# ASX: best value vs. growth stocks



## derangedlawyer (6 June 2020)

Planning to setup a long value, short growth strategy for the second part of the year.

Curious to know your opinion about best representatives of value stocks and growth stocks in the ASX.


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## derangedlawyer (6 June 2020)

ETF wise, on the ASX the only one particularly leaning towards creating a value stocks index is VVLU:
https://www.marketindex.com.au/asx/vvlu
https://api.vanguard.com/rs/gre/gls/1.3.0/documents/16188/au
Top holdings: 1. Kraft Heinz Co.2. Biogen Inc.3. HP Inc.4. Cigna Corp.5. Walgreens Boots Alliance Inc.6. CVS Health Corp.7. Valero Energy Corp.8. Micron Technology Inc.9. AT&T Inc.10. T-Mobile US Inc.
However none of the major ones (walmart, johnson and johnsons, exxon, cisco, proctor and gamble, etc) is present.


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## Telamelo (19 September 2020)

derangedlawyer said:


> ETF wise, on the ASX the only one particularly leaning towards creating a value stocks index is VVLU:
> https://www.marketindex.com.au/asx/vvlu
> https://api.vanguard.com/rs/gre/gls/1.3.0/documents/16188/au
> Top holdings: 1. Kraft Heinz Co.2. Biogen Inc.3. HP Inc.4. Cigna Corp.5. Walgreens Boots Alliance Inc.6. CVS Health Corp.7. Valero Energy Corp.8. Micron Technology Inc.9. AT&T Inc.10. T-Mobile US Inc.
> However none of the major ones (walmart, johnson and johnsons, exxon, cisco, proctor and gamble, etc) is present.



Perhaps check out/consider SciDev *SDV*

Detailed SDV developments & revenue pipeline/forecast below:









						Scidev Ltd (ASX:SDV)
					

SciDev is targeting the global US$10bn water treatment, N.A oil & gas and mineral processing markets with its unique and bespoke chemistry solutions for tier-1 customers.




					www.smallcapinsider.com.au
				




https://www.marketindex.com.au/asx/sdv

DYOR as always.. Cheers tela


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## galumay (20 September 2020)

So is that a recommendation as a short, growth?


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## Telamelo (20 September 2020)

galumay said:


> So is that a recommendation as a short, growth?



*SDV* New Canadian trial imminent:
Scheduled to occur late Sep/Oct '20, SciDev commented that the trial could generate as much as $1M+ of revenue and is anticipated to last for approximately 2 weeks.

During the trial, the focus will be on using SciDev’s chemistries in Syncrude’s CND$1.9 billion full-scale Tailings Centrifuge Plant.

SciDev further pointed out that its staff will be on-site in the Canadian plant to support the trial and ensure it is successfully performed.

The company added that fluid tailings management is an area which has been placed under increased regulation in the Canadian Oil Sands industry.

Commenting on the transaction, SciDev Managing Director and CEO, Lewis Utting said:

“The order from Syncrude represents SciDev’s first entry into the oil sands sector, a significant potential area of growth for SciDev. We are pleased that our offering is continuing to be recognised in the oil and gas sector, which we believe is an exciting area of growth for the Company.”
-------------------------
Back in late February '20, SciDev released its 1H20 financial results whereby the company reported revenue of $6.12 million for the half, representing a massive +382% increase on the prior corresponding period of 1H19.

Then recently in August '20, SciDev raised $7M in cash @ 0.65c to advance near term growth projects. Huge potential growth projected into 2020/21 and beyond imo as ticking all the boxes.


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## galumay (20 September 2020)

Did you read the original post in the thread, or just start ramping randomly?!


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## finicky (16 December 2020)

Graph showing almost up to date spread of price/earnings for growth versus value stocks on the ASX. Not news I guess but it starkly shows how extreme it is, higher than just before the 2000 tech crash. Moreover, if you read the article, he says every time in the past more than a hundred years that this kind of divergence happened it preceded a reversion where value very strongly outperformed. My only specific stock idea on this has been fund manager Platinum Asset Management which is short big tech and long under valued out of favour industrials, so of course it has under performed for years.

*Has there ever been a better time to buy unloved value stocks?*

"Ever-rising multiples – which is just paying more and more for a dollar earnings – is not a sustainable process. The reversal from the October extremes started in November, but it is impossible to forecast the timing of these cycles, of course. If almost 200 years of history are any guide, however, we may expect that: 


the initial reversals of the divergence will be dramatic and volatile, but 
the reversal of the high P/E bubble will take several years to normalise, and 
this cycle will end like all the others since 1825 with value setting new all-time relative records."

DR PHILIPP HOFFLIN Lazard Asset Management


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