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AST vs AGL

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

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AST vs AGL

“Hi James and Team, A question for MM Monday Report if I may. We are retired income-focused investors. We have a holding in AGL, and are considering cutting the position given the commentary regarding AGL's problems, while we have a manageable loss. We are thinking of a switch to Ausnet as we want to maintain diversity in our holdings. What is MM's view on Ausnet? Does MM feel the Utilities sector worth staying in or should we move those funds out to another sector entirely at this stage? Many thanks and keep up the good work.” – Karl B.

Answer

Morning Karl,

MM definitely prefers energy service provider Ausnet (AST) to AGL where at this stage we can see no clear light at the end of the tunnel. However, AST is negatively influenced by rising bond yields and we do prefer the Banks & Resources over the Utilities for both yield and potential share price appreciation through 2021 / 22.

AST
MM prefers AST to AGL
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AusNet Services (AST)
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