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

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    Results and Market Response

    Hi James, I am enjoying reading the morning and afternoon reports since I joined MM family a couple months ago. The Saturday report is very good as well. They provide good insights into the market and individual stocks. HUB and RWC reported this morning. HUB's result is better than last year but RWC is only on par. However, the market reaction is just the opposite. HUB went down but RWC went significantly up. It seems HUB has reached its short term peak and RWC must be approaching with the rise today. Is it time to take profit on both? Thanks in advance for your idea.

    Answer

    Hi Ambrose,

    That’s great to hear. We think we’re a lot different to many others out there, with real insights, real portfolios, real people who will stand by our service over the long term, through good times, and periods where it’s more challenging.

    To your question, the share price reaction in the short term is anchored to the result relative to the collectives’ expectations (which is what’s called consensus) rather than anchored to last year’s result, although, from a longer term perspective, seeing year on year improvements is important.

    • HUB: The concept that the winner (or winners) takes all in the platform space is clearly coming to fruition. HUB has not put a foot wrong executing on their strategy, and while its very expensive and priced for growth, they simply keep delivering. We are more inclined to buy pullbacks in HUB than sell strength.
    • RWC:  Still looks okay to us following a solid result. While the outlook for FY25 may still be quite tough, we think FY26 will be a better year as the benefits of lower rates filter through to more activity in construction and renovation.
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    HUB 24 (HUB)
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