Viewpoint: Bullish
WHC – 2.12%: coal miner Whitehaven was out with their September Quarter production numbers today which looked a bit on the light side. While coal prices have been ripping higher, Whitehaven have struggled to hit production targets, though that is starting to shift. The Narrabri mine, which had struggled lately, saw production stabilise at a run rate of 6mtpa.
HUB +8.73%: the investment platform continues to hit the ball out of the park, today announcing record quarterly inflows for the first three months of FY22. FUA grew $3b to $45.4b, up 139% year on year as more investors move to independent platforms. The company recently set some lofty targets to hit $63b in FUA by FY23 however they have the momentum and continue to sign more licence agreements – 30 in Q1 – that provides clear line of sight to the figure.
Lifestyle Communities Ltd is an Australia-based property development and management company. The Company builds, owns and operates land lease communities that provide affordable housing options to Australians. The Company’s homes include features, such as kitchen with stone bench tops, stainless steel appliances, soft close doors and drawers; contemporary bathroom design and fittings; spacious bedrooms with walk-in robes; reverse cycle split-system heating and cooling and window furnishings throughout light-emitting diode down lights. It also includes carpet and tiling; telephone points, exhaust fans, smoke detectors; front deck/verandah; landscaped front garden, and private rear yard with Color bond garden shed and clothesline. The Company offers community homes in Brookfield, Lyndarum, Deanside, Tarneit, Berwick waters, Casey Fields, Chelsea Heights, Kaduna Park, Meridian, Officer, Warragul, Bittern, Hastings, Geelong, Ocean Grove, Mount Duneed and St Leonards.
Transaction processing company TYR has been discussed a few times by MM since its listing in late 2020 and it currently resides in our Emerging Companies Portfolio – we still like it but having gone long well under $2 we cannot get too excited as buyers closer to $4.
A small dip in US bond yields and the $US led to an explosive night for the likes of copper and gold with the former rallying over 4%, the Australian Resources Sector should enjoy a strong session today. MM is still looking for another 10% upside from copper over the coming weeks / months implying the $US is poised for a more prolonged dip.
Overnight US stocks had a mixed session with the Dow struggling courtesy of a tough session for JP Morgan (JPM US) while the NASDAQ led on the day courtesy of bond yields slipping lower. Our best guess is bond yields and the $US will have a deeper pullback from current levels which should see last night’s moves continue i.e. the resources and tech stocks rally, with our target for the NASDAQ still 8% higher.
GMG caught my attention yesterday as it appeared to find decent support under $21 after enduring a 13.4% pullback. This is a stock which fits our view towards the index into Christmas perfectly i.e. we are targeting fresh highs into Christmas but a trading range between $20 and $24 is our preferred option over the coming months suggesting buyers shouldn’t chase strength.
Yesterday’s top performer was A2M which soared over 13% following an announcement from Bubs Australia (BUB) whose first quarter result was well ahead of expectations aided by sales across the Chinese Daigou channel improving i.e. a potentially great read through for A2M. We touched on the NZ based companies rally in the “Match out Report” yesterday but there are another 2 points worth making:
The ASX200 closed yesterday at the same level it reached in early June i.e. more than 3-months later the market remains unchanged albeit after a failed foray above 7600 in August. We’ve witnessed plenty of sector rotation in the last quarter even if the underlying index has failed to make any discernible headway, the choppy swings between various stock…
A2M 13.45%: caught a bid today thanks to a strong sales read through from Bubs (BUB). The infant formula company saw sales almost double in the 1st quarter with a strong 156% jump in sales to China compared to the first quarter of 2021. Sales into daigou channels were particularly strong, a market which has troubled A2 Milk recently in a sign…
