If all the turbulence in share markets is confusing, it’s worth looking at what the professionals have been buying for their own funds.

Listed investment company QV Equities Ltd (ASX: QVE) on Thursday held an update for investors in Sydney. 

The portfolio managers from IML, which operates the fund, revealed four ASX shares they’ve recently added.

“They’re very good examples of the types of companies we like to own at IML,” said portfolio manager Marc Whittaker.

“Companies with recurring earnings, with good sustainable competitive advantages, with good management teams, and companies that can grow.”

They come from a diverse range of sectors:

• Codan Limited (ASX: CDA)
• Brambles Limited (ASX: BXB)
• TPG Telecom Ltd (ASX: TPG)
• GUD Holdings Limited (ASX: GUD)

Tailwinds that have nothing to do with rising interest rates

Each of these ASX shares have specific internal tailwinds that are independent of external economic factors.

Among other products, Codan produces metal detecting equipment, which is considered of higher quality than its rivals.

The company enjoyed a global boom in sales during the COVID-19 lockdowns as amateurs took to looking for treasures as a new hobby.

But the share price has been caught up in the technology sell-off, losing more than 19% of its value so far this year.

Whittaker said that this just presented an excellent buying opportunity for a “strong cash-generating” business.

“What we think is a global leader in mine detection and what we think is a strong growth opportunity in communications, you’re getting all that for 13 times PE, which we think is a very compelling valuation — and a dividend yield of close to 4%.”

‘Beautiful business’

Brambles produces pallets for commercial shipping, which are returned and reused.

“‘Pallet pooling’ is a beautiful business because it does come with very powerful network effects,” said Whittaker.

“On the back of that, network effects produce very strong cash generation.”

Acquisition interest from private equity earlier this month, although it fell through, indicates how tempting the current stock price is, he added.

“We’re not sure that bid’s totally gone away… But what that bid points to is the attractiveness of this business model.”

Meanwhile, TPG has a whole series of internal actions it can take to increase the value of the business.

And the industry is at a point in its cycle where all the players are increasing prices.

“If you think about telecommunications businesses, a lot of their cost base is fixed,” said Whittaker.

“So if you can grow your revenues at CPI or greater, then all of a sudden you start to see earnings growth as well.”

Automotive parts and accessories maker GUD made a pair of acquisitions in recent times that the QVE team feels is a catalyst for a bright future.

“GUD is a great example of a company which I think is high quality, but where the quality of that company is improving as well,” said Whittaker.

“It’s gone away from just being an internal combustion engine-exposed auto parts supplier to a company which is really agnostic to whether you’re driving an EV or driving a diesel or driving a petrol car.”

The post 4 great value ASX shares we just bought: expert appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX 200 shares last week
• Fundie tips ASX 200 dividend shares that pay ‘in good times and bad’. Hint: not miners
• Why BrainChip, Codan, Elders, and Karoon Energy are storming higher
• ASX 200 midday update: Elders and Codan rocket, Incitec Pivot disappoints
• Codan share price jumps 10% amid guidance for ‘record’ FY22 profit

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 recommended TPG Telecom Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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A strong finish to the week led to the S&P/ASX 200 Index (ASX: XJO) recording its second successive weekly gain. The benchmark index rose 0.5% to end the period at 7,182.7 points.

While a good number of shares rose with the market, some climbed more than most. Here’s why these were the best performers on the ASX 200 last week:

Codan Limited (ASX: CDA)

The Codan share price was the best performer on the ASX 200 last week with a 16.6% gain. Investors were scrambling to buy this technology company’s shares following the release of its guidance for FY 2022. Codan revealed that it expects to match its record first-half profit in the second half, which would mean a record full-year profit of $100 million. This will be a 56% increase year on year.

Pointsbet Holdings Ltd (ASX: PBH)

The PointsBet share price wasn’t far behind with a 12.8% gain. This was despite the tech sector sinking last week. All the sports betting company’s gain came on Friday despite there being no news out of it. Though, some investors may believe it would be an attractive takeover target amid increased M&A activity in the tech sector.

Allkem Ltd (ASX: AKE)

The Allkem share price was on form and charged 7.4% higher over the five days. A number of lithium shares charged higher last week. This was possibly due to strong pricing from a rival’s latest lithium auction. In addition, there is optimism that lithium demand will continue to outstrip supply for some time to come. This could lead to lithium prices remaining higher for longer.

Virgin Money UK (ASX: VUK)

The Virgin Money UK share price was a positive performer and rose 6.7% during the week. This follows an equally strong gain by the UK-based bank’s London-listed shares. While there was no news out of Virgin Money UK, a strong from JP Morgan on Wall Street may have boosted investor sentiment.

The post These were the best performing ASX 200 shares last week appeared first on The Motley Fool Australia.

