Viewpoint: Bullish
PLS +2.15%: a strong 1H for the lithium miner driven by improving realised prices overshadowing the departure of the CEO today. They swung into profit for the first time with NPAT of $114m with lithium spodumene attracting an average selling price of $US1,250/dmt. Prices have continued to surge with some agencies seeing spot prices more than 3x what Pilbara were…
WOW +1.36%: A beat for Woolworths today, following on from the decent first half report seen by Coles (COL) earlier in the week. Sales were in line while NPAT came in around 6% better than expectations at $795m. Costs were well controlled despite the difficult conditions caused by supply chain and labour issues. The second half has started strongly as well with…
CXL +10.96%: 1H22 from a purely numbers focus was a miss, however the opportunity for the mineral processing technology business is what it’s all about. Sales revenue was up around 6.5% but total revenue fell given lower R&D incentives and grant income. Operating profit swung into a $5.2m loss with the lower revenue and higher costs, particularly sales & admin. From an outlook…
APA -1.38%: A strong inline result is a good way to describe the APA result today even through underlying profit was a strong beat to consensus. The beat came from a lower tax expense however offsetting that marginal positive was an increase in their capex guidance to $1.4bn over FY22-24. The interim dividend of 25cps had been pre-announced however they did reconfirmed FY22 DPS guidance of 53cps. We own APA in the Income Portfolio and remain happy holders collecting a ~5% yield.
Childcare has been a very challenging business over the last 2 years and being one of the largest operators in the space, G8 has certainly felt the brunt of these challenges Yesterday, they reported FY21 results that were around 5% better than expectations and in MM’s view, show signs the turnaround is gaining traction. They also announced a share buy-back , reinstated the dividend and…
Crude oil closed higher last night after challenging the psychological $US100/barrel area but now the conflict in the Ukraine is built into prices we expect a few weeks consolidation before we see whether crude can push through towards $US110, at this stage its our preference which correlates with MM’s view towards WPL and the Energy Sector.
US tech stocks dipped under their January lows as we expected, the question is are we correct and a 10-15% rally is just around the corner, time will tell with the whims of Mr Putin adding an obvious risk to our call.
NCM and the gold sector has finally found some love over the last 4-weeks on the combination of a weak $US and increased tensions in the Ukraine. It’s been a frustrating journey being long NCM but considering our bearish view towards the $US we’re still comfortable with our current $29-30 target area i.e. from our perspective given the geopolitical escalation and the “risk-off” mood in global equities its surprising to see only a muted bounce by the greenback.
This morning we have updated our outlook for Woodside due to its correlation with our position in Santos (STO) – albeit a frustrating one when compared to WPL! The news around Ukraine is clearly adding a situation tailwind to an already very strong oil price and we feel the current upside momentum has further to run although the news driven choppy volatility…
AWC -3.29%: Released their FY21 financial results today reporting a net profit of $226mn which was a shade below the $231mn expected by the market. The 6.2cps dividend was also a miss versus the 6.9cps expected however this looks to be more a timing issue than anything reflecting a lag in the timing of cashflow from the alumina JV. Looking forward, FY22 should be…
