A message from our CIO, Scott Phillips:
“G’day Fools. If you’re like us, you’re dismayed by the events taking place in Ukraine. It is an unnecessary humanitarian tragedy. Times like these remind us that money is important, but other things are far more valuable. And yet the financial markets remain open, shares are trading, and our readers and members are looking to us for guidance. So we’ll do our best to continue to serve you, while also hoping for a swift and peaceful end to war in Ukraine.”
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COVID-19, inflation, rising interest rates, plummeting indices, and now war in Europe.
2022 is off to an awful start not just for ASX shares, but for humanity generally.
It can be hard to summon optimism in times like this.
If you’re looking for stocks to buy at the moment, many businesses will decline to give a forecast or will reserve their judgement about how the world pans out.
But according to Prime Value portfolio manager Shih Thin Wong, there are some companies out there that will keep doing their thing — regardless of what’s happening outside its walls.
“I can’t predict when the Ukraine-Russian crisis will end — whether it has a fat tail or a number of scenarios,” he told Switzer TV Investing.
“I want to be comfortable owning companies which I think will give me earnings profile growth regardless of the macro environment.”
Bus contracts that get paid regardless of patronage
One Australian business that fits the bill, according to Wong, is Kelsian Group Ltd (ASX: KLS).
What he particularly likes about the company formerly named Sealink is its resilient contracts with local government clients.
“Those services are not dependent on passengers,” Wong said.
“Whether you’ve got one passenger or 30 passengers alighting onto the bus, Kelsian still gets paid — because they’re paid to provide essential services to the community.”
They’re also the types of contracts that will endure different parts of the economic cycle.
The other attraction for potential buyers of Kelsian shares is that Wong reckons it has been oversold in this year’s correction.
The stock has fallen more than 4% so far in 2022, but the loss is close to 30% from its August peak.
“We look at the share price, it’s probably been sold down for the last 6 months,” he said.
“But fundamentally, as a bus business, it’s really solid.”
Kelsian shares closed Friday at $7.12.
Despite the heavy losses in the second half, the stock still rated among the top 5 best ASX 200 travel shares of 2021.
The post The ASX share that’s not worried about what’s happening in the world appeared first on The Motley Fool Australia.
Should you invest $1,000 in Kelsian Group right now?
Before you consider Kelsian Group , you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Kelsian Group wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of January 13th 2022
More reading
- These were the worst performing ASX 200 shares last week
- Own Rio Tinto (ASX:RIO) shares? Here’s why the miner is ‘closely monitoring’ the Ukraine situation’
- 3 promising small cap ASX shares to watch
- Here are the top 10 ASX shares today
- Why is the iron ore price hitting 6-month highs?
Motley Fool contributor Tony Yoo 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 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.
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