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Thoughts on the Banks & CXL

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    Thoughts on the Banks & CXL

    Hi James & Team I have read your views on the Banking sector - " MM is happy to hold banks in our Growth and Income Portfolios but we are comfortable being underweight, another 5-10% downside driven by the current negative sentiment would start to improve the appeal of the sector overall." If you are a long-term holder of the Banks more towards being overweight - And have been slow to react. Do you ride this out until the negative sentiment turns more positive? Do you see the current price action as overdone? CXL - The one that got away!! Never pushed the buy button. Calix has just dropped below $7 - Is this a buying opportunity? regards Debbie

    Answer

    Hi Debbie,

    In the Flagship Growth Portfolio we remain underweight the banks with  a 5% exposure to CBA within the “Big 4” and 17% if we include our Bank of Queensland (BOQ) and Macquarie Group (MQG) holdings.  Our plan is to consider National bank (NAB) around the $26 area, or 6-8% lower. We are not concerned about banks at this juncture,  they remain very well capitalized however you’re positioning is not something we can comment on.

    As for Calix (CXL), we think this has a great future and the recent pullback we view as a buying opportunity, but given it’s volatile nature, leave room to accumulate. It’s a difficult company to value.

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    Calix (CXL)
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