Click here to watch the video interview with David Tasker.
COVID-19 continues to create problems at a global scale, but some companies in the Australian market have nevertheless been able to thrive.
Speaking to the Investing News Network, David Tasker, managing director at Chapter One Advisors, said that some small- and mid-cap stocks have experienced influxes of capital and are making progress.
“What we’re seeing is a lot of sectors are actually seeing activity from an investor perspective, particularly in the resource sector and a bit of the buy-now, pay-later sector,” he said.
“A lot of that is being driven by a massive influx of new investors into the market as a result of different stimulus packages brought in by the Australian government.”
Tasker explained that coronavirus stimulus packages brought in federally and at the state level put money directly into people’s hands at a time when they didn’t have much to do — as a result, quite a few new investors have entered the market in recent months.
As mentioned, he’s seeing that money gravitate toward the resource space, as well as the buy-now, pay-later industry. Tasker also noted that the biotech market is seeing some interest as well, although it’s an area that can be more difficult for newcomers to understand.
On the company side, Tasker believes that in general this new capital is being put to good use. For example, he said that mining companies are moving forward with exploration and studies, not simply spending money on administrative expenses.
In particular, he noted that gold in Western Australia is gaining traction. “We’re seeing a lot of interest in Western Australian gold projects, because obviously the gold price in relative US to Aussie terms is very high at the moment, very profitable for Australian producers.”
Watch the interview above for more from Tasker on current trends in small- to mid-cap Australian stocks, as well as his thoughts on the overall resource market.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.