1 October we become SureStone CapitalSame team, same ABN. Our website and email addresses move to surestone.com.au.
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Key points:
• Audinate hit by downturn but optimistic about growth.
• Challenges in travel sector persist, yet potential remains.
• Investing cautiously in pessimistic market conditions.
Steve Johnson from Forager Funds comments on Audinate's recent performance, citing their challenging start in FY25 with a gross profit of $7.2 million and ongoing headwinds. Despite these short-term difficulties, the company is hopeful about growth due to Dante technology and new product launches.
He expresses caution about investing in small-cap stocks, highlighting volatility. Although Steve doesn't own Audinate, he respects investors not swayed by short-term drops. He notes disappointing share price reactions among beloved small-cap stocks on ASX recently.
Steve discusses the travel sector's cyclical nature. He mentions investments like Flight Centre and Qantas, noting that slow post-COVID recovery and airfare deflation impact revenues. Despite slow recovery, he sees potential over the medium term.
