Santos (STO)

11/03/2022 09:19

Santos Ltd (STO) $7.59

As most subscribers know MM took profit on our STO position last week, a few days early in hindsight, but we followed our plan which was helped by the panic appreciation in energy prices following Russia’s invasion of the Ukraine. Technically we wouldn’t be surprised to see the oil & gas producer break well under $7, especially as they merge Oil Search operations into their business – MM is likely to start accumulating Woodside if / when we believe...

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09/03/2022 09:23

Flagship Growth Portfolio

The MM Growth Portfolio slipped -0.16% outperforming the market which fell around 1.4%. The solid (relative) week was helped by Whitehaven Coal (WHC) +20.4%, Newcrest (NCM) +9.3% and Santos (STO) +9% while the laggards were Virgin Money (VUK) -16.7%, Qantas (QAN) -12.4% and Aristocrat (ALL) -9.9%.

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09/03/2022 09:15

Santos Ltd (STO) $7.86

An interesting market characteristic which often raises its head in financial markets is how “smart” equities can be e.g. when it comes to resources the stocks regularly form a high or low well before the underlying related commodities. Back in 2019 when crude oil traded into negative territory, which is even harder to comprehend than negative bond yields, STO turned higher weeks before oil - if we are correct the same may be true on the downside.

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08/03/2022 09:40

Putin sends commodity prices into orbit, are there switches afoot?

The relative volatility under the hood of the ASX is as high as I can recall with the geopolitical backdrop driving up commodity prices and the related stocks while most names associated with growth have come under ongoing significant pressure. MM called these moves in the resources stocks at the start of the year and portfolios were skewed accordingly, the question we again ask is should we be migrating further down the risk curve i.e. have things simply traveled too far too fast.

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02/03/2022 10:53

Flagship Growth Portfolio – Amendments

We are taking profits on Oil & Gold exposures

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02/03/2022 09:26

Santos Ltd (STO) $7.26

STO has been a frustrating position considering how other energy stocks have performed during oils phenomenal advance hence we’re considering taking a more than 20% profit over the coming days as oil advance in our opinion starts to feel extended. Santos has a large funding task ahead of it following their acquisition of Oil Search (OSH) and this will revolve around asset sales – not a bad time to be doing it, however not without some execution risk either.

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02/03/2022 09:25

Flagship Growth Portfolio

The MM Growth Portfolio was up  +1.4% last week while the market fell -0.4% inclusive of dividends, performance was aided by strong moves in HUB24 (HUB) +13.9%, Whitehaven Coal (WHC) +12% and Altium (ALU) +6.2% while the major performance drags were Appen (APX) -23.2% and Virgin Money (VUK) -8.6%. For the month of February the portfolio was up +2.10%, largely inline with the market. Interestingly enough, Aussie stocks...

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18/02/2022 09:16

Woodside Petroleum (WPL) & Santos (STO)

Stock markets can be unforgiving beasts and earlier in the week we saw STO deliver a result that was a touch ‘light on’ while yesterday WPL produced a very strong set of numbers, the net result has seen WPL start to address some its underperformance post COVID and most importantly we feel there’s more left in the tank. WPL’s result was very strong comprehensively beating consensus...

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16/02/2022 17:20

Santos (STO) $7.19

STO -2.84%: The stock was hit today following their FY21 results that were slightly light on in terms of earnings while a weaker oil price overnight didn’t help.  Underlying profit for the year of $946m was a sharp increase on FY20 profit of $337.8m and largely inline with the $950m expected by the market. FY22 will be a big year for Santos following the recent..

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15/02/2022 09:10

Santos Ltd (STO) $7.72

MM has been frustrated at times by the local Energy Sector which unlike its US peers has failed to embrace the strong rally by crude oil. However, its slowly coming to the party and our $8 target for STO is approaching i.e. its finally less than 4% away. We plan to take profit if / when the stock reaches this area. We own STO in our Flagship Growth Portfolio.

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