Thoughts on Aristocrat (ALL) and National Storage (NSR)
Hi MM, Do you have any thoughts on Aristocrat (ALL) and National Storage (NSR) both of which have dropped significantly in the last month or so? Cheers, Mick.
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Answer
Hi Mick,
Two very different stocks that have indeed succumbed to recent selling pressure, our thoughts are below:
Aristocrat (ALL) $39.85 – the gaming stock has fallen over 15% from its March high, slightly underperforming the US S&P500 Casino & Gaming Index but ALL also gets tarnished with the tech brush which has been a negative influence recently as yields push higher. Overall we like ALL around $40 but investors must be aware that it confesses its sins in May – results have been a coin toss over recent periods.
National Storage REIT (NSR) $2.24 – the storage REIT has fallen over 11% from its March high, not too far out of kilter with the Real Estate Sector which has struggled as the markets starts to accept interest rates will be higher for longer. At MM we believe bonds will ultimately rally, yields fall, through 2024/5 hence we like NSR into its current pullback – MM is long NSR in our Active Growth Portfolio.
