Thorney Investment Group chief executive Alex Waislitz knows what he's talking about when it comes to investments.

He founded Thorney Group after overseeing the investments of cardboard magnate Richard Pratt and Australia's first billionaire Robert Holmes a Court.

These days he's in the rich list himself, ranked the 73rd wealthiest person in the nation on the current The Australian rankings.

As well as a private fund, Waislitz runs 2 ASX-listed investment funds — Thorney Technologies Ltd (ASX: TEK) and Thorney Opportunities Ltd (ASX: TOP).

He recently named 3 ASX shares those funds hold that he currently has the most hope for:

Signing up massive clients and cash in the bank

Perth business Yojee Ltd (ASX: YOJ) makes software that manages logistics and supply-chain management.

The share price hasn't done a great deal this year, dropping from 20 to 18 cents as of Thursday's market close.

But Waislitz likes how it looks ready for explosive growth.

"This is a company that's progressively signed up 4 of the largest 10 logistics companies in the world," he told a Reach Markets webinar.

"It's got cash in the bank to roll out that growth with those companies and it's time is coming."

For the 2021 financial year, Yojee reported 63% revenue growth — but that failed to sustainably push the stock price up.

The Thorney team is willing to be patient though.

"We're quite excited about them," said Waitslitz.

"It's a company to watch… At the moment the revenues are relatively small, but we're hopeful that over the next 1 to 3 years you might see them really power ahead."

2 engineering ASX shares that'll cash in on infrastructure boom

The other 2 ASX shares, which are both engineering-related, are held by the Thorney Opportunities fund.

Southern Cross Electrical Engineer Ltd (ASX: SXE) provides services to clients like data centres, mining sites, and utilities.

For a business that provides a 6% dividend yield, the share price is very low.

"We think it's really cheap because it's trading at just over 3 times EBITDA [earnings before interest, taxes, depreciation, and amortisation] to the enterprise value," said Waislitz.

"Sitting on cash, it's really well-positioned to win a lot of work into that [resources and infrastructure] thematic."

He also thought management was "too conservative" in its performance forecasts.

Southern Cross shares closed Thursday at 66 cents, after starting the year at 57 cents.

Construction engineering company Decmil Group Limited (ASX: DCG) has just been a nightmare for investors recently.

Its stock price has dropped about 90% over the past 2 years.

But after dealing with those "bad contracts", Waislitz is convinced the ASX share has hit the bottom now.

"They had to recapitalise their balance sheet to deal with their debt and allow them some growth capability, which they've done," he said.

"They've had a change of leadership at the CEO level, which has happened, and some other executives."

The Thorney team thinks Decmil is set to rake in more than $500 million of revenue for the current financial year, compared to $298.1 million for the 2021 financial year.

"In a sense, a new beginning for this company that's been around for a while."

The post 3 ASX shares Australia's 73rd richest person loves appeared first on The Motley Fool Australia.

Between now and Friday 9 October, there are a range of opportunities to capture high yield ASX dividends. Some of these companies are small caps, albeit with solid performance, while others are ASX 200 giants. For investors interested in building an income-generating portfolio, these companies may represent some solid additions.

A quick guide to ASX dividends

When building a sustainable portfolio of ASX dividend shares, investors need to focus on three things. First, there is no need to look only at the top 20 or 50 companies. A company has to have a proven, cash-generating business model. Second, you must be able to invest in ASX dividend shares without sacrificing your capital. Third, a company should be able to pay the dividends from direct earnings. 

So let's take a look at my pick of 4 high yield ASX dividend shares to buy right now.

Southern Cross Electrical Engineer Ltd (ASX: SXE)

Southern Cross is an electrical contracting company. I worked on several construction projects for the company more than 20 years ago. This share goes ex-dividend on 7 October, 2020. At today's closing price, the payment will be a yield of 6.12%. In addition, this ASX dividend share has paid a consistent dividend in 8 of the past 10 years. In the past 3 years, the Southern Cross share price has fallen after payment, but has regained ground again. The company already has $330 million of secured project work in FY21, which accounts for 80% of the revenue target.

XRF Scientific Limited (ASX: XRF)

XRF is a small cap company that manufactures equipment and chemicals used in the preparation of samples for analysis. To illustrate the value of this company, in FY20 it increased its net profit after tax (NPAT) by 46%. This ASX dividend share goes ex-dividend on 1 October with a payment that will yield 4.59% based on today's closing price. Based in Perth, the company is keyed into the mining industry and has a diverse range of mining clients. 

