Adairs has been added to the ASX300. This will cause some fund...

Adairs has been added to the ASX300. This will cause some fund managers to lift their allocation of Adairs to fit their investment mandates.

I also found this snippet set out below. It was published in the Livewire Markets email sent out this morning.

In an article by Glenn Freeman he interviewed David Wanis CIO and portfolio manager, Longwave Capital Partners who mentioned a number of under valued stocks including ADH. Whatt he said is set out below.

Cheers..............................Daicosisgod

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Only quality matters

Small retail is another sector he believes is ripe for opportunity, especially given the market’s ongoing obsession with companies that can scale up. But Wanis cited a few reasons for his view that some small retailers have driven business improvements since the onset of the pandemic, despite not necessarily growing. These are:

• Investment in “omnichannel” online and in-store retailing
• Increased bargaining power with landlord tenants
• Closer direct relationships with consumers.

Taking a forward P/E view of around two years, Wanis and his team believe the market doesn’t appreciate the discount at which some companies in the sector are currently trading. Adairs (ASX: ADH), a more than 100-year-old Melbourne-based homewares retailer, is one of these companies held by Longwave.