Australian Investment Blog

WHAT MATTERED TODAY

A fairly quite Friday to end the week with the market opening flat before edging marginally higher throughout the session. Most stock across the MM Portfolios were higher today, NRW Holdings (NWH) up +8% after a very tough week for that holding while Ramsay healthcare (RHC) put on more than 2% today and is trading ~10% above its placement price. After a tough start to the week, the energy stocks fared better than the headlines would imply with the sector overall finishing down, but outperforming the broader market, Beach Energy (BPT) the standout today adding more than 4%.

Today the ASX 200 added 25pts /+0.49% to close at 5242 - Dow Futures are trading down -131pts/-0.56%

ASX 200 Chart

ASX 200 Chart

CATCHING MY EYE:

Sectors this week:

Stocks this week:

BROKER MOVES:

• Volpara Health Raised to Hold at Ord Minnett; PT A$1.47
• Australian Pharma Raised to Buy at Citi; PT A$1.15
• Evolution Cut to Neutral at Citi; PT A$5.05
• Carsales.com Raised to Outperform at Macquarie; PT A$15.30
• Alumina Cut to Neutral at Macquarie; PT A$1.50
• Imdex Cut to Hold at Canaccord; PT A$1
• A2 Milk Co Cut to Market-Weight at Wilsons; PT NZ$21.22
• Evolution Cut to Neutral at Credit Suisse; PT A$4.85
• Evolution Cut to Hold at Jefferies; PT A$5.10
• Carsales.com Raised to Overweight at JPMorgan; PT A$15.25
• Amcor GDRs Cut to Hold at Jefferies; PT A$13.10
• Insurance Australia Raised to Overweight at Morgan Stanley
• Alumina Raised to Outperform at Credit Suisse; PT A$1.80
• Carsales.com Raised to Buy at Jefferies; PT A$15.34
• McPherson's Raised to Buy at Shaw and Partners; PT A$3.12
• Australian Pharma Raised to Neutral at Credit Suisse; PT A$1.10
• MyState Raised to Buy at Bell Potter; PT A$4.50

OUR CALLS

International Equities Portfolio

The Trade Desk (TTD US) is a stock we’ve written a number of times about last year, and today we’re adding it to the portfolio. While it is well off the recent lows, we are targeting new highs for the stock and will initiate with a 4% weighting, which we can build on in the future. This is a stock brought to my attention by a client, and the growth pathway here is strong. As advertising moves from traditional media to online / streaming channels, TTD has as incredibly strong solution to take advantage of this tectonic change in advertising spend. We’ll write more about it in upcoming notes.

The Trade Desk (TTD US) Chart

Global ETF Portfolio:

Tonight, we’re going short volatility for our Global ETF Portfolio. Volatility spiked through this recent downturn and still remains elevated; this ETF will rise in value if volatility falls. While we have looked into this ETF, we’ve not actually traded it before. It has over $800m in this ETF and is listed in the US. Wish us luck.

Pro Short VIX Short Term Futures ETF Chart

Major Movers Today

Have a great night

James, Harry & the Market Matters Team

Disclosure

Market Matters may hold stocks mentioned in this report. Subscribers can view a full list of holdings on the website by clicking here. Positions are updated each Friday, or after the session when positions are traded.

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