
The S&P/ASX Small Ordinaries Accumulation Index returned 4.9% for the month. The Eiger Australian Small Companies Fund underperformed the market and returned 2.1% over the same period. The S&P/ASX Small Ordinaries Index (XSO) was up +4.9% during the month. The Small Industrials increased by +2.7%, while the Small Resources increased by +11.6%. The XSO finished the month on a 2yr forecast Price-to-Earnings (P/E) ratio of 14.7x which is -15.5% below its 5-year average. This valuation is a 1.6% discount to the ASX200.
The best performing sectors for the month were: Metals & Mining - Base & Industrial Metals (+25.7%), Metals & Mining Steel (+25.6%), Metals & Mining - Precious (+21.1%), and Industrial Technology (+13.2%). The worst performing sectors were: Agricultural Products (-6.9%), Banks (-0.7%), Media (-0.2%), and Commercial Services (0.0%). The best performing stocks within the XSO Index were EML Payments (EML +59.3%), Arafura Rare Earths (ARU +54.2%), Bellevue Gold (BGL +48.7%), and Aurelia Metals (AMI 47.6%).
EML reported easing of regulatory restrictions and provided a trading and guidance update. Arafura gave a favourable project update and announced signing of an offtake agreement. Bellevue Gold and Aurelia Metals updated the market on their project progress. The worst performing stocks in the XSO index were City Chic (CCX -39.1%), Bravura Solutions (BVS -35.3%), Pact Group (PGH -26.1%), 5E Advanced Materials (5EA -22.6%). City Chic provided an updated outlook at its Annual General Meeting (AGM) which confirmed the market’s concerns. Bravura materially lowered FY23 guidance, as did Pact. 5EA continued to show weakness off the back of the CEO’s resignation in October.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/EASC_Net_Nov22-1.pdfOctober, 2022
The S&P/ASX Small Ordinaries Accumulation Index returned 6.5% for the month. The Eiger Australian Small Companies Fund outperformed the market and returned 8.9% over the same period. The S&P/ASX Small Ordinaries Index (XSO) was up 6.5% during October. The Small Industrials increased by 7.4%, while the Small Resources increased by 3.8%. The XSO finished the month on a 2yr forecast P/E ratio of 13.0x which is 23.5% below its 5-year average. This valuation is a 1.7% discount to the ASX200.
The best performing sectors in October were: Biotechnology (17.4%), Metals & Mining - Critical Minerals (12.8%), REITs (12.2%), and Infrastructure & Utilities (11.9%). The worst performing sectors during the month were Metals & Mining - Base & Industrial Metals (-6.8%), Commercial Services (0.5%), Metals & Mining - Steel (0.6%), and Metals & Mining - Precious (1.2%). The best performing stocks within the XSO Index were Polynovo (PNV 53.9%), Novonix (NVX 52.3%), Telix Pharmaceuticals (TLX 46.5%), and Syrah Resources (SYR 45.7%). Polynovo provided better than expected 1Q sales, Novonix received a US$150m funding grant from the US Government, Telix gave several updates relating to drug trials and drug registration progress, whilst Syrah announced it would resume operations at it’s Mozambique mine after prolonged strikes.
The worst performing stocks within the XSO Index were EML Payments (-49.4%), Aurelia Metals (AMI -47.5%), Codan (CDA -31.8%), St. Barbara (SBM -31.1%). EML Payments fell on further regulatory concerns. EML Payments agreed to restrict new lines of business in the near term. Aurelia Metals released an underwhelming project update and lower near term guidance. Codan lowered guidance whilst St. Barbara reported lower production and higher costs.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/EIGER_EASC_Net_Oct22.pdfSeptember, 2022
The S&P/ASX Small Ordinaries Accumulation Index returned -0.5% for the quarter. The Eiger Australian Small Companies Fund outperformed the market and returned 7.1% over the same period. The S&P/ASX Small Ordinaries Index (XSO) was down 0.47% during the September quarter. The Small Industrials decreased by 0.98%, while the Small Resources increased by 0.94%. The XSO finished the month on a 2yr forecast P/E ratio of 14.9x which is 12.7% below its 5-year average. This valuation is a 17.0% premium to the ASX200.
