JBH and CTD are both correlated to discretionary spending, with the path of local interest rates an important denominator in this equation.
JBH – we have been stalking JBH for the last few months, looking to buy the quality retailer under $59, less than 2% away.
CTD – has disappointed over recent months after being dumped in February following a big miss with its 1H24 result – we bought post the result, but the stocks failed to bounce amid some concern building around their UK Bridging & Accommodation services contract (housing Asylum Seekers) as the UK heads towards an election i.e. it’s very much a political issue.
- While we are bullish on bonds, which should in theory create a tailwind for both CTD and JBH, we are mindful of the issues playing out at the stock level – MM is long CTD in our Active Growth Portfolio.
- We are looking closely at JB Hi-Fi (JBH) as an outright buy or switch option.
MM remains cautiously long and bullish on CTD
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