Insights

2 top ASX shares that WAM thinks are buys

The investment team at Wilson Asset Management thinks these 2 ASX shares look good, including Dusk Group Ltd (ASX:DSK).
The post 2 top ASX shares that WAM thinks are buys appeared first on The Motley Fool Australia. –

A share market investment manager monitors share price movements on his mobile phone and laptop

Respected fund manager Wilson Asset Management (WAM) has recently identified two ASX shares that it thinks are buys.

WAM operates several listed investment companies (LICs). Some focus on larger companies like WAM Leaders Ltd (ASX: WLE), whilst others go for smaller companies like WAM Research Limited (ASX: WAX) and WAM Microcap Limited (ASX: WMI).

WAM Microcap targets small cap ASX shares with a market capitalisation under $300 million at the time of acquisition.

WAM says WAM Microcap targets the most exciting undervalued growth opportunities in the Australian microcap market.

The WAM Microcap portfolio has delivered gross returns (that’s before fees, expenses and taxes) of 25% per annum since inception in June 2017, which is superior to the S&P/ASX Small Ordinaries Accumulation Index average return of 11.6%.

These are two ASX shares that WAM outlined in its most recent monthly updates:

Dusk Group Ltd (ASX: DSK)

This is a pick by WAM Microcap.

Dusk is the leading Australian omni-channel specialty retailer that is focused on home fragrance products.

The ASX share recently gave a trading update for the third quarter of FY21 with sales of $27.7 million, up from $18.4 million in the prior year. Financial year to date sales were $118.7 million, up from $77 million in the prior corresponding period.

Wilson Asset Management also pointed out that full year sales guidance is for a range of between $147 million to $151 million. It’s delivering a lot of growth.

Dusk had a strong inventory position for Mother’s Day in May according to WAM. New stores will further add to growth, it has added 10 new stores over the last year.

The fund manager is positive on Dusk because the disciplined cost management provides the business with operating leverage as it rolls out new stores across the country.

Imdex Limited (ASX: IMD)

This is a pick by WAM Research.

What’s Imdex? The LIC explains that it’s a global provider of end to end technology solutions for mining exploration and development, developing drilling optimisation products and sensors to provide real-time data.

Imdex is truly a global business with operations in the mining regions in Asia Pacific, Europe, Africa and the Americas. It has a presence on 70% of minerals drilling projects globally and sales in more than 100 countries.

The ASX share has benefited from strong copper prices, which reached almost US$10,000 per tonne in April, which is the highest in 10 years.

WAM Research explained where it’s seeing opportunities. Clean energy and the battery mineral space continue to see significant investments. This help gives copper, nickel and lithium a strong outlook because of all of the demand.

Wilson Asset Management also thinks that the company will benefit from higher global exploration budgets after years of under-investment.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 2 top ASX shares that WAM thinks are buys appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!