Market Matters Q&A

Question asked 25/11/2023

Is WOW entering the buy zone?

Hello MM team,

Thank you for all the answers to my previous questions. It is helpful!

I have been watching with interest the fall in Woolworth’s share price (~14% ) since its peak in June. I was reading the stock report available in the MM portal and according to it WOW’s forward P/E is at a 15% discount relative to the 5 year average. But it is still expensive (14% premium) relative to its 5 year average trailing P/E.

Immigration should be putting a floor to revenue growth, and I would imagine many Australians will be going to Big W instead of DJs or Myer to do their Christmas shopping this year. Increased operating costs (lower margins) is perhaps the biggest risk. Is WOW entering the buy zone?

Thanks,
Angela

Angela

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Question asked 25/11/2023

Do you like Nick Scali (NCK) and retail into 2024?

Hi guys
I noticed that Anthony Scali just sold a large chunk of his NCK shares to me this is a red flag
Also your thoughts on the retail sector like hvn uni jbh and pmv which i notice you still have in your emerging companies portfolio
Do you think these companies will struggle even further due to another interest rate rise
Thanks
Tony

Tony

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Question asked 25/11/2023

Holdings MM is considering adding to into weakness

Hi,

Regarding the Growth portfolio, quoting from the Weds morning MM report, “holdings we are considering adding to into weakness, similar to LLC last week. Cash is just the issue!”.

Just wondering which stocks MM is considering. And are there stocks in the other portfolios that you would currently view the same way? i.e. top up if you had more cash.

Thanks for your great work! Cheers, Nick

Nick

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Question asked 25/11/2023

What are your Santa Rally Expectations?

Hi guys, just a quick one today.
What do you think could be a realistic Santa rally.
Looking across a few indexes we can see that the U.S. has had a really good rally lately and pretty much all pushing their highs; likewise, Euro indexes, even through Asia.
The U.K and ASX and still crawling around on the ground being only approx. 4% from their lows. The CAC has seemed to run well, and although we are similar with the FTSE, I feel we are lagging behind.
I know we are still having inflation issues and not looking as good as other places, but with that, businesses are still earning. Even with a 3% rally, we’d only be back to where we were a few months ago.
Regards,
Simon

Simon

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Question asked 25/11/2023

Membership and portfolios

Does a member have access to the portfolios? What brokerage is charged on portfolio trades?
Are there any other fees on portfolios?

james

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Question asked 25/11/2023

NMT Capital Raise

Dear MM Team,

Having just happily renewed my membership, I would be interested to have your view on the Neometals non-renounceable entitlement offer to existing holders (of which I am) at a 25% discount to last traded price? This is their first raise in 11 years.

I have held & watched as the shared price has gradually significantly declined & I am reluctant to take part given their current balance sheet, quarterly cash outflows and currently no profit. Saying this I purchased with a view around their technology for a future growing EV economy.

Do you think it would be prudent to hold, sell or ‘top-up’ given the highly speculative nature of this company in the hope of a future greener world?

As ever, hindsight is wonderful & I wish I’d taken a profit at higher levels or closed my position entirely.

Continue the good work & insights.

Thanks, Bernie

Bernie

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Question asked 25/11/2023

BUB & PPS – Value Propositions?

Both entities had a change of management in recent times, and also a dive in their share price this week for different reasons. Do you think they are valued propositions and do you believe the strategies are sound, and that the current management has the capability to execute those strategies. Love to hear your thoughts.

Michael

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Question asked 24/11/2023

Thoughts towards Austal (ASB)

Hi James and Team
What is your view on Austal after it announced a deal with the Australian Government as a strategic partner in WA and picking up 2 new orders at an acquisition cost of $157m. Austal finished at $1.93 ( +3.49%) reaching a high 0f $2.05. Will the market re-rate ASB?
regards
Debbie

Debbie

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Question asked 24/11/2023

Where would you enter CNI?

Dear MM Team,

If looking to initiate a position in CNI which you hold, following the recent bounce off it’s lows, do you see further upside if bonds yields stabilize or decline over the next 12 months? A number of the real estate stocks have recently bounced off their lows but do you think the lows will be re-tested again for a better entry point?

What would be your longer term price target for CNI whilst collecting what appears to be a healthy dividend yield along the way?

Thank you, Bernie

Bernie

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Question asked 24/11/2023

Thoughts on Tabcorp (TAH) after its sharp decline

Hi James et.al,
I appreciate that you have not been overly keen on TAB corp (TAH) for some time now, but with it currently sitting down around 0.75c appreciate your current thinking?
Cheers,
Jeff

Jeff

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