Viewpoint: Bullish
Gaming machine operator ALL has corrected well over 20% being caught up in the tech sell-off but we believe this is quality business whose valuation is not challenging especially as the stock should benefit from a post Omicron reopening economy.
The strong crude oil price has helped the Energy Sector rally in 2022 even while the $US has firmed in anticipation of rising interest rates. At MM we believe this journey has further to go but as we’ve said previously the “easy money” is behind us.
OZL -2.89%: Production numbers out today that came in at the bottom end of the guided range for Copper although that had been flagged in the September quarter update, while Gold production was at the high end of the range – costs were in line with expectations. Importantly, OZL delivered another strong year – the 7th consecutive year of meeting copper…
PDN -1.45%: Australia top uranium name was out with their quarterly production report today. Its been a busy quarter despite the Langer Heinrich mine remaining on care and maintenance. They’ve been doing drilling and technical work in preparation for a restart as the uranium market continues to improve. Total resource was increased to 77Mlb of ore though…
European stocks faired far better than both the US and ASX due to their relatively small exposure to tech and our 4500 target remains intact i.e. fresh post COVID highs, around 8% above the overnight close.
US stocks experienced a choppy session overnight as would be expected after a Fed announcement, we had been looking for some major volatility in 2022 but an 18% correction by tech in the first few weeks was outside our expectations – tech names have actually fallen more on inflation & yield concerns than they did during the 2020 outbreak of COVID! We have to respect…
WHC has been a serial underperformer over recent years and the company unfortunately maintained form after recently downgrading production and announcing costs had risen – a bad combination! The near dated coal price may have surged to fresh multi-month highs but the corporate performance is proving a major weight on the WHC share price, another attack on $3 feels a strong possibility but $3.50 is now feeling like a step too far.
The NZ based milk / baby food manufacturer A2M rallied over 7% on Tuesday, clearly a good move on a very weak day until we consider the plunge over last 12-months, a large short position could easily see this squeeze continue. The rally following ongoing rumours that the embattled business had become a takeover target with Canadian diary giant…
Tuesday saw the ASX200 get savaged following a poor night on Wall Street and nerves ahead of the Feds pending interest rate decision, not to mention the market being closed for Australia Day creating the perfect storm for traders to have zero risk appetite. Its old news as we brace for this morning’s trade but less than 5% of the market managed to advance in…
Copper largely ignored the significant volatility in equities last week finally closing marginally higher, we remain bullish the industrial metal and its related stocks but as we saw on Friday when the ASX is smacked over 2% few names can evade the aggressive selling.
