Viewpoint: Bullish
COL +3.17%: A good set of 1H22 results today for Coles, particularly in the context of where the share price has traded over the past 6 months, down from ~$19 to below $16 on concerns around supply chain issues. Group sales were $20.5bn for the half up 1% on last year while EBITDA of $1,762bn was 2.2% down on 1H21 which shows the additional covid related…
HUB +4.84%: Delivering a great set of results on a day when the market gets clobbered is never going to get the outcome it deserves, however HUB finished up ~5% in a market that fell -1% within a sector that led the decline down by -3.20%. This morning HUB released 1H22 results that were broadly in line at revenues ($81.6m) and well ahead of expectations in terms…
The rerating of the tech sector has been one of the standout stories of 2022 but after the US NASDAQ’s 18% correction since November last year we believe it’s time for the brave investor to start considering some of the beaten up names, if only for a short sharp recovery.
Crude oil futures rallied back to their multi-year highs overnight as Ukraine troubles continue – Russia is the worlds 2nd largest oil producer which means the almost inevitable sanctions following any invasion could see prices challenge their decade highs. With petrol at the pumps already at prices not seen in many years I can imagine this is the last thing Joe Biden wants to maintain some semblance of popularity back in the US.
US stocks were closed overnight for Washingtons Birthday leaving indices poised on a knife edge as Ukraine continues to weigh on risk assets. We are leaning slightly towards higher prices but the markets tone is undoubtedly very nervous as Biden and Putin play geopolitical chess.
CBA has already paid an appealing $1.75 fully franked dividend this year but the stocks still looking solid although a couple of its peers, who pay their dividends in April, look to have moved onto investor radars. If / when we finally get some resolution out of the Ukraine a push back above $100 feels a strong possibility as the Banking Sector remains in the midst of its historically strong seasonal window.
The ASX200 enjoyed a sharp turnaround yesterday as the news crossed our screens in late morning that Joe Biden and Vladimir Putin had agreed to hold talks over the Ukraine / Russia situation – the can gets kicked down the road and war is averted at least for now. We cannot imagine Russia will mount an assault into Eastern Europe after so much stoushing between the…
OZL -0.46%: FY21 results out for the Copper company today with sales inline with expectations, however profit was a slight miss (NPAT$531m vs $567m expected). The dividend of 34cps was ahead of the 32cps expected while they maintained guidance for the year ahead. We remain long OZL in our Flagship Growth Portfolio.
ABB +7.56%: the emerging telco was out with their 1st half results today, though it was largely pre-announced. They’re tracking well and maintained FY22 EBITDA guidance of $27-30m. NBN market share climbed to 5.7% continuing their above market growth. Talks with Over The Wire (OTW) continue, looking to wrap up the deal next month. The acquisition is expected to be…
A2M +11.13%: It’s been a tough few years for A2M and more often than not, results day has been met with a large sell-off as they miss the mark, today that was different. The 1H22 scorecard released this morning was void of nasty surprises and confirms the new management team now have a handle on the business. While the headlines are weak with profit down 53%, they were…
