Scrap metal business SGM is clearly not a classic miner but it resides in the Australian Materials Sector and it’s been very correlated to other resource plays through 2020/21. The company delivered a strong earnings upgrade this week which sent the shares to a fresh 52-week high. However the pullback over the last 48-hours suggests some investors are saying we are in “as good as it gets” territory. We really like SGM and back around $15 the risk/reward again becomes compelling.
MM likes SGM ~10% lower
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