There are some ASX shares that fundie Wilson Asset Management (WAM) really likes at the moment.
WAM is a fund manager that operates a variety of listed investment companies (LIC) that run a variety of different strategies.
It operates: WAM Capital Limited (ASX: WAM), WAM Leaders Ltd (ASX: WLE), WAM Global Limited (ASX: WGB), WAM Microcap Limited (ASX: WMI), WAM Alternative Assets Ltd (ASX: WMA), WAM Research Limited (ASX: WAX) and WAM Active Limited (ASX: WAA).
Each month WAM outlines some of the ASX shares that it has a bullish opinion about across its portfolios.
Here are some of the ASX shares that the fundie likes right now:
Nuix Limited (ASX: NXL)
WAM Active described Nuix as a business that's a leading provider of investigative analytics and intelligence software, with over 1,000 customers in 78 countries utilising the software to manage cyber security risk, compliance and fraud.
Originally, the company begin in the early 2000s with the development of an algorithm to search unstructured data.
As of today, the Nuix platform is underpinned by more than 15 years of research and development, with over $200 million of research and development costs incurred since 2008.
The effectiveness of Nuix's software has led it to be used in the investigation of headline events including the 'Panama Papers' and the royal commission into misconduct in the banking, superannuation and financial services industry in Australia.
The ASX share is headquartered in Australia with 421 employees. However, approximately 80% of the company's $175.9 million revenue that was generated in FY20 came from overseas.
There was some keen investor interest in Nuix when it first listed, with the Nuix share price rising 50% on its first day of trading. It now has a market capitalisation of $3.1 billion.
Serko Limited (ASX: SKO)
Serko is a New Zealand based online travel booking and expense management company for the business travel market.
Wilson Asset Management said that the ASX share has benefited from an uplift in travel and the state by state reopening of borders between New Zealand and Australia.
Serko said in its recent FY21 half-year result for the six months to 30 September 2020, total operating revenue of NZ$5.1 million was down 65% because of COVID-19 pandemic travel disruptions.
Half-year total travel booking volumes for the company during the period were down 77%, being 23% of the volumes in the same period a year ago, but have since risen to 35% for October (New Zealand at 76% and Australia at 26%).
However, the percentage of transactions occurring on its premium Zeno platform continues to increase, representing around 38% of online transactions in September, up from 25% of online transactions at the end of March 2020.
The bottom line was a net loss after tax for the period of NZ$10.1 million compared to a net loss of NZ$0.9 million in the prior period due to lower revenues and Serko investing in expansion into the Northern Hemisphere ahead of an anticipated travel market recovery.
Whilst there was an average net cash burn of $1.8 million per month for the six-month period by the ASX share, it was within the $2 million COVID-19 cost saving cap set by the company. After the recent capital raising, Serko had over $90 million of cash on hand at the time of releasing the report, which management said positioned the company well for an anticipated travel market recovery.
