Viewpoint: Bullish
The picture evolving from Europe is very similar to the US and our preferred scenario is the EUROSTOXX 50 tests the 4500 area over the coming weeks which is around 8-10% higher – if this proves correct its great news for the highly correlated ASX.
US stocks rallied strongly overnight as the index enjoyed broad based buying, many investors may have become nervous or simply abandoned stocks over recent weeks but the Dow remains less than 4% below its all-time high and on balance we anticipate records to fall into 2022 – “buy the dip” is still rewarding the brave, perhaps it will be time to sell…
The ASX200 fought hard yesterday to close marginally higher in the face of some aggressive selling across the tech space, it felt like many investors / traders who were long high valuation growth names decided to take a hint from Bitcoins 25% plunge over the weekend i.e. if in doubt get out! The were a number of prominent losers in these high Beta…
Global Data Centre Investment Fund is an Australia-based managed investment scheme. The Company’s investment objective is to provide investors with exposure to medium to long term capital growth and income from a portfolio of data center businesses and assets. It invests in a pool of digital infrastructure assets not usually available to retail investors. It invests directly into data center business and assets by taking equity positions of between 20-50 million Australian dollars. The underlying portfolio of data centers within the Company includes data centers in Asia Pacific that are exposed to hyperscale cloud growth and regional/edge data centers in Europe and the Pacific. The Company focuses on providing unitholders with income and capital returns from investing in a diverse portfolio of digital infrastructure assets. Its subsidiary, FibreconX Pty Ltd, offers dark fiber services utilizing its own optimized duct network.
BAP -5.60%: the car parts distributor was smacked to 15 month lows today after ushering long standing CEO Darryl Abotomey out the door. Just two weeks after announcing Abotomey would retire in February, the Bapcor board brought forward his departure saying the relationship had soured and his “position as MD & CEO had become untenable.” What’s worse…
MTS +7.34%: 1H results out for Metcash today and they were strong with EPS growth of 15% despite coming off a very strong comparable period i.e. the starting point was high. It was even more impressive considering the loss of its 7-Eleven contract while they also had lower tobacco profits which implies the rest of the business is accelerating. They went…
Copper heavyweight OZ Minerals (OZL) tested its pre-GFC levels on Friday which is a great vote of confidence in the stock, copper price and by definition economic growth. We can see this quality operator rallying 10% from current levels but it will be looking “rich” from a valuation perspective in the $28-30 area.
Iron ore has managed to bounce 20% from last month’s low which has helped the likes of Fortescue Metals (FMG) rally over 30%. Our ideal scenario will see the bulk commodity at least double its recent gains which again is supportive of our view that the resources stocks should rally into 2022.
The ASX200 is set to open around 10-points higher this morning remaining firmly in the trading range which commenced way back in early June, at times its been a frustrating 6-months where news both good & bad has failed to take the index to a new level, in either direction. I recall as we entered the current financial year writing that a few months…
NTO -9.52%: tough day for the e-signature software business after competitor DocuSign (DOCU US) missed forecasts and was smashed aftermarket. The US based DocuSign gave 4th quarter revenue guidance of $US 557-563m, around 2.5% below consensus, though the stock was hit ~30% in aftermarket trade. The market was hyping up for a beat…
