Viewpoint: Bullish
The travel and tourism stocks enjoyed a strong move yesterday after a few quiet weeks and although QAN couldn’t keep pace with Flight Centre (FLT) and Webjet (WEB) it remains on course to reach our $6.50-$7 target area.
One day doesn’t make a summer but it was encouraging to see BOQ, our recent purchase in the Banking Sector, rally 1.7% to even outstrip CBA as it again made fresh all-time highs. Most of the influential sector still looks good which will probably be required for the ASX to achieve our targets.
The ASX200 again faltered at the 7475 level yesterday, from a technical perspective the pictures getting clearer by the day – when / if the ASX200 closes above 7475 it’s a great buy targeting fresh highs with stops under 7440, excellent risk / reward for the trader. However at MM we are “Active Investors” and as such we’re more focused staying fully…
CBA has been the leading bank in Australia for many years with much of its recent outperformance attributable to its early investment in tech upgrades, its simply way ahead of its peers on this front. This week they have again stolen the march on their peers by announcing their intention to add cryptocurrencies onto its banking app i.e. this will enable…
As we touched on earlier it was encouraging to see precious metals rally overnight even as the $US popped higher after the Bank of England restrained from raising interest rates, a major surprise to most economists – I’m thinking the BOE might want to see a clearly defined exit from COVID as the number of cases again rises in the region.
Overnight US stocks extended their strong rally from their October low, it’s now approaching 10% for the broad market as the tech names illustrated overnight that a stock / sector that can hold firm in the face of a deteriorating macro backdrop (rising bond yields) is likely to pop when the headwind is removed – the NASDAQ has now bounced 13.6% from its October low and it’s currently accelerating to the upside, a trend that MM feels is too early to fade.
PLS continues to follow the MM roadmap since its 30% dip in September / October. We remain bullish & long in our Emerging Companies Portfolio looking for new highs with an initial target around 20% higher, however we do believe the easy money is now behind us and risks are increasing for buyers at current levels i.e. remember this is a stock which has a habit of experiencing deep corrections.
A rally by NST yesterday caught our attention because gold had fallen the night before, this morning the $US has rallied but gold has surged around $US30/oz, this sort of move implies the precious metal has thrown off the shackles of 2021. We are bullish NST targeting the $11-12 area into Christmas, a healthy 25% advance.
The ASX200 rallied 0.5% on Thursday as the Financial & IT Sectors teamed up to drag the index towards fresh 4th quarter highs, it doesn’t feel like it but we’re now only 2.7% away from new all-time highs and its slowly starting to feel like when, not if, we reach that milestone. The stock and sector rotation might be dominating the tape day to day…
CSR +4.67%: Reported first half net profit today of $156.6m which was up from $58.7m this time last year while their interim dividend of 13.5c reflected that strong growth. They talked to strong demand for building products with earnings before interest & tax (EBIT) up 25% while their Aluminium division was also strong thanks to higher spot…
