Viewpoint: Bullish
US tech stocks rallied 1.7% overnight to retest their recent high with Apple Inc (AAPL US) leading the line advancing well over 2%. Our stance hasn’t changed, MM believes US tech saw a meaningful low late last week, following Russia’s invasion, with a bounce back above 15,000 our next target i.e. 5-7% higher.
BHP looks set to open above $49 this morning and a $50+ handle appears inevitable as the Resources Sector comes back into favour – the company paid a very attractive $US1.50 fully franked dividend last month and forecasts are for another $US1.45 in August, a yield that appears likely to maintain the loyalty of Australian investors. At this stage we would need a test of $55 for MM to consider lightening our position.
One of the standout trades in the portfolio last year was in the investment manager distribution & support business Pinnacle. Since November last year, shares have nearly halved from all-time highs with a re(de)-rate across all listed managers. Pinnacle is somewhat different to the rest though, taking stakes in a diversified range of money managers across debt, equity, international and everything in between and providing them with the backend services with a focus on marketing and distribution. They have further capacity to scale up and with…
US stocks surrendered some of their recent recovery overnight as inflation fears were ignited by a surging oil price which ultimately has a bearish economic read through for global equities. It might surprise many to know but we still feel US tech stocks look and feel good with last week’s Thursday low feeling like a panic pivot point that should hold this initial down leg for growth / tech stocks but we reiterate we still feel a decent recovery should be sold.
MM has stuck with WHC through thick and thin and although the company hasn’t been performing particularly well the underlying coal price is on fire – excuse the pun. Coal has surged 20% above its 2021 high yet WHC is still 7% below where it was in October. We’re still positive on WHC looking for some performance catch up and an eventual test towards $4, or 15-20% higher.
DUB -4.76%: cloud call recording and AI business Dubber reported aftermarket yesterday to wrap up the reporting period. The result was largely pre-released at the quarterly update in January with Revenue and ARR growth known. Costs have risen as they buildout their global headcount and integrate the technology on a number of large telco platforms. Also weighing on…
PBH +17.46%: There is some speculation circling around the future of US focused PointsBet prompting a decent rally in the share price today. While we have been long and wrong this stock in our Emerging Companies Portfolio we summed up our view recently which is worth rehashing today… Since peaking a year ago above $17, PBH raised $215m in an institutional placement at $10.00 followed….
We remain bullish gold and the sector over the coming weeks / months but NCM like much of the local names has disappointed through 2022 as investors became fixated on rising bond yields. MM holds 5% of our Flagship Growth Portfolio in NCM and this position will certainly be under review if / when it challenges our target area.
The gold sector both in Australia and overseas has failed to embrace the rally in precious metals over the last 6-months but it caught our attention yesterday because ASX gold stocks edged higher throughout the day even as the precious metal backed off $US30 from its dizzy opening. Conversely we saw oil stocks largely tread water as the energy prices drifted lower during our trading session.
