Today I conducted an analysis of this small ASX company which can be viewed by subscribers by following the link:
Big River Industries ASX:BRI June 13, 2024
The reason why is because I was reading the most recent “Shareholder Update” from NAOS Asset management. NAOS manage three LICS on the ASX.
When I’ve looked at these LICs in the past, this company has been a core holding in at least two, if not all of them. I’ve always wondered why because at face value this never appeared to me to be a company to be excited about. View the analysis above to draw your own conclusions.
This is what the NAOS had to say about ASX:BRI:
The shareholder update was looking at the performance of 3 core holdings in their portfolios, one of which was ASX:BRI.
Needless to say, I won’t be in any hurry to analyse the other two companies.
NAOS shares these observations collected from various companies the follow:
I guess all of that is consistent with this:
This is all good and important information.
All in all though, NAOS has always puzzled me. Their three LICs all struggle and never trade near their NTA values. Their investment approach seems to be top-down which means they form a thesis about a marco theme and then buy stocks they believe will benefit from that theme. They play the long game which can always gain you a lot of leeway. If you invest for the long-term and your investments fall you can easily just say they need more time.
In the case of ASX:BRI, I get it. Australia needs more housing as well as other infrastructure. This company should benefit. My question is a simple one – is this the best company to play the theme? There are dozens of stocks our the ASX that will benefit from a housing and infrastructure boom. Many are already doing so. Investors in ASX:BRI will have to wait a bit longer to see if they can join the party.
Disclaimer: This information is provided purely for educational purposes. It takes no account of an individual’s personal financial circumstances and hence can in no way constitute financial advice. The above data may be subject to errors or inconsistencies for which the author takes no liability. It is imperative that all investors do their own research or if they need advice, seek it from a qualified financial adviser.
Big River Industries – Why?