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Your views on Light & Wonder (LNW) and Technology One (TNE) please

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Question asked 31/01/2026

Your views on Light & Wonder (LNW) and Technology One (TNE) please

Hi James and team, Thank you for the informative Q&A edition last weekend. With tech stocks resuming their down trend this week, I would appreciate your views on the sector's outlook in the medium term please, specifically on LNW and TNE. On the winning side, would also appreciate your views on the scope for further upside for the resources sector and outlook for energy esp. oil and gas. Regards, Adel

Answer

Hi Adel,

Two stocks we have discussed a few times in recent weeks:

Technology One (TNE): we performed a deep dive in TNE earlier in the week Here, we like the stock and have it in our Hitlist, but it still feels heavy testing $25 on Friday hence we’ve remained on the sidelines for now.

Light & Wonder (LNW): we bought LNW in mid-December, alert Here, after performing a deep dive into the company Here. The stock spiked higher earlier in the month following the resolution of its court case with Aristocrat (ALL) before surrendering most of the gains as a wall of profit taking hit the stock.

We ultimately think LNW should be trading inline with Aristocrats earnings multiple. LNW trades on 17x while ALL trades above 20x, hence our preference for the former. We view it as a solid medium term growth stock, and still like it (and own it) at current levels.

In terms of further upside for the resources sector and outlook for energy esp. oil and gas we are bullish in the medium term as we covered in Fridays ETF report and have held the vast majority of our overweight exposure to the likes of BHP, SFR, PDN, but we do believe they are in need of a least a rest in the short term, before enjoying further upside.

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Light & Wonder Inc (LNW)

LAST UPDATED 30/01/2026 10:58

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Weekend report 31/01/2026

Weekend Q&A: Gold plunges the most since the GFC after Trump announces his Fed pick

The ASX 200 ended the short week up just +0.2%, but the volatility over the 4-days was more than many months! The energy and materials sectors were again the top performers, but Friday's savage 100-point reversal dented many of the previous high flyers, while the rate-sensitive consumer discretionary and tech sectors fought over the wooden spoon, again. This week is likely to be a very different market following the confirmed nomination of Kevin Warsh to be the next Federal Reserve Chair, taking over from Jerome Powell. Warsh is seen as more inclined than other finalists to guard against rising price pressures, a stance that would translate into monetary policy that is supportive of the US dollar. That saw the $US push up nearly 1% sending Gold & other commodities sharply lower. Gold experienced a top-to-bottom $US900/oz plunge overnight which will have the miners on the back foot on Monday,

Afternoon report 30/01/2026

The Match Out: Hot money flips out of resources as Gold pulls back, ASX +1.8% for the month

The ASX reversed earlier gains in the final session of the month, dragged lower by an accelerating sell-off in gold and other resource stocks as hot money headed for the exits. The rally in this part of the market has been impressive, however when stocks and commodities start to go parabolic, aggressive, short, sharp pullbacks become more likely, and we’ve certainly seen that play out today. Using BHP as the proxy for the sector, the stock hit a new all-time high above $52 early on, before reversing to close lower. Golds were hit harder with Newmont (NEM) trading at $190 yesterday before closing ~$173 today.