The market remained heavily focused on inflation and the Fed in April. A lot of small caps continue to trade at crazily cheap valuations for what you are getting. We continue to pick up stocks for our venture list while they are trading at silly prices.
Natural resources remains a sector we like the look of, but here we're being picky. More widely, we are feeling more optimistic about opportunities in Asia, but not necessarily China. Armchair Trader Plus+ subscribers will note we are already up +6.7% on the Tsukada Group recovery story, for example. Healthcare is also emerging as an area of interest, especially in the European market.
Some other shout outs in the existing portfolio worth mentioning: Swiss construction firm Implenia [SWX:IMPN] now up a punchy 49% since we got in. At one level it sounded like a very boring business but we bought on the back of some excellent fundamentals and what we thought was a valuation that did not support the quality of that business. Similar principles informed our buy into Warpaint London [LON:W7L] which we thought would compete well against more established cosmetic brands in the current environment. The stock is up 29.1% since we got it.
Into our venture portfolio last month comes Sage Potash [TSXV:SAGE], a Canadian-listed potash explorer with some very interesting and frankly massive scale prospects in Nevada. This fits in well with the strategic story of US consumers looking to source more raw materials in North America. Potash is essential for agriculture, and in this case the Sage Potash site is extremely well-located to the sprawling US corn belt. We consider this to be a very valuable asset and that value is not being priced in yet.
Our screens continue to throw up very high quality European medical sector stocks and we could not resist Biocorp [Euronext:ALCOR], which we bought last month at EUR 24.1. We think this one still has plenty of upside and at time of writing it is trading marginally higher from when we entered. Biocorp develops devices that can help doctors to monitor patients remotely. Sales were up 14% in its March set of results and it is hinting at further distribution partnerships. It has already expanded its existing collaboration with Germany's Merck. We smell further big deals to come in 2023.
Gaming Realms [LON:GMR] was a slam dunk for me, not just because it again sports some excellent financials, but because it provides exposure to the fast growing online gambling business. Having worked as a financial journalist through a number of recessions now, I've noticed the interesting phenomenon of the gaming/gambling sector continuing to print money while many others struggle. CEO Mark Segal kindly joined us on the podcast this month and we will be aiming to get more CEOs from our stocks picks to join us when we start our next series of podcasts in September. We are now up +22.8% since we bought Gaming Realms in January.
Sold in April: Cleantech Lithium, Gabelli Merger Plus, Network Media Group
So how are our picks getting on?
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