TOL - 30th Jan, 2025
2 ideas in 200 words #2
2 compelling investment ideas to take away and research
The Australian market is ripe with opportunities for the astute investor. While many chase high-flying, headline-grabbing stocks, often the real value lies in the overlooked and undervalued.
Today, we turn our attention to two such companies, both leaders in their respective fields, yet trading at levels that seem to defy logic. Below is a brief summary of two compelling ideas to take away and research.
Air New Zealand Ltd (ASX: AIZ)
AIZ is the ‘other’ airline that seems to get forgotten on the ASX. Whereas QAN’s share price is trading at record highs, AIZ’s share price is close to all-time lows. Pre-Covid, AIZ was trading around the $2 mark, but has since plummeted to around 55c. But like QAN, AIZ has a controlling position in its home market.
Additionally, after three tough years, management are notably more positive on the outlook, with clear signs of improvement across most metrics. AIZ have a much younger fleet, equally strong safety rating and (from personal experience) excellent customer service.
Buy
ASX: IPH Ltd (IPH)
IPH is the largest patent attorney in Australia, Canada, Singapore and some smaller markets. It has an extraordinarily sticky long-term clientele that often aligns with the duration of patents. IPH has been a steady long-term compounder, growing EPS from 19.6cps in FY15 to 46cps in FY24.
Despite these strong attributes, IPH is trading at multi-year lows on a consensus forecast PER of 10.7x and a dividend yield of 6.9%. The average of broker price targets is currently 45% higher at $7.21 per share.
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Katana Asset Management was founded in September 2003 as a boutique investment management firm. Katana employs an all opportunity investment mandate being style, sector and market cap agnostic.
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The information contained in this article is provided to each recipient on the following basis:
this article has been produced by Katana Asset Management (KAM). This article does not purport to contain any information that the recipient may require to evaluate KAM’s performance
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none of KAM, Katana Capital Ltd, their respective directors, officers, employees advisers or representatives (collectively the representatives of the company/license) make any representation or warranty, express or implied, as to the accuracy, reliability or completeness of the information contained in this article and nothing contained in this article is, or shall be relied upon as a promise of representation, whether as to the past or the future.
except insofar as liability under any law cannot be excluded, the Beneficiaries shall have no liability arising in respect of the information contained in or not contained in this article.
statements in this article are made as of the date of this article unless otherwise stated.
this is a general article only and it is not a recommendation and there is no consideration of the personal circumstances of any person;under no circumstances should this be taken as financial advice.
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3 stocks mentioned
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Katana Asset Management was founded in September 2003 as a boutique investment management firm. Katana employs an all opportunity investment mandate being style, sector and market cap agnostic.
Expertise
Katana Asset Management was founded in September 2003 as a boutique investment management firm. Katana employs an all opportunity investment mandate being style, sector and market cap agnostic.
Expertise
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