Your general thoughts please

Hi Bill,

A diverse bunch of stocks and sectors here but all interesting in their own way:

• Yancoal (YAL) demonstrated in no uncertain fashion last year that it’s a Chinese coal company listed on the ASX in August when it overrode the company’s constitution to withhold its dividend, blindsiding plenty of local shareholders in the process. We believe YAL could pull this stunt again and as such will not be re-rated value wise as the reliable strong yielding stock of the past, hence it’s not for us.
• We actually like both NXT and GMG believing the “picks & shovels” evolution of AI which includes data centres has further to run – Nvidia gave a positive read through on the subject with its results on Thursday morning. However, this a capital intensive rapidly evolving business and further raises, following GMG’s $4bn one last week seem likely hence we are buyers of pullbacks, as opposed to chasers of strength.
• Myer (MYR) has been soft in recent weeks and we’ve discussed it a few times in Q&A reports this year. Also, parts of the retail sector has struggled in the first two months of 2025 with JB Hi-Fi (JBH), Super Retail (SUL) and Premier Investments (PMV) all down more than 5% year-to-date.  We do think ‘new MYR’ under new leadership will be better than the old one.

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Yancoal Australia (LTD) YAL

LAST UPDATED 27/02/2025 14:47

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Yancoal Australia (LTD) YAL

LAST UPDATED 27/02/2025 14:47