Cyan Investment Management Director Dean Fergie cautioned investors to focus on a business’ fundamentals, rather than pricing shares on the momentum of their industry.

Speaking on Reach Markets’ fortnightly ‘The Insider: Meet The Fund Manager’ webcast series, Mr Fergie said a recent fixation on momentum has created an environment in which usual valuation metrics are less reliable.

Even so, Mr Fergie identified three businesses he believes are well placed for growth under current market conditions.

Raiz Invest Australia (ASX: RZI)

Formerly known as Acorns, Raiz Invest (ASX: RZI) is an investment app which allows users to put small sums of money into one of six stock portfolios managed by the company.

The company hit the bourse in 2018 with an issue price of $1.80 per share, and failed to make an impact – closing its first day of trade at $1.40. And until 2021, the price fluctuated between around $1.10 and $0.40.

But with interest rates hovering at historic lows and markets performing well, Mr Fergie says this sector will enjoy strong tailwinds in the months ahead.

Click here to watch a recording of Dean’s insights on Raiz Invest.

Alcidion Group (ASX: ALC)

Alcidion (ASX: ALC) is a healthcare technology company enabling doctors to digitally record patient information.

Mr Fergie noted the company has a strong recurring revenues and net cash balance, and are very close to breakeven, and continue to sign on new clients across the UK and Australia.

Click here to watch a recording of Dean’s insights on Alcidion.

Swift Media Limited (ASX: SW1)

Mr Fergie’s final pick was Swift Media (ASX: SW1), a company which provides industry-specific digital entertainment services for the resources, hospitality and aged care sectors.

This includes very specific and targeted content and messaging – outlining safety practices, menus and activities relevant to users at a particular site.

The company has struggled in recent times, but has since brought in new leadership and the company’s financials are now pointing in the right direction, he said.

Click here to watch a recording of Dean’s insights on Swift Media.

This article is a summary of the information Dean shared with us during our fortnightly ‘The Insider: Meet the Fund Manager’ session. You can watch a recording of the full session here, or you can click here to book into our next installment of the series.

Reach does not assume responsibility for the accuracy or completeness of any information provided, and the views expressed are not reflective of Reach Markets position.

Any advice contained within this presentation is general advice and does not consider your personal circumstance, you should consider whether it’s appropriate for you.

The information we are giving you is for educational purposes only. “Investing is about understanding your risk” and every time you invest in the share market there is a risk of loss.

Sources:

• Alcidion: About
• Raiz: FAQ
• Market Index: Raiz Invest
• Stockhead: Fintech Raiz Invest falls in ASX debut after $15m IPO
• Swift Media: About Us