Viewpoint: Bullish
The ASX200 climbed to fresh October highs yesterday morning only to get clobbered at 11.30am when markets saw Australia’s inflation rate significantly surprise on the upside – the RBA’s preferred gauge, the CPI trimmed mean YoY, came in at 2.1% for the 3rd quarter compared to expectations of 1.8%, importantly the economy is rapidly approaching the…
NTO +0.85%: Q3 update from the document productivity company was solid today and came with a small upgrade to guidance for the full year, helping to support the stock on a flat day. Subscription revenue was up 50% year on year, underpinning a 2-4% bump in FY21 revenue guidance to $US49-51m. Expected EBITDA loss was also lowered to under…
WHC +4.04%: Edged higher today following commentary at their AGM with dividends to resume in the “near future”. Historic highs in coal prices is generating cash at a rapid rate which is being used to pay down debt, however that will be done soon opening the door for capital management, sooner than the majority in the market were expecting…
Reported after market overnight and there were a few key takeaways, the first being a comment from the MSFT CEO about technology more generally which I think is very relevant: Digital technology is a deflationary force in an inflationary economy. Businesses – small and large – can improve productivity and the affordability of their products and services by building tech intensity” – Satya Nadella, CEO MSFT.
One on the hitlist for the Emerging Companies portfolio is Gentrack – we discussed this stock in last week’s video update, click here to view. Gentrack is a client information system for utility companies, based in NZ with clients in Australia and the UK as well. Revenue has been held back in recent years, COVID reducing spending from customers was…
US stocks rallied overnight with the broad market finally closing up 0.2% while the tech based NASDAQ poked its nose up to fresh all-time highs. A small pullback / period of consolidation wouldn’t surprise but we still envisage a test of the psychological 16,000 level by tech stocks into November.
Following Tesla’s historic 100,000 vehicle order from Hertz the lithium / battery stocks enjoyed an understandably strong Tuesday with Pilbara (PLS) +8.1% and ORE +4% two definite standouts. Following its more than 20% correction in recent weeks MM had transitioned to a bullish stance towards ORE and the lithium sector – we recently bought PLS for our Emerging Companies Portfolio and the ACDC ETF for the Global Macro ETF Portfolio.
Yesterday saw CWN get a very useful reprieve from the Victorian Royal commission, they have 2-years to get their house in order which certainly beats having their gaming licence stripped away. The action will hopefully set some degree of precedent for Sydney and Perth which will put CWN back to business but with a small mountain to climb. MM will be re-evaluating our position moving forward especially if we see gains back towards $12 but this should be taken as a positive while we wait of the news from the other 2 states.
The ASX200 again tried to push higher early on Tuesday only to drift through the afternoon, this style of price action might often concern us but the local market just feels a little stretched this month, we still anticipate fresh highs into November / Christmas. All the action on Tuesday was on the stock / sector level as lithium stocks rallied while gold stocks…
