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Why Alex Waislitz thinks investors should watch these 3 companies

November 3, 2021

Why Alex Waislitz thinks investors should watch these 3 companies

Alex Waislitz has become a household name within the investment community after growing his wealth to $1.5 billion while serving at the helm of Thorney Investment Group.

Alex Waislitz has become a household name within the investment community after growing his wealth to $1.5 billion while serving at the helm of Thorney Investment Group.

His successes in the market have repeatedly earned him a place in the Australian Financial Review’s Rich List (ranked 77th this year) as well as the nickname ‘Australia’s Warren Buffett’.

Mr Waislitz owes this fortune to his keen understanding of small and mid-cap investment markets and the strength of the connections he has forged with CEOs and other relevant professionals throughout Australia.

In August, Mr Waislitz set aside time in his jam-packed calendar to share with Reach Markets’ subscribers a trio of companies in which he sees potential.

The CEOs of all three technology companies selected by the veteran investor – Yojee (ASX: YOJ), Southern Cross Electrical Engineering (ASX: SXE) and DECMIL (ASX: DCG) – are all featured on Reach Markets’ upcoming The Insider: Meet the CEOs webcast.

Here’s why Mr Waislitz thought these businesses were worth your attention.

Yojee

Yojee (ASX: YOJ) is an Australian freight logistics company that Mr Waislitz has been invested in for a couple of years. Mr Waislitz said the company is not the kind of business that will deliver “superstar results straight away” – but added that’s not a bad thing.

Rather, he said, Yojee is a disruptor that is working with some of the largest logistics companies in the world (four of the 10 largest are already on Yojee’s client list) and needs time to navigate the bureaucracy involved in signing up these business “behemoths”.

With cash in the bank and numerous high-profile clients, Yojee is in a good position to grow, Mr Waislitz said.

Southern Cross Electrical Engineering

Southern Cross Electrical Engineering (ASX: SXE) provides electrical, instrumentation and maintenance services for resources, infrastructure and construction projects, and Mr Waislitz said they should do well in the current market cycle.

Mr Waislitz noted the company was trading at just over three times EBITDA to enterprise value, making it relatively cheap despite sitting on cash and being in a position to win new work.

DECMIL

DECMIL (ASX: DCG) provides design, engineering, construction and maintenance services, and although it has been around a while, Mr Waislitz said it has been plagued by a few bad contracts.

The company has recently taken steps to cast off these difficulties, appointing new leaders and taking steps to deal with the businesses debts.

Mr Waislitz said these changes represent “a new beginning” for the company, adding he believes it has the potential to achieve revenues “north of half a billion dollars in [FY]22 and beyond”.

 

Please join us next Wednesday, 10th November at 12pm (AEDT) when we sit down with the CEOs of the three businesses discussed by Alex Waislitz to hear more about their operations and plans for the future, and get the inside story on these promising small cap companies. Click here to book in.

 

Sources:


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