The fund manager Wilson Asset Management (WAM) has identified two undervalued All Ordinaries (ASX: XAO), or ASX All Ords shares, in its portfolio that did well in April 2023.
WAM predominately looks for growth businesses it believes are mispriced by the market and where there could be a catalyst that sends the share price higher.
Let's dive into two of the ASX All Ords share names that WAM talked about.
IPH Ltd (ASX: IPH)
The fund manager described IPH as an international intellectual property services group. It's made up of a network of member businesses, servicing more than 25 countries.
In March, the company's law business detected a portion of its IT systems had been subject to unauthorised access. That access was "primarily limited to the document management systems of the IPH head office and two IPH member firms in Australia, Spruson & Ferguson (Australia) and Griffith Hack, and the practice management systems of those member businesses".
After becoming aware of the incident, IPH said it immediately isolated the systems and removed them from the network. It then implemented its "business continuity plan" to resolve the cyber incident.
WAM pointed out that in April, the ASX All Ords share confirmed it had established new network infrastructure and enhanced security. Those measures "helped alleviate concerns held by the market, which ultimately led to the share price rallying throughout the month".
Estimates on Commsec currently suggest that IPH could grow its earnings per share (EPS) by 16% between FY23 to FY25.
Emerald Resources (ASX: EMR)
Another business WAM talked about was Emerald Resources. The fund manager described the Perth-based company as a business that explores and develops gold projects.
In April, the ASX All Ords share announced it had achieved its quarterly guidance for the three months to March 2023. It produced 28,764 ounces of gold at the Okvau gold mine in Cambodia.
The investment team noted the mine's operating cash flow of US$34.9 million "continues to underpin Emerald Resources' ability to advance its exploration and development".
WAM explained its positivity on the business with the following comments:
We continue to see positive results in gold exploration at its other sites in Cambodia and domestically, and further growth opportunities for the business in its underexplored projects.
