Viewpoint: Bullish
MIN is not a new company to the MM report, we’ve been monitoring it since it started falling aggressively in August and while we didn’t anticipate a more than 40% plunge we remind ourselves of the old adage – “with panic comes opportunity”. MM likes the business from a few simple perspectives:
US bond yields edged higher overnight following the strong retail sales data taking the key 10-year rate back towards its April high. While we think some ongoing consolidation into Christmas is likely our core view remains that reflation will continue into 2022 hence any surprises will be with the new trend i.e. bond yields higher.
US stocks rallied overnight following strong economic data with the retail and discretionary spending stocks not surprisingly leading the line. New highs feel inevitable in the coming week (s) although we’re not convinced the recent consolidation is complete however the rhetoric remains the same for now i.e. “buy the dips and fade the pops” with the former…
The ASX200 succumbed to broad based selling on Tuesday, only the IT Sector managed to close in positive territory while the resources led the declines – the stock and sector rotation continues almost day to day, anybody attempting to identify a clear trend looks destined for disappointment. As we often say the market will be there tomorrow and…
SRG +4%: the mining and asset services company announced a number of new contract wins today worth around $110m. It includes two 3 year mine maintenance contracts, a 3 year engineering services contract for NZ dairy producer Fonterra and two deals with Rio Tinto for work on their Queensland alumina refinery. The key will now be margins – services…
CAJ +7.25%: the diagnostic imaging company hosted their AGM today with a solid performance update which helped the stock higher. Capitol Health has seen revenue up 6.3% in the first 4 months on the year when compared to the same period pre-CVOID in FY19. This comes despite around 80% of revenue being generated from Victoria, one of the hardest…
TLS -1.25%: Held an investor day today which we’ll cover in more detail in tomorrow mornings portfolio report however a key focus is on growing / scaling their non-core businesses, particularly in health software and technology through recent acquisitions such as a majority stake in billing services firm PowerHealth, and a $350 million purchase of…
The fund bought US homebuilder Dr Horton Inc (DHI US) which we believe looks great and could see another 15% upside in the coming months, similarly we are bullish the overall sector looking for fresh highs into 2022 i.e. at least 10% higher. This should have a bullish read through for our local position in CSR Ltd (CSR) which we also see 10-15% higher into 2022.
Again the US banks have outperformed our own and Soros has revealed new positions in Goldman Sachs (GS US) and JP Morgan (JPM US), in this case we like the exposure although again the risk / reward around current levels is not overly exciting – MM has a decent position in Wells Fargo (WFC US) in our International Equities Portfolio. The…
Billionaire George Soros maybe 91-years old but he remains famous as a hedge fund manager who is widely regarded as one of the greatest investors of all time plus of course he is often referred to as “The man who broke the Bank of England” – he made over $US1bn by short selling the Pound back in 1992 after identifying it as overvalued while the UK…