The best performing sectors in the September quarter were: Metals & Mining – Advanced Materials (30.2%), Mining Services & Engineering (16.0%), Energy (12.4%), and Retail (12.4%). The worst performing sectors during the month were Consumer Discretionary & Leisure (-11.9%), Agricultural Products (-9.3%), Wholesale, Distribution & Manufacturing (-8.2%), and Metals & Mining - Base & Industrial Metals (-8.1%). The best performing stocks within the XSO Index were Tyro Payments (TYR 116.7%), Nearmap (NEA 95.2%), New Hope (NHC 81.8%), and Life360 (360 74.3%). Tyro surged on end of year results and rumours of takeover interest. Nearmap announced strong results and was bought out by Thoma Bravo. New Hope continued to be bouyed by strong coal prices and Life360 gained on a broader recovery in the tech sector. The worst performing stocks in the XSO index were Appen (APX -44.4%), EML Payments (EML -35.0%), Australian Strategic Materials (ASM -32.2%), and Aussie Broadband (ABB -31.1%). Appen released weak end of year results and outlook. EML Payments continued to call after a failed takeover talk and governance concerns. ASM appears to have fallen on investor caution around ongoing projects. Aussie Broadband fell on trading updates despite growth in users.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/EASCF_FR_2209.pdfAugust, 2022
The S&P/ASX Small Ordinaries Index (XSO) was up 0.58% during August. The Small Industrials decreased by 1.04%, while the Small Resources increased by 5.55%. The XSO finished the month on a 2yr forecast P/E ratio of 16.1x which is 5.5% below its 5-year average. This valuation is a 3.5% premium to the ASX200.
The best performing sectors in August were: Metals & Mining – Advanced Materials (28.1%), Mining Services & Engineering (13.8%), Metals & Mining – Steel (9.5%), and Energy (6.5%). The worst performing sectors during the month were Banks (- 18.4%), Telecommunications (-9.5%), Metals & Mining – Precious (-8.4%), and Real Estate Management & Development (-6.1%).
The best performing stocks within the XSO Index were Sayona Mining (SYA 51.3%), Nearmap (NEA 49.6%), Tyro Payments (TYR 47.7%), and Lake Resources (LKE 44.4%). Sayona's performance was driven by an update about its North American Lithium mine restart, Nearmap accepted a takeover offer from software investment firm Thoma Bravo, the market responded positively to Tyro's headcount management and improved FY23 guidance, and Lake Resources appears to have been buoyed by optimistic support for its Lithium project. The worst performing stocks in the XSO index were PPK Group (PPK -42.7%), Redbubble (RBL -39.8%), Appen (APX -35.7%), and Service Stream (SSM -30.5%). The market continued to sell off PPK to ~$1.5 from it's October 2021 high of ~$20, Redbubble reversed its July gains after providing increased cost guidance, Appen updated its pre-reported results with weakened guidance, and Service Stream disappointed the market with its FY22 results and lack of guidance.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/EASCF_FR_mnth_202208.pdfJuly, 2022
The S&P/ASX Small Ordinaries Index (XSO) was up 11.4% during July. The Small Industrials increased by 11.8%, while the Small Resources increased by 10.2%. The XSO finished the month on a 2yr forecast P/E ratio of 15.5x which is 8.7% below its 5-year average. This valuation is a 3.1% premium to the ASX200.