More reading

• These were the worst performing ASX 200 shares last week
• Here are the top 10 ASX shares today
• Here are the 3 most traded ASX 200 shares on Friday
• Why Infomedia, Pilbara Minerals, PointsBet, and Talga shares are racing higher
• ASX 200 midday update: Appen crashes, lithum shares jump

Motley Fool contributor James Mickleboro has positions in Allkem Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) was on form last week and recorded its second successive weekly gain. The benchmark index added 0.5% to end the period at 7,182.7 points.

Unfortunately, not all shares climbed with the market. Here’s why these were the worst performers on the ASX 200 last week:

Tabcorp Holdings Limited (ASX: TAH)

The Tabcorp share price was far and away the worst performer on the ASX 200 last week with a massive 81% decline. However, this wasn’t driven by bad news. The catalyst was the demerger of its lottery and Keno businesses into a separate listed entity – The Lottery Corporation Limited (ASX: TLC). This leaves Tabcorp with its wagering, media, and gaming services businesses.

Novonix Ltd (ASX: NVX)

The Novonix share price was out of form and tumbled 9.3% over the period. This was despite there being no real news out of the battery materials and technology company last week. This latest decline means that the company’s shares are now down a whopping 65% since the start of the year.

InvoCare Limited (ASX: IVC)

The InvoCare share price wasn’t far behind with a 9.1% decline over the five days. This appears to have been driven by a lukewarm response to the funerals company’s recent annual general meeting update. One of those brokers was UBS, which retained its neutral rating but cut its price target to $12.40. It fears that rising labour costs will offset improving trading conditions.

Block Inc (ASX: SQ2)

The Block share price was out of form again and sank 8.3% last week. This was despite the payments company’s shares rebounding strongly on Friday. Block’s shares came under pressure amid continued weakness in the tech sector. This saw the S&P ASX All Technology index lose 2.5% of its value last week.

The post These were the worst performing ASX 200 shares last week appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Here are the 3 most traded ASX 200 shares on Friday
• ASX 200 midday update: Appen crashes, lithum shares jump
• Novonix share price surges higher despite billionaire’s board exit
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Inc. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Insurance Australia Group Ltd (ASX: IAG) share price has not proven to be a defensive buy at any time in recent history. This is an ASX 200 share that remains down by 7.77% over the past 12 months, and down almost 32% over the past five years, after all.

The IAG share price closed on Friday up 0.11% at $4.47. The company’s shares are now up 0.34% over 2022 thus far.

But could the tide be turning for IAG shares? We do have a vastly different economy to even that of 12 months ago. Inflation is rising, and so are interest rates. And this is causing some ructions and realignments across the ASX share market.

Financial shares like insurers and banks are often touted as effective defensive investments in this kind of macroeconomic environment. So does this mean that IAG could be a defensive buy today for a more uncertain future?

Is the IAG share price a buy today?

Well, one expert investor who thinks it might be is Michael Maughan, of Tyndall Asset Management. Maughan spoke to Livewire recently about his views on the investing landscape. Here’s some of what he said:

Supermarkets and insurance are the two sectors that stand out in the current inflationary environment…

We expect supermarkets will continue to be key defensive havens as inflation accelerates. Insurance is similar in that while repair costs are rising, the pricing environment means they can be absorbed, and longer-term margin goals met. Whatever claims inflation the general insurers are seeing has already been priced into higher premiums, and we see potential for further increases.

This current inflationary environment has seen bond yields rise and expectations increase for significant cash rate rises. This means that the interest earnings on the premium float of insurers are rising and will add meaningfully to profits.

Maughan goes on to name the “larger brands of listed insurance groups” as the main beneficiaries of these factors. Those were Suncorp Group Ltd (ASX: SUN, QBE Insurance Group Ltd (ASX: QBE) and, yes, IAG shares.

But Maughan isn’t the only one recommending a look at IAG today. As my Fool colleague Zach covered last week, ASX brokers Credit Suisse, JP Morgan, Jarden, Barrenjoey Markets and Citi are all bullish on IAG shares right now.

Each broker has a share price target above $5.14. But other brokers like Macquarie, Barclay Pearce and Morgan Stanley are less optimistic, with Morgan Stanley in particular rating IAG as a sell.

So that’s how some expert investors are treating the IAG share price at the present time.

At the current IAG share price, this ASX 200 insurance share has a market capitalisation of $11.03 billion, with a dividend yield of 2.97%.

 

The post Is the IAG share price a defensive buy amid rising interest rates? appeared first on The Motley Fool Australia.

More reading

• Fundie reveals 3 ASX 200 shares with major pricing power to counter inflation
• Broker names 2 ASX 200 shares with major upside potential
• How might the IAG share price fare with another ‘catastrophe’?
• The IAG share price has tumbled 27% in 5 years. Have the dividends been worth it?
• Broker names 2 ASX 200 dividend shares to buy this week

Motley Fool contributor Sebastian Bowen 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 positions in and has recommended Insurance Australia Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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