Hi Asteroider, no pumpy dumpy - Thorney actually taking the long view on this one. See following AFR coverage of Thorney's recent meeting from few weeks ago. These guys have a good track record for savy investments. Welcome addition to the register.
·Updated Nov 24 2017 at 2:04 PM
After a big year Alex Waislitz's next tip is to get into mining services stocks
Thorney Opportunities chairman Alex Waislitz addressed the firm's AGM on Friday. Jesse Marlow
Billionaire investor Alex Waislitz has picked some of the best technology stocks on the ASX this year, and now has his sights set on the mining services sector.
Appearing relaxed and telling jokes at the annual meeting of both his listed investment companies, Thorney Opportunities and Thorney Technologies, in Melbourne on Friday, Mr Waislitz revelled in his stock-picking success.
"I'm happy we are making people money," he told AFR Weekend. "I've had people come up to me and say thanks to you we've gone on a holiday, or we've bought an extra car or been able to support the kids. I must say I've enjoyed that and hopefully that will continue."
Thorney Opportunities listed in 2014 and after a slow start has gained momentum, with net tangible asset (NTA) backing rising 18 per cent in the 2017 financial year to 71.6¢ per share. At the end of October it was up to 75.3¢. Thorney Technologies' NTA is 21.5¢ per share, up more than 20 per cent since January 1.
Much of that success was down to picking stocks such as delivery management software GetSwift, up 593 per cent since the beginning of year, data storage company NextDC, which hit a record high on Friday and is up 58 per cent in the same time, and Afterpay Touch, a payment services firm Waislitz rates highly. "They have a particularly formidable management team [headed by Young Rich List member Nicholas Molnar], are innovative, fast-moving and decisive."
Then there is Updater, which Thorney invested in before its December 2015 float. The company's shares are up ten-fold since as its services for helping people move house in the United States gains rapid popularity. "Updater is one of the more exciting companies on the ASX," Mr Waislitz said.
Thorney's activist style of investing has also found success at investment and superannuation platform HUB24, which is up 81 per cent this year.
Digging for opportunities
"We helped that company take shape and change the leadership," said Mr Waislitz.
"When we got involved they had $50 million on the platform. Now they're getting $200 million inflows each month and they're up to $6.5 billion and are disrupting the bigger players in the sector. They are well positioned to be a nimble technology player with a good platform."
Now Mr Waislitz is keen on mining services. "The sector has been capital-starved for five years, maybe seven years. What has happened is the wear and tear on equipment has been dramatic," he said.
"The big miners and some of the smaller ones are still producing very big tonnage, so you can only patch up these things for so long. So you have to re-invest in the equipment and that is exactly what is happening, and there is new projects coming on as well. The combination of new capital and spending on new equipment means the sector looks good to us."
Mr Waislitz identified Austin Engineering, which he said Thorney had "helped fix their leadership and their balance sheet" as one he was particularly excited about, along with Southern Cross Electrical Engineering and MMA Offshore.
"We have long had a relationship with these companies, but in time we have sold down significantly but kept our knowledge and intellectual capital in them. So now we have thought it was an opportune time to purchase more shares in these companies."
He said Southern Cross has been winning work with new projects and had entered the fast-growing infrastructure sector while MMA was a longer-term play.
"It is in the oil industry, which we think will lag others for the next two years. So we are trying to position ourselves earlier as an appropriate entry level."