The best performing sectors in July were: Biotechnology (40.5%), Metals & Mining – Advanced Materials (20.6%), Retail (19.2%), and Automotive (18.1%). The worst performing sectors during the month were Agricultural Products (-7.7%), Metals & Mining – Steel (-7.5%), Wholesale, Distribution & Manufacturing (3.0%), and Infrastructure & Utilities (3.5%)
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/EASCF_FR_mnth_202207.pdfJune, 2022
The S&P/ASX Small Ordinaries Index (XSO) was down 20.4% during the June quarter. The Small Industrials decreased by 27%, while the Small Resources decreased by 16.8%. XSO finished the month on a 2yr forecast P/E ratio of 13.5x which is 20.8% below its 5-year average. This valuation is a 3.4% premium to the ASX200.
The best performing sectors were: Agricultural Products (+4.9%), Energy (-0.8%), Infrastructure & Utilities (-9.5%), and Healthcare (-9.6%). The worst performing sectors during the quarter were Metals & Mining – Advanced Materials (-46.9%), Industrial Technology (-34.8%), Metals & Mining - Precious (- 31.4%), Retail (-30.9%).
The best performing stocks within the XSO Index were Tassal (TGR +33.4%), Australian Agricultural Company (AAC +32.5%), Polynovo (PNV +23.7%), and Infomedia (IFM +23.3%). Tassal jumped on a takeover proposal which it later rejected. AAC showed continued growth given rising beef prices and increased overseas sales volumes. Polynovo recruited a new CEO which the market received well, and Infomedia received multiple takeover bids
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/EASCF_FR_202206.pdfMay, 2022
The S&P/ASX Small Ordinaries Accumulation Index returned - 7.01% for the month. The fund underperformed the market and delivered a -8.22% return over the month
The best performing sectors were: Energy (+3%), Metals & Mining - Steel, (-0.8%), IT Products & Services (-1.9%), and Mining Services & Engineering (-3%). The worst performing sectors during April were Industrial Technology (-17.3%), Building & Construction Products (-14.4%), Metals & Mining – Advanced Materials (-14.2%), and Real Estate Management & Development (-14.1%).
The best performing stocks within the XSO Index were Infomedia (IFM +35.7%), Polynovo (PNV +30%), Australian Agricultural (AAC +20.1%), and Brainchip (BRN +15.8%). Infomedia received competing takeover offers. Polynovo revealed significant insider share acquisitions. AAC reported strong results due to high cattle prices. Brainchip disclosed several commercial agreements including a partnership with ARM.
The worst performing stocks in the XSO index were Johns Lyng Group (JLG -32.9%), Sayona Mining (-31.2%), BWX (BWX - 26.6%), and PPK Group (PPK -25.5%). Johns Lyng Group fell on news of Director selling. Sayona declined on the back of weak lithium Industry share price performance due to broker downgrades. BWX provided guidance below consensus. PPK continues to fall on the back of significant restructuring.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/EASCF_FR_mnth_202205-1.pdfApril, 2022
The best performing sectors were: Metals & Mining - Steel, (+50%), Energy (+36.9%), Agricultural Products (+16%) and Metals & Mining – Advanced Materials (+9.4%). The worst performing sectors during April were Financial Services (- 21.3%), Aged Living (-22.1%), Retail (-26.1%), and Biotechnology (-39.4%).
The best performing stocks within the XSO Index were Sayona Mining (SYA, +33%), Select Harvests (SHV, +23%), Syrah Resources (SYR, +22%) and Graincorp (GNC-AU, +22%). Sayona and Syrah both benefitted from strong commodity prices. Sayona also published drilling update and a new Lithium discovery. Graincorp and Select Harvests both benefitted from strong soft commodity prices and favourable weather conditions.
The worst performing stocks in the XSO index were EML Payments (EML, -47%), Megaport (MP1, -38%), Life360 (360, - 32%) and Kogan (KGN, -31%). We believe that Life360 was principally impacted by the rotation away from high growth, high valuation equities. We believe the Life360 quarterly update revealed ongoing strong growth. Kogan announced weaker sales due to weakened consumer demand, whilst Megaport guided to slowed growth in the short term.
