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Is it time to take tweak some positions?

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Is it time to take tweak some positions?

Hi James & Team, Enjoying the content, insights & daily updates. I have fortunately weathered the recent market downturn pretty well having been overweight energy & gold & underweight tech (although I have been hurt by PBH). You have been mentioning of late to sell on strength, but I have a few stock specific questions as I am considering some changes to my portfolio positioning . . . WPL - Obviously a beneficiary of oil & gas price strength & a nice increase in dividend plus sadly Russia/Ukraine tension escalation. Ex-dividend, would it be prudent to sell & invest in a tech laggard (ideas below)? Or do you think there is continued upside for WPL with the coming BHP merger & continued dividend growth due to the elevated oil price? Having siad that, I am very conscious the share price will come off if oil drops (similar to Iron Ore last year?). What would your price target be to sell out & say thank you you very much without being greedy? I can't help but notice so many 52 weeks lows in numerous stocks I have had on my watchlist for 12 months. Where would you rate the following to take a position now? XRO - I like this quality scalable company, especially as it now under $100 & approaching pre-covid levels. I think there is upside over the next 12 months, but do you think it could drop below $90 in March with a possible US 50bps hike or is this already getting 'priced in'? TYR - Took a beating the last few days. I have owned following the terminal outage issues & short seller report last year, but exited at higher levels. I almost put an order in this week, but read profitability has been pushed out? Surely undervalued at current levels? I also keep looking at NTO & ZIP! Any price targets for entry points would be much appreciated. With thanks, Bernie


Hi Bernie,

A large question there with a number of stocks in the puzzle hence I have distilled out our thoughts on a couple:

Woodside (WPL) – we believe its time to start reducing exposure to oil stocks with the underlying commodity reaching our target area courtesy of problems in the Ukraine.

Xero (XRO) – we added to our XRO position last week believing quality tech stocks are oversold and due a decent recovery. Sub $100 is attractive.

As for TYR, Z1P and NTO. These are high risk stocks that we hold in the Emerging Companies Portfolio so it really comes down to your risk profile. I have been a buyer of Tyro (TYR) this week for myself and some clients that have a high tolerance for risk. We have also added to Microsoft (MSFT US) this week.



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Xero (XRO)
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