Fundie names 5 ASX shares with good growth prospects
Tristan Harrison | January 3, 2021 10:47am |
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Clime Capital Ltd (ASX: CAM) is a listed investment company (LIC) that runs a portfolio that targets both large ASX shares and small ASX shares.
Some of the largest positions in Clime’s portfolio at the end of November 2020 were:
APN Property Group Ltd. (ASX: APD),
City Chic Collective Ltd(ASX: CCX),
Macquarie Telecom Group Ltd.(ASX: MAQ) and
Clime explained what happened with its portfolio about some of its November movements, and the current thinking behind each idea:
The fund manager said that the approximately 25% return of NAB shares in November reflected both the earnings result and positive developments on the economic front.
3 small cap ASX shares to buy for 2021
Tristan Harrison | December 31, 2020 4:19pm |
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There are some small cap ASX shares that may be able to generate good returns in 2021.
Identifying a business that’s earlier on in its growth journey may mean it’s possible to capture more capital growth.
Here are three smaller businesses with growth potential:
City Chic is a retail ASX share that sells plus-size clothing, footwear and accessories to women.
It adapted to COVID-19 conditions by ramping up its online sales, which grew 113.5% in FY20 and represented 65% of total sales. Fund manager Chris Prunty from QVG Capital thinks that the e-commerce theme will continue to grow after COVID-19 has passed. For a business like City Chic, the small cap ASX share’s ability to sell products online underlines its ability to build a market-leading position for itself.
Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.
Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:
According to a note out of
Citi, its analysts have retained their
buy rating and lifted the price target on this fashion retailer’s shares to $4.00. This follows the announcement of the acquisition of UK-based plus-sized women’s fashion retailer Evans this week. The broker is expecting the acquisition to be meaningfully accretive to earnings from next year and suspects it could help drive margin expansion. The City Chic share price is changing hands for $3.79 this afternoon.
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Pic: Evans City Chic Collective Ltd recently announced acquiring the Evans brand and its e-commerce and wholesale businesses for £23.1 million in cash. Evans is a UK retailer of women’s plus-size clothing. The Evans assets will be acquired from Evans Retail Limited and certain other entities within the Arcadia group, which entered into administration on November 30. The acquisition will be completed on December 23 this year, subject only to payment of the cash consideration. Phil Ryan, chief executive officer and managing director of City Chic said: “I have followed Evans for over a decade and seen how within Arcadia’s portfolio the brand has evolved from a dominant high street retailer into a more digitally focused business. We had a successful partnership with Evans for many years which was a great channel for the City Chic brand in the UK. Evans gives us an excellent foundation in a new geograp
The City Chic (ASX:CCX) share price has been tipped to jump 21% higher from here
James Mickleboro | December 22, 2020 7:34am |
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The fashion retailer’s shares surged 11% higher to $3.52.
Why did the City Chic share price surge higher?
Investors were buying the company’s shares after it announced a binding asset purchase agreement to acquire UK-based women’s plus-size clothing retailer Evans for 23.1 million pounds (A$41 million).
Evans is a UK-based retailer of women’s plus-size clothing with a longstanding customer base and strong market position. The Evans assets will be acquired from the Arcadia group, which entered into administration on 30 November.