29/06/2022 09:22

Flagship Growth Portfolio

The MM Flagship Growth Portfolio rallied +4.52% last week outperforming the market which gained +3.68%, our cash position remains at 1%. The tech stocks dominated the gains with HUB24 (HUB) +11.9%, Altium (ALU) +11.2% and Xero (XRO) +9.4% all contributing to the portfolio’s outperformance while Newcrest (NCM) -5.8% and Qantas (QAN) -0.2% were the only stocks which failed to advance.

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23/06/2022 09:08

Qantas Airways Ltd (QAN) $4.50

QAN is experiencing a particularly tough June due to weak consumer fears combined with rising fuel costs. Similar to the previous 3 stocks we’ve looked at today a meaningful recovery is unlikely until central banks regain investors’ confidence hence MM is considering switching our QAN holding in our Flagship Growth Portfolio.

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17/06/2022 09:58

Qantas Airways Ltd (QAN) $4.52

QAN has endured an awful fortnight as stocks associated with discretionary spending have been hammered while being a large fuel consumer isn’t helping – it’s the combination of these 2 factors that are concerning us with regards to QAN and we are considering alternative exposure for our MM Growth Portfolio. Everybody was ready and able to travel post-COVID and suddenly many people I speak to are considering far...

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15/06/2022 09:26

Flagship Growth Portfolio

The MM Flagship Growth Portfolio slipped -4.4% last week versus a market that fell -5.8%, while our cash position remains at 1%. The positive relative performance last week was aided by ResMed (RMD) +2.7%, Xero (XRO) +2.1% and Aristocrat (ALL) +2.1% while on the other side of the ledger we saw Bank of Queensland (BOQ) -11.3%, Commonwealth Bank (CBA) -10.6% and Qantas (QAN) -9.2% all weigh.

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10/06/2022 09:15

Qantas Airways Ltd (QAN) $5.21

QAN was recently added to UBS’s best stock ideas list with the belief that COVID induced capital disruption is almost in the rear view mirror with a return to free cash flow into the next FY. Arguably most importantly QAN trades at a ~10% discount to global airlines which MM doesn’t believe is warranted although with the cost of living soaring in Australia and a new Labor government the unions might become an issue moving forward.

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20/05/2022 09:26

Qantas Airways Ltd (QAN) $5.46

The iconic Australian airline has been grinding higher post COVID although it keeps falling short of our +$6 target area. This month the national carrier launched a takeover of Alliance Aviation in a scrip deal for over $900mn, we like this move which should immediately be earnings accretive but its had a limited impact on the share price. The company has a strong balance sheet and has done a very good job...

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05/05/2022 17:08

Qantas (QAN) $5.65

QAN -0.35%: the national carrier announced the acquisition of Alliance Aviation (AQZ) in a scrip deal for an enterprise value of $919.2m. Alliance runs a fleet of 70 aircraft servicing domestic charter flights largely servicing FIFO mining workers, also operating the Qantas Link services with Qantas their single biggest client. The deal is expected to be EPS accretive from day 1 pre-synergies while Qantas will look to reduce...

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04/05/2022 09:30

Flagship Growth Portfolio

The MM Flagship Growth Portfolio slipped -1.1% last week while our cash position sits at 2%. The index itself closed marginally lower with our performance helped by Bank of Queensland (BOQ) +6.5%, Qantas (QAN) +4.7% and BHP Group (BHP) +4.4% but meaningful dips in ResMed (RMD) -9.5% and Goodman Group (GMG) -6.8% led to the slight underperformance.

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02/05/2022 17:07

Qantas (QAN) $5.76

QAN +2.86%: A strong session today for the flying Kangaroo as they officially moved from defence into offence ordering a suite of new planes while also saying that 2H22 EBITDA would be $500m, a long way ahead of the market expectations for $200m. Debt levels have also fallen by around $1bn and while they’ll still lose around $1.3bn in FY22, they should return to profitability earlier than expected in FY23. QAN now has a..

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27/04/2022 09:17

Flagship Growth Portfolio

The MM Growth Portfolio fell -2.02% last week which is never nice to see but it noticeably outperformed the market which fell -3.3% i.e. it paid off to be underweight the resources. Cash now sits at 2%.  We again saw some clear sector rotation with the defensives improving, in our portfolio we saw BHP Group (BHP) -14.1%, HUB24 (HUB) -8.1% and Newcrest (NCM) -4.8% while in the winner’s enclosure we saw Virgin Money (VUK) +4.8%, Goodman Group (GMG) +4.3% and Qantas (QAN) +2.8%.

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