Market Matters Q&A

Will AR9’s DoD pilot turn into a full roll-out?

G’day team,

AR9 (archTIS) just landed two interesting deals – a 1,000-user pilot of NC Protect inside the U.S. DoD cloud plus a fresh UK defence contract. The share price has jumped (off multi-year lows), but I’m trying to sort substance from hype:

1. How much weight should we put on the DoD pilot? Do most pilots at this level lead to a full roll-out (say 150 k seats or more), or do plenty stall?

2. Knock-on effect: if AR9 does secure a large-scale DoD roll-out, does that materially smooth the path to NATO and other allied markets?

Appreciate your straight-shooting views

Michael

BROKER MOVES

Good Morning Gents,
You include Broker Moves in your Match Out reports. I find some of them to be quite surprising, to say the least. Do you know what their time horizon is for these recommendations?

David

DroneShield Ltd (DRO) and Navigator Global Investments (NGI)

What is your valuation for DRO & NGI? and are DRO & NGI still investable at present value? thanks Sidney

sidney

Worley Ltd (WOR)

Hi Shawn, do you have an updated view on Worley? They seem to have fallen over the past few months but all news seems to have been good. Thoughts?

Stewart

Web Travel Group Ltd (WEB)

Hi Market Matters
What’s your latest view on WEB?
Would you be investing in the travel space at the moment?
regards
Deb

Debbie

Thoughts in regard to Tariffs

Hi James & Team
Markets have been mainly focused on the Middle East conflict recently but what is the latest news in regards to Trumps Tariffs. When does the pause on Tariffs between the US & China expire? Is it 12th August? Do you expect an agreement between the US and China before this date? Also what is the US Tariff situation with the EU and the rest of the World? Was there a separate 90 day Tariff reprieve to 9th July? Is this impending tariff deadline priced into markets? How big a concern is Trumps trade & Tariff policies currently? Are Markets expecting agreements will be made?
regards
Debbie

Debbie

PWR Holdings (PWH)

PWH looks like a high quality business going through a rough patch. The share price has fallen significantly and the value proposition appears compelling. What do you think?

Cameron

Diversification – VanEck Emerging income Opportunities Active ETF (EBND)

Hi Guys,

Thanks for your continued helpful advice.

I’m reading Ray Dalio’s book “How Countries Go Broke”. He’s been talking about the rise of China, US debt etc, for several years now. Ray’s macro view of investing now, a time of changing world order, is “diversify well” and stick with the countries that get fundamentals right. Fundamentals like education, a strong national income and balance sheet, greater earnings vs spending, internal order, low risk of being at war, low risk of harmful acts of nature and those that benefit most from changes in technology.

Coincidentally, I recently participated in a Van Eck webinar promoting their ETF EBND. It invests in emerging market bonds and pays monthly.

I was surprised to discover that that recent years have seen Emerging Markets countries appear to fit many of the financial fundamentals Ray Dalio mentioned whereas Developed Markets have generally become a riskier, less attractive alternative because of high debt.

What do you think of this ETF? A good diversifier? Is it a contender for your income portfolio?

Cheers, Nick

Nick

Warrants

Hi Guys,

Thanks so much for your continuing constructive & informative responses to our queries. So I have a question on warrants which used to be an important part of investment plans but seem to be left behind in recent years.

Therefore, could you remind me of how warrants work, and whether they could have a place in a Growth portfolio.

In what circumstances are they useful and do you have any recommendations?

Many thanks
Glenn

Glenn

Thoughts on Amcor (AMC)

To the MM Team,

I have been watching AMC for some time and cant work out why it cant find much love in the investing world.

The ROE, eps growth, PE, PEG and dividend yield all look quite good. At its current price AMC seems to represent good value. The only negative I can see is the high gearing.

I would appreciate the MM view on this cyclical defensive stock.

Thanks,

Charles

Charles