GR Engineering Services Ltd (ASX: GNG)

GR Engineering provides engineering design, procurement and construction services to the mining and mineral processing industry and the provision of operations, maintenance, projects and advisory services to the oil and gas sector. It forecasts revenue for FY21 to be in the range of $280 million to $300 million, with improvement in margins.

This ASX dividend share goes ex-dividend on 8 October with a payment that will yield 3.96% based on today's closing price.

Harvey Norman Holdings Limited (ASX: HVN) 

Harvey Norman has had a great year during the pandemic. In fact, NPAT rose by 19.4% compared to FY19 due to the work from home phenomenon, and an increase in online sales. The Harvey Norman ASX dividend payment will yield 3.93% at today's closing price. The ex-dividend date is 9 October.

The post 4 high yield ASX dividend shares to buy right now appeared first on The Motley Fool Australia.

He is also a key figure in Thorney Opportunities Ltd (ASX: TOP) and Thorney Technologies Ltd (ASX: TEK).

In the interview he said that whilst fintech shares are running hot, there is plenty of opportunity for fintech shares to be successful due to major banks not investing where they should, therefore leaving them open to disruption.

He also said that a number of shares were trading with hefty multiples, but earnings are growing and balance sheets are more effective than in previous years. Earnings multiples shouldn't be relied on in isolation for valuation.

Some of the shares he said that he likes are Hub24 Ltd (ASX: HUB), Onevue Holdings Ltd (ASX: OVH), Finbar Group Limited (ASX: FRI), Decmil Group Limited (ASX: DCG) and Southern Cross Electrical Engineer Ltd (ASX: SXE).

The main company that he mentioned was Mesoblast Limited (ASX: MSB). He said that in the past few years it has reduced in value by two thirds, yet now has a commercialised product, is generating real revenue and has three potential billion-dollar treatments in early stage trials. Indeed, he said "I believe Meso is destined to take its place as one of the world's truly great biotechs."

He thinks Mesoblast still represents "exceptional" value and may be about to deliver on its long-held potential.

Foolish takeaway

It's a big vote of confidence for Mesoblast, but it could be some time before it reaches sustainable profitability. It wouldn't be at the top of my personal watchlist, as biotechs aren't my thing, but that doesn't mean it can't grow strongly from here.

The post One of Australia's richest people reveals his latest share ideas appeared first on The Motley Fool Australia.

Here's why.

Macquarie Telecom Group Ltd (ASX: MAQ)

Cannacord Genuity has upped its price target from $26.80 to $27.10 and maintained its buy rating on telecommunication and hosting services company Macquarie Telecom Group Ltd after its FY18 results were reported to be in line with progress.

Cannacord labelled Macquarie Telecom's operations as "smooth sailing" after FY18 revenue of $233.6 million came in just above the broker's forecast of $232.4 million with hosting revenues up 17% year-on-year.

The broker thinks the company's cash conversion of 109% is "extremely healthy" – well ahead of its 99% forecast, with Cannacord increasing its group revenue forecast for FY19 by 2%, also nudging up its FY19F EBITDA forecast by 1%.

On Cannacord's forecasts Macquarie Telecom shares are trading on a FY19 EV/EBITDA multiple of 9.2x, but the broker estimates its shares could trade on a 10.8x multiple, even allowing a 15% discount for illiquidity.

Autosports Group Ltd (ASX: ASG)

Wilsons has placed a buy rating on luxury and prestige motor vehicle dealer group Autosports Group Ltd with its 12 month price target of $1.84 under review.

According to Wilsons, Autosport's FY18 results were "broadly in line" with forecasts, with normalised NPATA of $31.7 million up 8% on FY17 and coming in 3% above Wilsons' estimate.

Autosports management expect further EPS growth in FY19 driven by its Melbourne and Canterbury BMW acquisitions, but the company has also flagged challenging conditions throughout FY19 in the wider vehicle market.

Wilsons says Autosports EPS growth is encouraging, but will be dependent on the new vehicle sales market.

McPherson's Ltd (ASX: MCP)

CCZ Equities Research has a buy recommendation on small cap consumer products company McPherson's Limited as its green and offshore growth strategies continue to build momentum.

