ASX Leaders Nov 2015 – Not what you’d expect

There are two distinct groups of shares leading the ASX in November 2015:

Mid Cap shares (from the 51st largest company down to the 100th largest on the ASX); and
IT / Smart Services.

The first group, the Mid Caps, are 7% higher than the ASX Top 200 (XJO) in just the last six months. They’re also 18% higher over the last 18months.

The second group is without a general classification and is harder to ‘define’. These smart services are a mix of industrial, consumer discretionary and IT shares.

I define this group as providing non-physical solutions to mostly business and industry (less focused, but not excluding direct retail).

A great example of these smart services is Freelancer (FLN). FLN connect contractors and employers through an internet-based forum. A bit like Facebook meets Seek.com.

Once FLN was up and running with 5-10 users, think about how little effort was required to service thousands of users. This is a truly saleable business, and this type of business has been running rings around the rest of the ASX. Just look at their chart on asx.com to get an idea.

But there is a catch. Most of these smart services companies are small - very small. They are also rather illiquid (difficult to buy/sell).

Below is a list of the top shares from each group.