Calix update & a comment on SRG Global

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

Ask a question

The Latest Q&A

Question asked 19/02/2022

Calix update & a comment on SRG Global

Hi James and the team, Love reading all your insights. I have learnt so much. Bearing in mind that interest rates are on the up, would a company like Calix have a stock price decrease in response to these factors? SRG Global. What is the status with this company. Is it a buy do you think? Thanks Kim

Answer

Hi Kim,

All things being equal, higher rates are a negative for Calix (CXL).

In terms of SRG, we sold it in January to free up some cash for other positions. That said, the company is continuing to do well, last week announcing a large $150mn / 5 year Mining Service contract with the SIMEC Mining Group (OneSteel Manufacturing) and is to provide specialist Drill and Blast services at their Iron Ore operations in South Australia. SRG’s last reported Work in Hand was $1bn, with an identified $6bn opportunity pipeline. SRG report 1H22 Results on the 22^nd February.

chart

SRG Global (SRG)

LAST UPDATED 19/02/2022 09:16

Latest Reports

Morning report 24/04/2024

Portfolio Positioning: Bonds fell, dragging stocks along for the ride, both are now basing in our opinion

Bond markets have struggled over recent weeks as inflation appeared increasingly “sticky,” but it hardly registers on the chart compared to their weakness through 2021/2 and mid-2023. We believe the local credit markets have come back to realistic levels as the RBA awaits further economic data to deliver clarity on the underlying strength and direction of the local economy. Traders have gone from being far too optimistic on rate cuts into Christmas to becoming almost pessimistic; the US futures markets have gone from pricing in three cuts to 1.77 cuts, or one definitely, and probably two.

Afternoon report 23/04/2024

The Match Out: Gold and Oil left behind again, Equities tick higher

Investors continued the 180-degree about-face from last week's sentiment, happy to take on risk for the second consecutive day to start this week seeing the ASX200 through a 200pt gain from Friday’s panic lows early in today’s session. Tech was the standout as US 2yr yields retreated (marginally) from the spike above 5% last week while Healthcare and Financials also joined in the rebound. Energy and Gold were the main areas finding it tough again today, for the same geopolitical reasons as Monday’s session.