Viewpoint: Bullish
Crude oil has been following the MM roadmap perfectly through 2021 and into 2022 – although the easy money now feels behind us another 10-15% upside feels likely.
The British Pound has drifted lower over the last 6-months but we feel the dial has turned bullish which should eventually see a test of its pre-BREXIT levels, a move which suggests a lower greenback which is good news for the Aussie Dollar and gold alike.
The picture in Europe hasn’t changed for a few weeks especially when compared to most major indices, we remain bullish looking for around 5% upside with the markets ability to largely ignore US markets certainly encouraging to this positive stance.
Following a tough few years integrated energy retailer ORG has been showing real signs of a recovery over recent months aided by a sustainable 3% dividend although its not as exciting as it was earlier in the year. MM likes ORG as a defensive play through 2022, an area where we will be looking for increased exposure moving forward.
DR copper as its so often referred to has edged higher this week helped by the stimulatory actions / noises from China, if we are correct it should soon be on its way to test the $US500/lb psychological level.
Iron ore producer FMG has now rallied over 50% from its panic low in November, MM has already taken most of the meat out of this sandwich to-date although we reiterate after talking profit we are not bearish FMG but simply adopting a more neutral view – a very attractive fully franked dividend is looming this time next month.
Major copper and gold producer OZL has been grinding higher from its August low, it should be remembered that the stock turned higher around 5-weeks earlier than the underlying copper price. Hence MM wouldn’t vaguely be surprised to witness the same on the upside i.e. we can see OZL topping out before our $US500/lb target for copper which is around 10% above todays price for the industrial metal.
The ASX200 put in a solid result yesterday managing to close slightly higher even after a torrid session on Wall Street, only 30% of the index closed positive but the gains in the resources names were enough to tip the balance. Gold stocks were the undoubted standouts across the board with even the relatively conservative play Newcrest Mining (NCM) managing…
CRN +5.94%: a strong day for the coal company with the 4th quarter production coming an ahead of expectations. Saleable coal production for the full year of 17.4mt was slightly ahead of 2020, and a small beat to guidance that was revised lower in December. Revenues were strong and Coronado managed to finish the year with a net cash balance of…
