'HC' shouldn't just feature the optimistic or continual...

'HC' shouldn't just feature the optimistic or continual so-called 'upramping'.

Analysts can be reluctant to issue a 'sell' call on scrip but from a 'lively' blog tyhis morning, RWC doesn't receive a good wrap. Nonetheless, as I do, DYOR:

Market darlings to fallen angels

Ally Selby: We asked our fundies to bring along one stock that they think is in for some troubled times ahead. Raaz, I might start with you, what did you bring for us today?

Raaz Bhuyan: Reliance Worldwide (ASX: RWC), which obviously floated a few years ago and has done exceptionally well growing in North America. They bought the John Guest acquisition in the UK and that's done quite well. What's happened over the course of the last 18-24 months is, with COVID, you've seen the likes of Home Depot and Lowe's do exceptionally well. And their biggest buyers are effectively the retailers in the US. And so they've done remarkably well out of that.

Our view is that the underlying market for Reliance grows at 2-3%. And they're obviously growing share, but they're not growing at 20%. We are quite valuation driven, and so when the stock went through $5, that was enough for us. But in the short term, we just feel the market's expectations for earnings, at a time when the Fed is raising interest rates and is quite aggressively trying to slow the housing market down - it's almost like you're fighting the Fed.

Ally Selby: When did you sell out of that one?

Raaz Bhuyan: That would've been late last year.