Thoughts on markets, investing, and equity research.
Consumer discretionary split into winners and losers. Differentiated platforms trade below fair value while legacy retail models carry premiums that assume a recovery not yet visible in the data.
Healthcare barely registered this reporting season. Three mid-caps show 32-177% upside to fair value. Healius carries the second-largest upside gap across all 278 companies in our coverage.
The post-COVID travel recovery is real but wildly uneven. THL and HLO show 115-188% upside to fair value. The question is who is converting bookings into sustainable earnings.
Gold is above US$2,900/oz but only one of five ASX gold miners trades below fair value. West African Resources offers 122% upside. The other four are priced as though record gold is the permanent floor.
Six ASX stocks yield between 6% and 8.5%. Three offer genuinely durable income backed by contracted revenues and hard assets. Three carry sustainability questions the headline yield conceals.
Five ASX stocks show the widest price-to-fair-value gaps in the Feb 2026 reporting season. Our analysis asks what the market knows or fears that the models do not, and whether the scepticism is justified.
Four ASX mining services companies earn 10-45% ROIC without commodity exposure. Our analysis finds only Lycopodium (LYL) trades below fair value at A$14.98 vs A$16.26. GNG and PRN are fairly priced, while IMD carries a 27% premium.
Three ASX defence stocks ride the same spending cycle but carry vastly different valuations. EOS trades 50% above our $2.41 fair value on unproven delivery scale. Austal is 17% over at $5.61. Codan at $34.69 is 64% above our $12.56 estimate.
Four ASX housing supply chain companies, all in trough-cycle earnings, all waiting for the same recovery. GWA is the only one priced at fair value (A$2.61). Reece trades 32% above our A$10.71, James Hardie 27% above A$27, Fletcher Building 41% above NZ$1.96.
Three ASX defence supply chain companies that do not make the shortlists but sit where spending actually flows, offering between 31-163% upside to fair value.
Wesfarmers, GYG, and Breville have management credibility of 8.7, 9.0, and 8.1 out of 10. All are 24-27% above fair value. The quality premium has absorbed the margin of safety.
HUB24 has grown to 9.3% platform share and is 57% above our A$42.23 fair value. Magellan has compressed from 63bps to 55bps in fees and is 35% above A$6.13. Insignia is priced at CC Capital scheme value. AMP is at equilibrium earning below its cost of equity.