MM keen to buy into October weakness
Hi MM, Saw your comment about being keen to buy into any October weakness. What income stocks are you thinking of as potential buys should the opportunity arise? Regards Peter
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Answer
Hi Peter,
We have positioned ourselves with some cash/flexibility to buy if the market experiences traditional October volatility but we’re conscious that global equities remain strong and the “risk” remains on the upside, with the bullish trend.
At this stage Amcor PLC (AMC) is the lone stock on our Incomes Portfolios Hitlist after its weakness over recent years has taken its Est. yield up over the coming 12-months above 6%. However, we will be monitoring the company operationally, following the acquisition by Amcor (AMC) of Berry Global for ~$US8.4bn – it’s a turnaround story hence position size maybe on the lighter side for the income portfolio.
- We like AMC in the $12 region but are conscious the market is becoming increasingly concerned that a decline in packaging volumes is a structural trend.
Narrowing down other stocks we already own, and would be happy to buy here, or into further weakness for income are: AGL, CNI, DBI, DDR, SIQ & NHC.
