Viewpoint: Bullish
The ASX200 slipped 0.25% yesterday but considering the generally negative leads from overseas indices and sheer panic that washed through Australian interest rate markets it actually felt like a solid performance. The selling frenzy that’s washed through bonds this week feels akin to how stocks plummeted when COVID first raised its head although…
Caterpillar Inc. is a manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The Company operates through its three primary segments : Construction Industries, Resource Industries and Energy & Transportation. It also provides financing and related services through its Financial Products segment. Its Construction Industries is engaged in supporting customers using machinery in infrastructure, forestry and building construction. Its Resource Industries is engaged in supporting customers using machinery in mining, heavy construction, quarry, waste and material handling applications. Its Energy & Transportation, which supports customers in oil and gas, power generation, marine, rail and industrial applications, including Cat machines. Its All Other operating segments, which includes activities, such as product management and development, and manufacturing of filters and fluids, undercarriage, and others.
WHC -4.95%: Coal stocks were hit hard today right around the Asian region as news broke that Chinese authorities plan to limit the selling price of thermal coal to ease a power crunch that’s prompted electricity rationing. While Whitehaven Coal (WHC) sells no coal to China, prices in the region have been crunched as that’s put a lot of pressure on coal…
NCM +0.84%: Posted quarterly production numbers today that confirmed a soft start to FY22, albeit well flagged while they reiterated full year guidance. Gold production was 27% lower than the prior period, a bunch of factors to blame and it was foreshadowed in the June 2021 quarterly report, however as would be expected, lower production impacted…
ORG has bounced over the last few months, the last piece of positive news being the sale of its 10% stake in Australia Pacific LNG for $2.21bn leaving it holding a 27.5% position and a bigger war chest to handle the major energy transition that it playing out around the globe. Some brokers are now calling ORG up towards $6 and we feel that’s a strong possibility i.e. 15% higher. The stocks 3.35% yield is a nice added bonus making it an option for our Income Portfolio.
Microsoft (MSFT US) surged over 4% overnight following its quarterly results eclipsing analyst expectations as cloud revenue soared by 36%. MSFT is the dominant force in the race for cloud domination which can only be huge positive In our opinion, the next time we see this behemoth get dragged down 10-20% due to a weak broad market we believe it will represent another excellent long-term buying opportunity.
Overnight US stocks experienced a mixed performance as tech stocks played some catch up with the broader market and Dow, standouts were Google Alphabet (GOOGL US) and Microsoft (MSFR US) who both delivered strong earnings subsequently advancing between 4-5% as quality continues to rise like cream in milk. I can see a dip in US equities…
MM mentioned earlier in the week following the news of its partnering with the Australian government to acquire South Pacific-based telco Digicel, we like both the partnership and strategic move for TLS and we can now see the stock trading well above $4 into 2022. Similar to RMD earlier the main question is how to fund the purchase, another…
We touched on the Healthcare Sector earlier and RMD is our pick of the bunch today after its 16% correction over the last 2-months. MM is underweight the Healthcare Sector and we feel RMD would make an excellent fit into our portfolio however as we sit on only 4% cash in our Flagship Growth Portfolio the question is what to sell to fund such a purchase, the holdings that come to mind are:
Mentioning bond yields has got repetitive of late but surprises usually happen with the trend and in the case of yields that’s clearly up, we were expecting a few weeks / months consolidation at lower levels now it seems more likely around 1% – we still believe it’s a big call to expect Australian 3-year bond yields to push much over 1% while the RBA is committed to pinning them at 0.1%.