According to CCZ, offshore growth surprised the broker on the upside when its FY18 results came through – with revenue of $18 million more than doubling from $8 million in FY17.

Sales in China increased from $1 million to $7 million over the period with the company focused on a ramp up of activity across China and Singapore.

CCZ has expectations of operating cash flow of $15 million for FY19 and capex of $4 million with FY18 cash flow coming in at $6.9 million – $2 million lower than the broker's expectations.

McPherson's balance sheet has now de-leveraged and in the view of CCZ, holds capacity for between $50 million and $70 million of acquisition potential should a suitable opportunity emerge.

Southern Cross Electrical Engineer Ltd (ASX: SXE)

Moelis Australia think FY18 results for electrical services supplier for major resource projects, Southern Cross Electrical Engineer Ltd look good, with the broker expecting better for FY19.

According to Moelis, Southern Cross' FY18 results came in "broadly ahead of expectations" with NPAT and EBITDA both beating Moelis and consensus estimates and the fully-franked 3c per share final dividend a "positive surprise'.

FY19 revenue guidance for Southern Cross is expected to be greater than $400 million, according to the broker, with Moelis saying the company has an "attractive growth profile" partly driven by its exposure to the multi-year, infrastructure and investment cycle which is expected to take place over the next few years.

Macmahon Holdings Limited (ASX: MAH)

Moelis also has mining services company Macmahon Holdings on its buy list after the company delivered on expectations for FY18 with a potential upside for FY19.

Macmahon's FY18 EBIT of $41.2 million was slightly above the broker's $40.7 million estimate with its FY19 EBIT guidance of between $70 million and $80 million appearing conservative given the potential conversion of near term growth opportunities on top of $1 billion contracted revenue.

Moelis considers Macmahon undervalued at 3.2x FY19e EBITDA and 7.1x EBIT with the broker upping its price target to 30c per share from 28c.

The post 5 small cap stocks brokers are tipping appeared first on The Motley Fool Australia.

Unfortunately not all shares were climbing higher yesterday. These four shares in particular sunk lower. Here's why:

Ardent Leisure Group (ASX: AAD) shares dropped lower by almost 8% to $2.35 after it emerged that four people had been killed in a tragic incident at its Dreamworld theme park in the Gold Coast. According to the ABC a malfunction on the Thunder River Rapids ride led to the water-based raft ride flipping over. Dreamworld has closed its doors whilst the incident is investigated.

Asaleo Care Ltd (ASX: AHY) shares fell almost 3.5% to $1.41 despite there being no news out of the personal care and hygiene company. Asaleo Care has been struggling this year due to the terrible mix of higher input costs and increasing competition. As a result its margins have been decimated and management is now expecting to post a drop in full year earnings. Whilst its shares do look cheap now, I would approach this one with caution.

Bega Cheese Ltd (ASX: BGA) shares plunged almost 17% to $5.40 after the dairy company released a disappointing update to the market. Weakness in infant formula and milk powders has led to management warning that it expects EBITDA to be in-line with FY 2016's result. With the high-growth infant formula business stalling and EBITDA growth non-existent, 35x full year earnings for its shares was too high for many investors.

Southern Cross Electrical Engineering Ltd (ASX: SXE) shares were crushed on Tuesday, falling a whopping 23% to 45 cents. The decline was a result of the mining services company advising that the first half had been slower than forecast in almost all its businesses. As a result it expects full year net profit to come in between $4 million and $5 million. This is a significant drop from last year's result of $5.4 million.

The post Why these 4 ASX shares are getting smashed this week appeared first on The Motley Fool Australia.

Its shares are down by a massive 22% to 45.5 cents after it advised that due to a slower-than-expected ramp-up of work, management expects the company to make a net loss of $2 million for the half year ended 31 December 2016.

Although the significant mobilisation of its oil and gas projects has commenced, it is far later than the company had envisaged. Furthermore, despite tendering activities in the mining and utilities sectors remaining strong, a number of its clients have not released contract packages as quickly as first expected.

Another factor negatively impacting its first half results will be its newly acquired telecommunications subsidiary Datatel. Like other sides of the business, it too has suffered from a slowdown of work in the NBN roll out in Western Australia.

But management expects things to pick up in the second half, especially with its expansion onto the east coast recently commencing.

As a result the company believes that it will deliver full year net profit after tax in the range of $4 million to $5 million.

