CIMIC Group (CIM) & Adore Beauty Group (ABY)
Hi James, Interesting times again and not totally unexpected. Still interested on views on ABY (getting hammered) and CIM (appears to be finding a base). Cheers Mark
The Latest Q&A
Answer
Hi Mark,
Firstly I agree with you that CIM is finding a base after a torturous few years. As the dust settles operationally for CIM I like the risk / reward below $20 – MM already holds NRW and MND in the sector so are unlikely to act on this particular view unless we switch.
In terms of Adore Beauty (ABY) you are absolutely right, the update on Thursday saw the stock down ~20%. The wording of the trading update was poor and required a clarification on Friday, the stock initially rallied on that but sold off late in the day.
This has been a stock we have gotten completely wrong. I have attached our Research from Shaw – CR_DY_ABY – which paints a more positive picture than the current trading action. I am very conscious that the firm was involved in the listing and may have rose colored glasses on here, however I’ve personally taken a keen interest in this company and I believe from an operational standpoint they’re doing a good job executing on their stated plans. For now we’re holding, we think the market is wrong in the short term but ultimately the weight of money has been against our view.
