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If you’re struggling to come up with investment ideas at the moment, you’re not alone.
With so much turmoil in the world, even professional investors and businesses themselves struggle with uncertainty and low conviction.
This may mean that you should clear your mind.
And what better way to start with a clean slate than to start looking at ASX stocks you’ve never even read about, let alone bought.
Here are a couple of tips for buying outside the square:
The world is changing again
After the Fukushima nuclear accident in 2011, this type of energy seemed to fall out of favor around the world. Germany, for example, has accelerated plans to close its nuclear power plants.
But now, 11 years later, Russia’s invasion of Ukraine has caused a rethink.
Continental Europe, faced with acute energy shortages due to rapidly declining dependence on Russian gas, is reassessing the value of nuclear power.
“Political momentum for uranium as a clean and reliable energy source, especially in Europe, is gaining momentum”, Red Leaf Securities CEO John Athanasiou told The Bull.
Therefore, he recommends buying shares of the uranium producer Paladin Energy Ltd (ASX: PDN).
“The uranium company owns 75% of the shares of the Langer Heinrich mine in Namibia. The share price is highly correlated with the price of uranium.’
“I believe that we are in the very early stages of a nuclear renaissance and that the potential of these stocks has not yet been appreciated by the market.”
Athanasiou believes Paladino’s valuation will rise along with demand for uranium.
“We expect higher uranium prices to be reflected in improved share prices moving forward.”
There’s nothing better than pricing in a time of rampant inflation
But Afonasiou believes the share price is poised to rebound in tougher economic times.
“During inflationcompanies with pricing power tend to outperform,” he said.
“Ansell, a leading manufacturer of protective industrial and medical gloves, was able to pass on increased production costs without a significant impact on demand.”
Ansell shares are down nearly 20% this year.
But because of his pricing power over his products, Afonasiou is optimistic.
“We expect the share price to do better.”
Ansell is polarizing in the wider professional community. Five out of 13 analysts currently rate it a buy, while seven recommend the stock a hold, according to CMC Markets.