APA has had a strong run, bid up recently on increasing flows into defensive assets. While we continue to like the stock, we now view it as stretched from a valuation/yield perspective, with better opportunities elsewhere on a risk/reward basis.
MM is selling APA in the Active Income Portfolio, taking profit around $11.50
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We are buying Eagers for a combination of yield and some growth, with the stock now trading on a reasonable valuation. While the 4% fully franked forecast yield is solid rather than spectacular, growth in earnings will in time flow through to higher income.
MM is buying APE in the Active Income Portfolio, allocating 4% around $19
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We are now adding RIO to the Income Portfolio, having added it to the Growth Portfolio on Friday. The position is replacing Fortescue (FMG). We view RIO as a safer option within the space for now.
MM is buying RIO in the Active Income Portfolio, allocating 4% around $150
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We are selling Fortescue today as negotiations with China drag on, impacting earnings and potentially the dividend. We see better risk/reward switching to RIO.
MM is selling FMG in the Active Income Portfolio, taking a loss around $14.50
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