Company Interview / Richard's seeing value in these fallen angels

Key takeaways:

Hemming focuses on quality ASX stocks sold down by volatility and tax‑loss selling Sees value potential in Lendlease, Healius and select software names such as Hansen Technologies Views DroneShield as a high‑risk, high‑leverage defence play with opaque contract visibility

Richard Hemming from Under The Radar Report outlines opportunities he sees emerging from volatility on the ASX, particularly where quality stocks have been heavily sold down into tax-loss season. Hemming points to large-cap names such as CSL (ASX:CSL), Cochlear (ASX:COH), ASX (ASX:ASX) and Lendlease (ASX:LLC), arguing that exchange-traded funds and stale holders have amplified downside moves, potentially mispricing fundamentally sound businesses.

Lendlease is highlighted as a prime example of a long-term de-rating, with Hemming noting the psychological impact on investors who bought at far higher levels. He stresses the need to stomach short‑term pain in return for what he sees as sustainable dividends. He also flags Healius (ASX:HLS) as a post‑COVID laggard, now trading at a small fraction of sales despite its role in essential pathology services and a net cash position. In his view, execution on cost-cutting and potential asset sales could be catalysts.

In software, Hemming groups Gentrack (ASX:GTK) and Hansen Technologies (ASX:HSN) as “fallen angels” with mission‑critical billing systems for utilities, preferring Hansen for its stickier, largely on‑premise customer base. In defence, he views DroneShield (ASX:DRO) as higher risk but with significant operating leverage if ambitious sales targets and SaaS transition plans are met.