Whilst it is great to see that the company expects a much stronger second half, it can't escape the fact that its full year net profit after tax forecast is significantly lower than FY 2016's results.

In FY 2016 Southern Cross Electrical Engineering delivered underlying net profit after tax of $5.4 million. This means FY 2017's result will be a drop of 7.4% to 26%. Judging by the drop in its share price today, it would appear as though investors are fearing the worst.

Considering how poorly the company has done at forecasting its first half performance, I don't have a great deal of confidence in the company forecasting the rest of FY 2017.

Whilst the shares of mining services companies such as Southern Cross Electrical Engineering, Worleyparsons Limited (ASX: WOR), and Monadelphous Group Limited (ASX: MND) have performed strongly this year, I would take profits and move out of the sector.

Capital expenditure is falling, competition is strong, and margins are falling. This doesn't bode well for growth in my opinion and investors would be better served in other sectors.

The post Southern Cross Electrical Engineering Ltd shares are being crushed today appeared first on The Motley Fool Australia.

As the construction and engineering sector table below shows, the average decline in share price is 58%, and only 3 companies out of 31 have managed to increase their share prices.

By comparison, the S&P/ASX 300 (Index: ^AXKO) (ASX: XKO) is up 14.5% since early January 2013.

Data provided by: S&P Global Market Intelligence

But some fund managers have been playing that space for a while now with some success, while others are dipping their toes in. So, could now be the time to re-enter the mining services sector?

WAM Capital Limited (ASX: WAM) chairman and well-known fund manager Geoff Wilson thinks so, recently naming Southern Cross Electrical and Maca Ltd as two companies his funds have invested in. Ben Griffiths from Eley Griffiths also agrees that the worst could be over.

Forager Funds is another fund manager diving into the sector and recently held shares in MacMahon Holdings, GR Engineering and Service Stream. The 3 companies are up 15%, 18% and a whopping 76% since the start of this year. Some of these companies aren't really mining services companies – but provide construction and engineering services to other sectors such as telecommunications. Service Stream is one that is profiting from the roll-out of the National Broadband Network.

If the commodities cycle has bottomed as many commentators think, then it does suggest that the most likely course from here is upwards. If resources companies start opening their purses and spending that will be the key factor in the revival of the mining services sector.

Foolish takeaway

Many companies in the sector look very cheap. Monadelphous is trading on a trailing P/E ratio of 8.7x at the current price of $7.77, and GR Engineering on a P/E of just over 9x, and paying a fully franked dividend yield of more than 10%.

Now may be a perfect time to take an in-depth dive into the sector with the potential to uncover some gems.

The post Why this fund manager is ploughing back into mining services appeared first on The Motley Fool Australia.

Still, as we already know, that doesn't mean all stocks posted a positive return. Here's our view on 4 stocks that investors took a dislike to today.

Hastings High Yield Fund (ASX: HHY) fell 41.7% to 10.5 cents, after the company notified the market that its sole asset was likely to see nothing or a very low return of capital from its remaining asset. That sole asset is a floating rate note security in Cory Environmental – a waste collection, disposal and recycling business in the UK. It seems unusual that shares haven't fallen much further, given the potential for shares to be worthless.

Rewardle Holdings Ltd (ASX: RXH) dropped 10.5% to 34 cents after resuming trading, following a $5 million of more than 15 million shares at 33 cents per share. The company says the placement was heavily oversubscribed and justifies its strategy. Essentially, the company provides solutions for small to medium businesses with customer engagement tools -or as the company refers to it – 'giving the buy 9, get 1 free paper punch card a digital makeover'.

Southern Cross Electrical Engineer Ltd (ASX: SXE) ('SCEE') also dropped 10.5% to 34 cents, after announcing that it expected to make a loss in the second half of this year. SCEE also said its full-year net profit after tax is still uncertain. Yet another mining services company with an uncertain future by the looks of it.

Fortescue Metals Group Limited (ASX: FMG) dropped 5.7% to $2.00. The world's fourth-largest iron ore miner slumped as iron ore futures trading suggests another big fall in the spot iron ore price tonight. Already trading at or possibly below its break-even levels, Fortescue may well be forced to sell off assets, wholly or in part, to ensure the company survives an extended period of low iron ore prices.

The post 4 stocks dumped on the ASX today appeared first on The Motley Fool Australia.