Viewpoint: Bullish
ANZ +0.44%: Was up today following their 1H22 result that was ahead of expectations, although there was some write back of bad debts that helped the outcome. Cash profit from continuing operations $3.11 billion was +4.1% y/y versus consensus expectations of $2.89 billion plus the 2H is expected to improve as rising interest rates start to grow net interest margins again, which fell to 1.58%. The interim dividend of…
MM bought the ASX traded ETF too early but we still feel NDQ looks poised for a solid bounce. We continue to target a quick 10-15% profit into a looming bounce – if we are correct of course!
Auto parts business Bapcor presented at the Macquarie Investor Conference yesterday with shares weaker on the day. The presentation came with no surprises which, in our view, should be more positive for the stock. They maintained guidance, and have done so now since the AGM in October despite a change in CEO. It also shows the business has returned to growth in the second half given the slow start to the year. Sales are up 3% for the 9 months to March, in line with consensus estimates.
The ASX200 fell -0.4% yesterday as the RBA hiked rates slightly more than expected to 0.35% but interestingly we saw the value stocks dip slightly while tech in particular enjoyed a strong session. However, interest rates have been destined to go higher for months and while yesterday’s move was more aggressive than most economists anticipated it was always a matter of when…
WOW +0.37%: Released a 3Q22 sales update today that was broadly positive with their important Aussie Supermarkets enjoying like for like (LFL) sales growth of +4.4% which was above market consensus of +2.4%. They now have 9.9% online penetration which is strong while they highlighted food inflation which is running at 2.7%. Trading momentum in Q4 remained solid…
US NASDAQ futures rallied +1.7 overnight as buyers finally surfaced to pick up stocks into weakness even ahead of the Feds anticipated largest rate hike in over 20-years. Encouragingly dip buyers emerged as US 10-year bonds traded around 3% as the interest rates start to feel like old news, or at least the 1st leg higher does. The shift away from “easy money” should continue to weigh on…
GMG was smacked over 7% yesterday as the integrated commercial and industrial property business continued to follow the negative sentiment in global tech sectors. However, while the stocks going through a tough time in 2022 due to its correlation to growth we believe this is a top quality business which can continue to grow over the coming years helped by its e-commerce and logistics exposure i.e. the long term key to a stocks performance.
ABB -28.06%: shares in the fastest growing telco were hit hard today after tightening guidance to the lower end for the full year. Connections were up 54k in the 3rd quarter to 549k, though a significant portion of that came from their white label offering which is expected to roll off in the 4th quarter. NBN CVC costs were higher than expected, as were promo discounting and higher customer service costs…
QAN +2.86%: A strong session today for the flying Kangaroo as they officially moved from defence into offence ordering a suite of new planes while also saying that 2H22 EBITDA would be $500m, a long way ahead of the market expectations for $200m. Debt levels have also fallen by around $1bn and while they’ll still lose around $1.3bn in FY22, they should return to profitability earlier than expected in FY23. QAN now has a..
The greenback has exploded to fresh 20-year highs against the Japanese Yen on the prospect of the Fed hiking interest rates more aggressively and higher than the BOJ which resonates with MM. The cross rate has come a long way in just 2-months and it might need a rest but fighting strong trends is historically the fast way to the poor house i.e. we feel traders should be long or out of the USDJPY.
