Viewpoint: Bullish
AWC rallied over 5% yesterday to suddenly find itself close to fresh 4-month highs, sentiment should be helped here by Aluminium rallying strongly towards its 14-year highs as a number of metals start to gain strength as investors decide COVID is becoming a bad memory hence the global economy can get back on track.
Even after CBA’s stellar result UK based VUK remains the standout performer amongst the Australian listed banks, in-line with its comparatively cheap valuation and MM’s current penchant for European stocks we still see VUK trading 8-10% higher before we plan to reassess our position.
The ASX200 rallied strongly yesterday following a good result and subsequent surge by Commonwealth Bank (CBA) – the company beat market expectations by around 5% which led to a 5.6% advance by Australia’s 2nd largest stock. The bank will be trading ex-dividend, $1.75 fully franked next week which must be very tempting for the yield hungry investors. The sentiment…
BAP -7.93%: 1H result for the auto parts business today, a tough first test for the new CEO Noel Meehan the day after he was appointed. Revenue was slightly higher to $900m, but EBITDA (-6%, $137m) and NPAT (-14%, $61m) both fell. Costs were on the rise, particularly warehousing and transit costs, eating into margins. They maintained full…
MIN -8.91%: Missed 1H22 earnings expectations delivering a loss for the period even when Lithium prices skyrocketed. A few issues for MIN in the near term however the ~10% drop today is starting to look interesting. Iron Ore prices were weak in the period and MIN is a high cost operator mining generally lower quality Ore. Chinese steel mills were…
CBA +5.58%: The No 2 stock on the ASX reported a strong 1H 2022 result today that was around 5% above market expectations. Cash earnings of $4.75bn v $4.51bn expected, a slightly better dividend at $1.75 and generally upbeat economic commentary had the buyers out in force with the XXX rally adding XXX index points to the broader market. Partially…
This is one losing position we would buy today if it wasn’t already in our portfolio. MM has been flagging a weak $US through 2022 and this is unfolding nicely, at this stage we would have been far better going long the Pound as the UK has already started hiking rates but after comments from Lagarde this week Europe looks set to follow suit.
A2M has gone from hero to villain in just 18-months after a number of issues conspired to see the stock plunge by around 75%, fortunately we tried to pick a bottom after the stock had already endured 80% of its losses but the trend would have been our friend here if we had simply stayed away. We’ve actually held A2 on multiple occasions over the past ~5 years and we’re down…
US stocks enjoyed a firm session overnight although they remain below last weeks high, our preferred scenario is stocks will consolidate their recent bounce for 1-2 weeks before they hopefully regain investor confidence enabling them to make an assault on highs but for some indices this will be a big ask after the sharp correction by a number of major large tech names.
MQG delivered an update to the market yesterday saying it would deliver another record quarter of earnings – no financials were given. The market liked the implication but really appeared to latch onto comments around the required $US75trn global infrastructure investment required into 2040 with over 50% on MQG’s doorstep in Asia. Things are looking good at…