The price of hard and soft commodities and particularly energy, which had risen over the last 12 months, have now jumped significantly. Energy costs are likely to feed into widespread price rises if they persist at anything like spot levels. In addition, the ability of China to supply the world with a just-in-time supply on a huge range of consumer and intermediate goods had already been impacted by high shipping costs and now severe COVID lockdowns. These inflationary impacts seem unlikely to unwind quickly
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/EASCF_FR_mnth_202204.pdfMarch, 2022
The S&P/ASX Small Ordinaries Accumulation Index returned - 4.21% for the quarter. The fund underperformed the market and delivered a -10.21% return over the quarter.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/EASCF_FR_202203.pdfJanuary, 2022
The S&P/ASX Small Ordinaries Index (XSO) decreased by a 9.0% during January 2022. The Small Industrials decreased by 9.8%, while the Small Resources decreased by 5.9%. XSO finished the month on a 2yr forecast price to earnings (P/E) ratio of 17.8x which is 5% above its 5-year average. This valuation is a 7% premium to the ASX200.
The best performing sectors were: Metals & Mining - Steel, (+9.1%), Energy (+1.3%), Banks (-2.0%) and Mining Services & Engineering (-4.5%). The worst performing sectors during January were Biotechnology (-17.8%), Healthcare (-16.1%), Aged Living (-14.7%) and Industrial Technology (-14.6%).
The best performing stocks within the XSO Index were BrainChip (BRN, +110%), Champion Iron (CIA, +19%), Beach Energy (BPT, +17%) and Karoon Energy (KRN, +14%). In early January Mercedes-Benz announced that they were going to use BrainChip technology in a concept car. Beach and Karoon were both beneficiaries of higher oil prices. Champion Iron similarly benefitted from higher iron ore prices.
The worst performing stocks in the XSO index were Redbubble (RBL, -46%), Dubber (DUB, -35%) and Nuix (NXL, -33%). Redbubble had a profit downgrade in late December 2021. Dubber, we believe, was impacted by the general tech selloff in world markets. Nuix announce in mid-January that its expectations for 1H22 earnings were significantly below the prior period.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/EASCF_FR_mnth_202201.pdfDecember, 2021
The S&P/ASX Small Ordinaries Accumulation Index returned +2.03% for the quarter. The fund outperformed the market and delivered a +2.17% return over the quarter.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/EASCF_FR_202112-1.pdfNovember, 2021
The S&P/ASX Small Ordinaries Accumulation Index returned - 0.31% for the month. The fund outperformed the market and delivered a +1.52% return over the month.
The S&P/ASX Small Ordinaries Index (XSO) decreased by a 0.31% during November 2021. The Small Industrials decreased by 1.5%, while the Small Resources increased by a 3.6%. XSO finished the month on a 2yr forecast priec to earnings (P/E) ratio of 19.4x which is 17% above its 5-year average. This valuation is a 10% premium to the ASX200
The market and economic outlook are dominated by the rate of recovery from COVID-19 and its impact on inflation and interest rates. Hospitalisation rates from COVID in those countries with high vaccination rates appear to be within expected limits. However there are bigger than expected outbreaks in European Countries with vaccine rates around 65%. The debate around the trajectory of inflation post COVID has shifted from the near certainty that it was a temporary concern to the prospect that it will remain elevated for a longer period. The risk of stagflation has also risen. Central banks appear to be increasingly concerned about inflation rather than growth. We believe whatever the shape of the downturn and recovery that interest rates overall will remain lower than in prior cycles as debt will remain very high.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/EASCF_FR_mnth_202111.pdfOctober, 2021
The S&P/ASX Small Ordinaries Index (XSO) increased by 0.92% during October 2021. The Small Industrials decreased by 0.6%, while the Small Resources increased by a substantial 6.5%. XSO finished the month on a 2yr forecast price to earnings (P/E) ratio of 19.6x which is 17% above its 5-year average. This valuation is a 10% premium to the ASX200. The best performing sectors were: Metals & Mining - Precious, (+15.1%), Metals & Mining – Advanced Materials (+7.7%), Mining Services & Engineering (+6.9%) and IT Products & Services (+6.1%). The worst performing sectors during October were Financial Services (-5.2%), Agricultural Products (-4.7%), Biotechnology (-3.9%) and Consumer Discretionary & Leisure (-3.8%).
