Viewpoint: Bullish
The BOQ appears to have delivered a failed dip to fresh recent lows – MM is looking for 2022 to produced plenty of failed break outs in both directions. BOQ is a regional Australian bank that’s also due to trade ex-dividend in April and all things being equal with its result the stocks forecast to yield 5% fully franked over the next 12-months, clearly attractive…
ABB –1.42%: todays’ quarterly update a touch soft in terms of guidance but still showed strong growth. Total connections at 494.8k was right at the top of guidance provided in December, jumping nearly 10% in the quarter. Higher marketing spend over the quarter weighed on earnings though, and guidance looks to assume higher costs will weigh…
APX +7.99%: A strong performer on the market today and technically APX looks great for a continued rally. Their 2nd largest shareholder – London based asset manager Mondrian Investment Partners who manages around $US10bn – filed up this morning going from a 6.18% holding to 7.37%, showing confidence in the Artificial Intelligence business. There is a lot…
People are undoubtedly starting to fly again and make holiday plans although I had friends fly to Singapore last week and they were amazed how empty the plane was, it appears things are improving but customers remain understandably cautious especially when it comes to flying overseas where insurance / healthcare are more important than ever. QAN has…
Copper struggled last week as the $US popped on the upside but it remains in the middle of its almost 12-months consolidation pattern, at this stage we have no reason to suspect the industrial metals can’t eventually test $US500/oz but again we will probably need the $US to halt its advance.
No change, crude oil has been following the MM roadmap perfectly through 2021 and into 2022 and while the easy money now feels behind us we still think another 10-15% upside feels likely. This is one commodity that’s managed to advance even as the $US pushed higher, political tensions in the Ukraine has been a major tailwind.
The Australian Dollar is retesting its multi-month lows this morning following last weeks strength by the $US, its ability to hold around 70c is a good indicator but it won’t rally if the greenback continues to post fresh multi-month highs.
When we look at the even broader based US Russell 3000 Index, which by definition dilutes the impact of the high valuation tech stocks, the picture looks a tad more bullish following its 13% pullback. If the index can close out above 2600 in the coming weeks it will simply look like a 2nd correction within a fantastic bull market rally which has seen the index more than double in under 2-years.
ETFS Semiconductor ETF (ASX Code: SEMI) offers investors exposure to the world’s leading semiconductor companies, right through the value chain. Demand for semiconductors is being driven by a greater use of electronic devices which includes servers for cloud computing, chips for artificial intelligence and robotics, video game consoles and PCs, and electric cars.
Integrated property business Goodman has been sold off almost 20% in line with many higher valuation names, we are keen buyers of this business into current weakness hence MM is looking to increase our position from 4% to 6%.
