2 top ASX shares to buy according to WAM

Mincor Resources is one of the ASX shares WAM likes right now.
The post 2 top ASX shares to buy according to WAM appeared first on The Motley Fool Australia. –

Key points

WAM has revealed two ASX shares that are liked in the WAM Active portfolio
TPG Telecom is one buy-rated stock, with merger synergies and a potential asset sale as positives
Mincor Resources is a nickel player which is making promising progress in WA

Respected fund manager Wilson Asset Management (WAM) has recently identified two ASX shares that it owns in one of its portfolio.

WAM operates several listed investment companies (LICs). Two of those LICs are WAM Capital Limited (ASX: WAM) and WAM Leaders Ltd (ASX: WLE).

There’s also one called WAM Active Limited (ASX: WAA) which looks at businesses it thinks are the most undervalued.

WAM says WAM Active invests in market mispricing opportunities in the Australian market.

The WAM Active portfolio has delivered gross returns (that’s before fees, expenses and taxes) of 11.8% per annum since inception in January 2008, which is superior to the Bloomberg AusBond Bank Bill Index return per annum of 2.9%.

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

TPG Telecom Ltd (ASX: TPG)

TPG is a business that owns and operates mobile and fixed networks. It is the owner of a few of Australia’s most well-known brands including Vodafone, TPG and iiNet.

The fund manager pointed out that in early December, founder David Teoh entered into an agreement to sell around 53.1 million TPG Telecom shares, which led to a sell-off of the TPG share price.

WAM also noted that the spread of the Omicron COVID variant also weighed on the company during the month as it reduced the number of international visitors, leading to a reduction in its consumer subscriber numbers.

WAM Active remains invested in TPG and the fund manager remains optimistic on the company’s fixed wireless rollout strategy which should help increase profit margins.

The fund manager thinks the base business of the ASX share is undervalued considering its growth profile over the next few years, it likes the risk-reward profile. WAM is particularly attracted by the potential sale of the mobile tower business which could take place over the coming months.

Mincor Resources NL (ASX: MCR)

The other ASX share outlined was Mincor Resources. This business is focused on re-establishing sustainable, high-grade nickel production in the Kambalda district of Western Australia.

WAM points out that in December, the business provided an exploration update which said that nickel had been extracted from two development headings at Kambalda. The fund manager said this was a key achievement in the company’s nickel restart plans and supported the investment thesis.

The bull case for the company by WAM is that there is potentially significant undiscovered nickel sulphide at the company’s Kambalda site.

WAM invested in Mincor Resources because of its high-quality management team, the projects which are key to the BHP Group Ltd (ASX: BHP) nickel strategy and the potential for nickel sulphide discoveries.

WAM Active continues to own Mincor Resources shares because the fund manager believes it will continue to grow its resources as it nears production in 2022.

The post 2 top ASX shares to buy according to WAM appeared first on The Motley Fool Australia.

Wondering where you should 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 over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

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

*Returns as of January 12th 2022

More reading

Brokers name 3 ASX shares to buy today

This top broker just rated the TPG (ASX:TPG) share price as a buy

2 beaten-up blue chip ASX shares rated as buys

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended TPG Telecom Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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.

  • This field is for validation purposes and should be left unchanged.

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 - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US & HK* Trades. Click Here!