Market Matters Q&A

The Markets Strong!

Not a question but an observation. The morning of the Trump tariff news, I was about to leave the house for a 2 week holiday. My portfolio was all red so knowing that I could not trade while away I sold half of my portfolio during the next hour. On return I found that if I had done nothing I would have been 0.2% better off!

Nick

AIC Mines Ltd (A1M)

Hi As shareholders of AIC, have you considered what the effect the potential closure of Glencore’s copper concentrator in Queensland will have on AIC. Thank you.

Hylton

Perpetual (PPT) and Magellan (MFG)

Hi James,
Given the compulsory Super Contribution SG Rate increases to 12.0% July 1, 25 and Australias fascination with simplified, (easy) ETF’index passive investment, this has created a giant ponzi scheme in my view for certain sectors. Witness the crazy otherwise unjustified rise in the CBA Share Price. ETF passive funds must continue to BUY the index and with the compounding effect of compulsory Super @ 12.0%, on everyone employed, –this has distorted the local Market.

Assuming I am correct, what/when if ever do you see Managed Funds like Perpetual and Magellan with continuing FUM outflows presumably to ETF’s, recovering to previous levels. I note Macqaurie Bank has sold it’s international equities, fixed income and multi-asset investments to Nomura last week.

• Is the Managed Managed Funds business model dead?

I would appreciate your valued views.

Richard

Net debt and Fortescue (FMG)

Hello MM Team,
Please assist me with my ignorance! I have read in your report about FMG:
“Cash balance at $US3.3 billion, net debt at $US2.1 billion “. I am not sure, what the “net debt” actually is. Net of what?
Does this mean:
• they would have $US3.3 billion left, after paying off their US$2.1 billion debt, or
• they have US$5.4 but they have a debt to pay, or
• their real cash position is US$1.2 billion ($3.1-$2.1)?
Many thanks,
John

John

Thoughts on James Hardie (JHX) and Uranium ETF (URNM)

Hi James and Team
Your current view on James Hardie and how long u think before it might recover back to $50+.
Would you recommend the URNM ETF at current prices to get a wide spread of uranium exposure as opposed to adding to existing PDN and BOE holdings.
regards
Debbie

Debbie

TRUMPENOMICS CONTAGION

I am not a fan – as a person, a politician, a businessman, a Statesman or an economist – he fails. He is wrecking the US economy, of that there is no doubt. This nonsense will be contagious. The question is how bad and for how long? I’m too old and cranky to wait out another global recession, especially an unnecessary one. Care to comment?

David

Your thoughts on Inghams (ING) and PEXA Group (PXA)

Dear team,

A few days ago you suggested ING as a possible income stock with some upside. It looks pretty good , but, I have some concerns. #1. is that it appears to have a very high debt to equity ratio. This is not appealing at any time. However, during a time of possible recession, it can mean catastrophe. #2. is that it is highly dependent on Woolworths and that Woolies is seeking to diversify ( which probably means ‘screw’) it’s poultry suppliers. Your thoughts on these issues would be welcome.

I am a big PXA fan. I already own some PEX shares and they are underwater. You have them in your emerging companies portfolio as a moderate risk and a medium to long horizon. At last they have UK approval and may move into a huge new market with proportionate opportunities. The price has jumped up accordingly. Do you still see it as an excellent opportunity?

Thank you for your superb work. Keep on keeping on.
Paul

paul

Recent weakness in share prices, does this present BUY opportunity?

Weakness in share price, does this present BUY opportunity for Flight Centre travel group Ltd, Breville Group Ltd, Audinate (AD8), Reece? Thanks

Kim

Historic PE Ratio Graphs

To the MM team,

Firstly congratulations on the recent performance of your Growth Portfolio. Looks like things have turned around nicely.

My question relates to the PE graphs you often refer to in your reports. My software only gives financial year end or current PE numbers.

What package do you use or can you recommend something.

It doesnt look like I can get this info from the finance section of your MM web site.

Regards,

Charles

Charles

Regal Partners (RPL) performance

Hi James,
As always, thank you for the great work you all do at MM. I am interested in MM’s current view on Regal Partners.

Thank you,

Ian

Ian