Viewpoint: Bullish
The ASX200 is showing very encouraging signs of a recovery following its September retracement, last week saw a surge by a number of leading resources stocks (excluding iron ore names) while the Real Estate and IT Sectors also enjoyed a strong week. While we continue to see a rotation between sectors moving in & out of favour the standout…
Equity markets are often referred to as weighing machine since a famous investor from Omaha, Nebraska coined the phrase almost 50-years ago way back during the awful bear market of 1973-74. In our opinion the current market uncertainty and sector rotation is being caused by investors continually re-evaluating whether the strong post COVID economic…
SRG -1.96%: We missed covering yesterday however the construction contracting and mining services business hosted their AGM with some positive snippets. While many other contracting businesses are struggling to maintain margins, SRG has managed to keep a lid on wage cost pressure and continue to win work. They reiterated guidance of 15% EBITDA growth in…
Long term holding XRO looks well positioned to reach our medium-term $160 target area, similarly 10-15% higher. We are very keen on the companies prospects but its corrected more than 30% annually over the last 3-years illustrating that if the stock gets ahead of itself sellers will emerge.
WTC has slowly but surely been grinding higher over recent weeks, we are looking for another 10-15% upside which ties in with the NASDAQ making fresh highs over the coming months.
Overnight US stocks enjoyed a very strong session with the tech stocks best of a strong bunch as Apple Inc (AAPL US), Google (GOOGL US) and Microsoft (MSFT US) all rallied by over 2%. MM is still targeting a test of 16,000 for the NASDAQ, another 6-8% higher which should underpin most of the local tech names.
Copper / gold miner SLR feels like it’s finally in a “sweet spot” as both commodities start to enjoy a bid tone as the rate of the bullish rally by bond yields starts to wane, a great read through in our opinion if the stock just needs rates to stop rising to go up. We have an initial technical target for SLR around $2, or 20% higher – if MM were “traders” this is one stock / sector I would be considering strongly.
Following coppers strong advance on Wednesday night OZL embraced the bullish lead rallying 3.6% yesterday, the stocks slowly starting to lag the underlying industrial metal but if we are correct and $US500/lb is looming into Christmas a pop by this quality operator towards $28 still feels a strong possibility.
The ASX200 closed up 0.5% on Thursday although it struggled after 3pm giving back almost half of its gains as fairly heavy selling rolled through the SPI futures. Investors still enjoyed over 70% of the main index close up on the day but some weakness in the banks was enough to drag the market back towards 7300, historically the banks are strong…
