One of the wealthiest people in Australia, Alex Waislitz, was recently interviewed by the AFR. The billionaire has made some big gains on Afterpay Touch Group Ltd (ASX: APT) and ReadCloud Ltd (ASX: RCL) and now has the next phase of ideas.
In the interview he said that whilst fintech shares are running hot, there is plenty of opportunity for fintech shares to be successful due to major banks not investing where they should, therefore leaving them open to disruption.
He also said that a number of shares were trading with hefty multiples, but earnings are growing and balance sheets are more effective than in previous years. Earnings multiples shouldn’t be relied on in isolation for valuation.
Some of the shares he said that he likes are Hub24 Ltd (ASX: HUB), Onevue Holdings Ltd (ASX: OVH), Finbar Group Limited (ASX: FRI), Decmil Group Limited (ASX: DCG) and Southern Cross Electrical Engineer Ltd (ASX: SXE).
The main company that he mentioned was Mesoblast Limited (ASX: MSB). He said that in the past few years it has reduced in value by two thirds, yet now has a commercialised product, is generating real revenue and has three potential billion-dollar treatments in early stage trials. Indeed, he said “I believe Meso is destined to take its place as one of the world’s truly great biotechs.”
He thinks Mesoblast still represents “exceptional” value and may be about to deliver on its long-held potential.
It’s a big vote of confidence for Mesoblast, but it could be some time before it reaches sustainable profitability. It wouldn’t be at the top of my personal watchlist, as biotechs aren’t my thing, but that doesn’t mean it can’t grow strongly from here.
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Onevue Holdings Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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