Yesterday saw MM sell out of Virgin Money (VUK) and increase our holdings in Macquarie Group (MQG) and TPG Telecom (TPG) which in our opinion is a move up both the quality and defensive curve. However, we did consider a couple of other stocks on the buy-side hence today felt like an ideal time to update our thoughts towards them:
- MM sold out of OZL in March around $26.40, the stocks back on our radar after falling 16% with the $20-22 level we have discussed previously now back in play.
- However due to the market’s crowded position towards commodities and our $US400/lb target for copper we decided to remain patient.
Overall, we feel a dip under $21 still feels likely i.e. another 5% lower is not a big call considering both the market and stocks’ current downside momentum.