The best performing stocks within the XSO Index were West African Resources (WAF, +34%), Liontown Resources (LTR, +32%), Nick Scali (NCK, +30%) and Paladin Energy (PDN, +28%). West African Resources announced exploration success and benefitted from the stronger gold price. Liontown completed a demerger and has been included in the ASX 300. Nick Scali announced the acquisition of Plush furniture. Paladin Energy benefitted from renewed interest in nuclear energy and uranium
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/EASCF_FR_mnth_202110-1.pdfSeptember, 2021
The S&P/ASX Small Ordinaries Accumulation Index returned +3.44% for the quarter. The fund outperformed the market and delivered a +11.38% return over the quarter.
The best performing sectors were: Energy (+29.9%), Aged Living (+19.2%), Metals & Mining – Advanced Materials (+17.8%), and Real Estate Management (+15.4%). The worst performing sectors during the September quarter were Metals & Mining - Steel (-14.1%), Metals & Mining - Precious (-11.9%), Metals & Mining – Base (-7.4%) and Healthcare (-4.0%).
The best performing stocks within the XSO Index were ioneer (INR, +80%), Whitehaven Coal (WHC, +67%), Coronado Resources (CRN, +54%) and Flight Centre (FLT, +45%). ioneer established a joint venture and funding to develop its lithium/boron project in Nevada. Whitehaven and Coronado are both responding to the significant jump in coal prices. Flight Centre bounced on news that global travel volume continues to increase rapidly.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/EASCF_FR_202109.pdfAugust, 2021
The S&P/ASX Small Ordinaries Accumulation Index returned +4.98% for the month. The fund outperformed the market and delivered a +6.79% return over the month.
The S&P/ASX Small Ordinaries Index (XSO) increased by a 4.98% during August 2021. The Small Industrials increased by 6.10%, while the Small Resources increased by 0.69%. XSO finished the month on a 2yr forecast price to earnings ratio of 19.8x which is 19% above its 5-year average. This valuation is a 11% premium to the ASX200.
The best performing sectors were: Metals & Mining - Other, (+12.1%), Consumer Discretionary & Leisure (+11.5%), Aged Living (+11.4%) and Banks (+10.8%). The worst performing sectors during August were Metals & Mining - Steel (-13.5%), Metals & Mining - Precious (-4.7%), Metals & Mining – Base Metals (-2.8%) and Engineering & Mining Services (-1.7%). The best performing stocks within the XSO Index were Blackmores (BKL, +37%), Clinuvel (CUV, +36%), ioneer (INR, +34%) and Redbubble (RBL, +34%). Blackmores' FY21 result and more importantly cost out and medium-term strategy announcements were well received by the market. Clinuvel delivered a record FY21 result. Redbubble delivered a result that appeared to stabilise the earnings fall suffered as mask sales have declined.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/EASCF_FR_mnth_202108.pdfJuly, 2021
The S&P/ASX Small Ordinaries Index (XSO) increased by a 0.67% during July 2021. The Small Industrials decreased by 0.93%, while the Small Resources increased by a significant 7.39%. XSO finished the month on a 2yr forecast price to earnings (P/E) ratio of 19.1x which is 15% above its 5-year average.
