Your view on various stocks

Hi Paul,

Five questions here rolled into one, we’ve touched on each briefly & separately:

• We continue to like the medium-term outlook for coal, liking WHC for growth and NHC for yield. The reason why WHC is preferred though, is its higher exposure to metallurgical coal, used in steel making, relative to NHC which has more thermal coal, used in power generation. The outlook for met coal is better over time as it’s critical in the energy transition.
• Yes, we can see CBA correcting and its why we haven’t increased our exposure across the MM portfolios, but such a move is likely to be shallower than many expect. It’s very debatable where or not CBA is a ‘growth’ investment, a discussion we have had multiple times internally.
• We can see drone-detection gathering momentum on a number of levels and DRO as a such looks capable of advancing above $1.50 int Christmas.
• Infrastructure business DBI pays a sustainable 6.6% part-franked yield in 4 quarterly instalments that will grow at ~3-4% per annum making its an ideal candidate for our income portfolio. We like it $3.20 and should have pressed the button last week…
• We still like TWE as a business and its recent FY25 guidance, cash conversion and outlook commentary were solid, however, the outlook relies on a stabilisation in the non-luxury portfolios, which is worrying the market, and we are also frustrated with the position’s performance.  We have this marked as a potential funding vehicle.