Viewpoint: Bullish
The broad based US S&P500 backed off from its all-time high over the last fortnight but a pullback of less than 2% is pretty impressive considering the inflation data which led to some underperformance by the influential growth stocks e.g. the tech based NASDAQ slipped 3.3%. We still anticipate the greatest risk into 2022 will be focused on the interest…
No major change, we are bullish the ASX200 looking for fresh highs into 2022, a close above 7480 in the coming weeks will suggest to MM that such a move is underway – experience tells me it’s likely to start on a day when its least expected.
CXL +19.93%: shot up today after filing for a patent – they are looking to use their technology to produce a zero emission steel option which would allow mills to reduce temperature and use renewable power in steel manufacturing. The technology will move on to testing next but it’s just one of the many applications of their kiln technology that…
This bulk commodity is very topical at the moment after more than halving in recent months courtesy of strong arm policy shifts by China and the much discussed collapse of China Evergrande which has led to a huge slowdown in construction in China. Our view things will now level off and some of the damage inflicted on the respective stocks will be addressed…
The ASX200 may have traded in a reasonably orderly manner since COVID but over recent years there have been some standout areas of the market that have moved in and out of vogue leading to significant periods of both under & outperformance, all the investor has needed to do was pick the trend and then ride it before moving onto the next – the fast money feels like its moved around as almost one block.
Overnight US stocks had a mixed session with the tech names dragging the S&P500 slightly higher while the Dow retreated 0.44%, no change to our view that US stocks are likely to drift a touch lower before establishing a platform to rally into Christmas.
WTC caught my attention yesterday as it slipped 3% making it the worst performing tech stock that didn’t report on Thursday but when we stand back and consider the stock since its explosive rally in August the move was just a blip on the radar – we remain bullish WTC which also provides an encouragiung read through for stocks in the sector…
NTO -2.81%: returned to trading today after successfully completing a capital raise to fund an acquisition. NTO is raising $140m at $3.43/sh through a placement and a 1 for 11.4 entitlement offer, a 10.7% discount to Tuesday’s close. The money will be put towards a $US81m acquisition of Connective, a European e-signature business. It’s an on message…
XRO -6.22%: first half result for the accounting software business was a bit light on. They swung into a loss of $NZ5.9m vs a $NZ34.5m profit in 1H21, despite growing revenue 23% and gross margins expanding 1.4% to 87.1%. Earnings and cashflow were impacted by higher marketing and & development spend which are expected to subside…
Yesterday saw iron ore fall to fresh 16-month lows as it looks for a new level of equilibrium but encouragingly FMG maintained its hold on the $14 area. We continue to believe that FMG represents good value at current levels and a minor recovery in iron ore could easily see the stock 20% higher i.e. a stock that doesn’t fall on bad news is strong, or in…
