Ausbiz The Call: Claude Walker Talks Ansarada and Eroad

Yesterday, I appeared on Ausbiz’s the Call to discuss a range of stocks with Adam Dawes and Nadine Blaney.

Of particular interest may be our discussions of Ansarada (ASX: AND) and Eroad (ASX:ERD).

The discussion of Eroad starts at 2 minutes and 40 seconds, in the video below, while the discussion of Ansarada starts at 25 minutes and 30 seconds.

Ansarada has fallen significantly since I first bought shares in it, and from Adam Dawes’ comments, the company is not well thought of in the broker community. That leaves upside in terms of sentiment, but it also may be grounded in a legitimate assessment that the business is medium quality at best. For now, I take some comfort in the recent director buying. However, I’m not inclined to add to the position since I’ve already built my position in it (unfortunately, at higher prices). I have it trading on around 4-5x revenue which looks cheap to me.

Unfortunately it may take some time for the company to improve its reputation.

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This article documents some of the factors influencing a company’s share price, but the article is not financial advice, it is general in nature, and our disclaimer is here. Claude owns shares in ERD and AND.