This valuation is a 10% premium to the ASX200. The best performing sectors were: Engineering & Mining Services, (+11.6%), Metals & Energy (+9.4%), Precious Metals (+4.2%) and Infrastructure, Utilities & Property (+1.0%). The worst performing sectors during July were Internet Services & Media (-4.1%), Healthcare (-3.2%), Other Industrials (-2.9%) and Financial Services (-1.9%)
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/EASCF_FR_mnth_202107.pdfMay, 2021
The S&P/ASX Small Ordinaries Index (XSO) increased by a 0.27% during May 2021. The Small Industrials decreased by 0.63%, while the Small Resources increased by a significant 4.15%. XSO finished the month on a forecast FY22 price to earnings ratio of 18.5x which is 13% above its 5-year average. This valuation is a 1% premium to the ASX200.
The best performing sectors were: Banks, (+13.1%), Metals & Mining - Precious (+10.2%), Energy (+10.1%), Metals & Mining - Base (+8.2%) and Aged Living (+4.8%). The worst performing sectors during May were Agriculture (-10.8%), Engineering & Mining Services (-9.3%), Chemicals (-7.3%) and Healthcare (- 3.7%).
The best performing stocks within the XSO Index were Chalice Mining (CHN, +27%), Alkane Resources (ALK, +27%), Resolute Mining (RSG, +26%) and New Hope Corp (NHC, +25%). Chalice and Alkane both had strong exploration drilling results. Resolute (gold) and New Hope (thermal coal) both responded to stronger commodity prices.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/EASCF_FR_mnth_202105.pdfApril, 2021
The S&P/ASX Small Ordinaries Accumulation Index returned +4.98% for the month. The fund underperformed the market and delivered a +3.97% return over the month.
The S&P/ASX Small Ordinaries Index (XSO) increased by a 4.98% during April 2021. The Small Industrials increased by 3.91%, while the Small Resources increased by a significant 9.5%. XSO finished the month on a forecast FY22 price to earnings ratio of 18.6x which is 14% above its 5-year average. This valuation is a 2% premium to the ASX200.
The best performing sectors were: Metals & Mining – Base, (+14.8%), Metals & Mining - Precious (+13.2%), Metals & Mining - Steel (+12.2%), Real Estate Management (+10.1%) and Metals & Mining - Other (9.9%). The worst performing sectors during April were Energy (-9.8%), Biotech (-6.7%), Chemicals (-1.5%) and Consumer Discretionary (-0.6%).
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/EASCF_FR_mnth_202104.pdfNovember, 2020
The S&P/ASX Small Ordinaries Accumulation Index returned +10.27% for the month. The fund underperformed the market and delivered a +6.17% return over the month.
Contributors:
AP Eagers Limited (APE) Update on used car strategy and positive new car sales data for October. Lynas Rare Earths Ltd (LYC) China announced review of export controls and strong global EV (electric vehicle) sales. Pilbara Minerals Ltd (PLS) Strong global EV sales and bid for Altura Mining (in receivership).
Detractors:
Adairs Ltd (ADH) Rotation out of e-commerce stocks. Marley Spoon AG (MMM) Impact of surprise capital raising and rotation out of ecommerce stocks. NEXTDC Ltd (NXT) Strong in prior month. No specific news
ticker: HOW2967AU
release_schedule: Monthly
commentary_block: Array
factsheet_url:
https://www.eigercapital.com/funds-performance/reports/reports-2022/
Note:
PDF : “Market overview”
asset_class: Domestic Equity
asset_category: Australian Micro Cap
peer_benchmark: Domestic Equity - Micro Cap Index
broad_market_index: ASX Index Small Ordinaries Index
structure: Managed Fund
manager_contact_details: Array
fund_features:
Eiger Australian Small Companies Fund (The Fund) provides exposure to a select, actively managed portfolio of stocks with a small-medium level of capitalization listed, or expected to be listed, on the Australian Securities Exchange (ASX) and the New Zealand Securities Exchange (NZX). The Fund aims to outperform its benchmark over rolling five year periods (after fees.
- The Fund provides access to a portfolio of small to medium sized companies diversified across all sectors in Australia and New Zealand.
- Experienced investment professionals: access to a specialist investment team with over 60 years’ combined experience investing in small to medium companies.