In the current economic climate, would you rather invest in an outdoor apparel retailer that can capitalise on the resumption of international travel and no COVID sales interruption in 12 months, or a gold miner trading at about Net Tangible Assets (NTA) levels with operational activities around the corner?
Emerald Financial analysts Sam Green and Alfred Chan each have 60 seconds to put their case forward on a stock on the ASX that they are keeping a close eye on. In this edition, they slug out a battle between KMD Brands (ASX: KMD) and Calidus Resources (ASX: CAI).
Having added Rip Curl to its portfolio in addition to the existing Kathmandu brand, KMD made $550 million sales in the December half and is back to profitability with $14m net profit, while also paying dividends. It is currently focusing its Rip Curl expansion into the North American market which is about to enter Summer.
Meanwhile, WA-based Calidus has been starting a bit below its previously suggested numbers, but has observed some improvements as gold production is starting to increase. It is forecast to last six months with sustainable production costs around $2,300 per ounce, while the spot price of gold has just reached $3,000.
Keen for more details? Watch below:
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