TOL - 4th Mar, 2025
2 ideas in 200 words #3
2 stocks Katana has been adding to this week
Reporting season can often be an interesting time for investors, with share prices fluctuating based on expected - or unexpected - results. It can be an excellent time to add to a portfolio, or take gains.
In this wire, I'll outline two stocks we've been adding to in the last week. One stock had declining EPS but is projected to have stronger growth ahead, while the second not only had a strong annual report this season, but is expected to see the full impact of cost savings in the coming year.
Dicker Data Limited (ASX: DDR)
DDR’s price swung wildly post their full-year results, with the market focussed on competing themes. Looking in the rearview mirror, EPS declined by 4.40%, despite a small increase in revenue (+2.9% to $3.4bn). However 2024 was always flagged as a flat year, and the company has guided to strong growth ahead. In the results presentation, the CEO highlighted that DDR “expect to do substantially better this year”. The COO further commented that “indications for Jan/Feb are incredibly positive”. DDR has been a genuine growth compounder for more than a decade.
Praemium Limited (ASX: PPS)
PPS reported a strong set of numbers for the first half of 2025, with underlying EBITDA up 43% and NPAT up 46% versus the 1st half of 2024. The increase was aided by the recent acquisition of the OneVue platform. However, the largest cost savings from this purchase are still ahead, once the legacy platform is switched off. PPS also pushed through their first price increases in nearly a decade, effective 1 Jan 2025. Combined with the ongoing increase in funds under administration, we are likely to see operating leverage accelerate in the coming periods.
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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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2 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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