21/06/2022 09:29

South32 Ltd (S32) $4.06

Diversified miner S32 has corrected 27% from its November high pretty much in line with the pullback in tech stocks – no association there! Similar to OZL we like S32 into current weakness but any buyer is likely to be actioned through a scaled-in buying approach.

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01/06/2022 09:37

South32 Ltd (S32) $5.00

Diversified miner S32 now has some clear exposure to “green metals” including silver (solar panels), copper and nickel with the last 2 essential in electric motors and batteries. The company might not be pure lithium or nickel play like a few alternatives in the ASX but it does generate solid profits and pay an enticing fully franked dividend making it a viable green alternative for fund managers with flexible mandates.

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18/05/2022 09:31

Flagship Growth Portfolio

The MM Flagship Growth Portfolio slipped -0.49% last week while our cash position has now risen slightly to 4%. Our performance was aided by TPG Telecom (TPG) +4% and Commonwealth Bank (CBA) +3.4% while CSR Ltd (CSR) -9.7% and Altium (ALU) -7.7% dragged on the portfolio i.e. our defensives remained the backbone through this uncertain period.

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27/04/2022 09:10

South32 Ltd (S32) $4.46

Diversified miner S32 has suddenly corrected over 20% from its early March $5.44 high, only a few weeks after many analysts were calling the stock to $7. Investors should never forget that the resources stocks are cyclical in nature where earnings are largely dictated by the price of the underlying commodities which it produces i.e. what looks great today for S32 may not be the case next month if the likes of coal, nickel and zinc prices fall.

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29/03/2022 09:14

South32 Ltd (S32) $5.20

S32 has enjoyed a strong few years and the diversified miner does appear to have more in the tank but volatility is increasing which is a typical characteristic of a market whose trend is maturing fast, we believe the stocks set to consolidate the last 2-years gains between $4.50 and $5.50 suggesting the risk/reward doesn’t favour the buyers at this stage of the cycle.

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10/02/2022 09:25

South32 (S32) Ltd $4.415

S32 popped to fresh all-time highs yesterday implying there’s more upside in many of the resources stocks especially when we consider the stocks strength following the company’s recent downgrade to its manganese production guidance, plus there are concerns around its coal divisions output. MM aren’t buying / chasing pops in 2022 but we do believe most Australian miners have further upside.

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07/12/2021 09:46

South32 (S32) $3.70

Peter O’Connor’s pick was South32 (S32) for the best Australian miner in 2022 believing its no longer the cast off from BHP plus importantly it doesn’t produce iron ore which Peter believes will struggle over the years to come. Importantly for many in today’s environment its product mix is very green focused for a miner including aluminium, nickel, copper. As a...

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24/09/2021 09:28

South32 (S32) $3.42

Similar to WHC South32 (S32) is poised to make fresh 2-year highs as it relishes the rising coal price although this is a far more diversified miner. One option for MM is to reconsider maintaining a more diluted coal exposure through S32, a stock that has only doubled since its 2020 low i.e. a lower beta position. At this stage this is one idea we are contemplating...

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09/09/2021 09:34

South32 (S32) $3.36

The market has re-rated S32 in similar fashion to AWC in the last fortnight, potentially it’s been the beneficiary of monies leaving the iron ore names. We like this diversified miner and if it can hold onto recent gains in coming weeks the risk / reward will look attractive.

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07/09/2021 17:07

4 trade ideas from Peter O’Connor

Peter O’Connor, our resource Analyst at Shaw sums up his current picks in the resource space this morning and I’ve included key highlights below. We own Whitehaven Coal (WHC)  & Newcrest (NCM) in the Growth Portfolio +  have had S32 on the radar for a while, although we now prefer to buy the consolidation of the ~$3 breakout. We also own Coronado Coal...

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