Viewpoint: Bullish
A company that needs very little introduction is car maker Porsche Auto, and while it’s a well-known performance brand, it’s share price has had a more chequered history. As the Chinese middle class continues to grow, demand for higher end luxury vehicles increases and the new luxury electric vehicle Taycan from Porsche is gaining traction in this lucrative market.
A lot has been written about the significant cash sitting in consumer’s bank accounts as a result of unprecedented stimulus and lockdowns which has kept people from spending. As we hurtle towards the festive season and freedom, retailers are likely to see a surge in spending into year end. Shaver Shop is our preferred pick amongst mid-cap retailers…
High yield bonds have started to slip of late as defaults wash threw the Chinese property developers, we are more mindful than scarred at this stage but we do believe this is a clear indicator that careful positioning will be required around equities and sector exposure through 2022.
US stocks slipped overnight but we still see the currently out of favour tech stocks constructive, albeit in a rapidly maturing bull market. Our preferred scenario is the NASDAQ comes back into favour and we see a 8-10% rally from current levels but importantly MM is likely to reduce our exposure into such a move both locally and overseas – this be definition probably implies a rest / pullback in bond yields.
Yesterday saw WBC announce a substantial $1.3bn write-down on asset value & additional provisions for customer remediation, yet on a down day the stock only fell -1.65%. The banks have traded sideways for months and our view hasn’t changed – buy around $23 and sell around $28, the only likely tweak to these levels is when the stock trades ex-dividend in early November.
The ASX200 had a fairly quiet Tuesday finally closing down 0.26% in a lackluster session which saw no stocks rally, or fall by more than 5%. The Tech Sector continued to struggle even on a day when the Energy names took a well-deserved breather. Over the day US S&P500 futures appeared to direct traffic on the local market i.e. when they rallied…
NCM +0.08%: the gold miner was out with updates across a four of their growth projects as they look to grow production and cut costs. A study on PNG mine Lihir has paved the way to grow production to over 1Moz a year from FY24 onwards, for at least 10 years, on a relatively small investment for $179m. A pre-feasibility study has been completed on…
As we alluded to earlier aluminum hit fresh 13-year highs overnight due to energy disruptions, it may take a while to punch above the $US3000/MT area but the trends up which is the direction in which surprises usually unfold. We are long the related AWC which has a 40% stake in aluminum producer Alcoa, we see value in AWC due to the supply side of the equation.
The copper priced corrected almost 20% from its May high dragging the Australian related names lower in sympathy e.g. OZ Minerals (OZL) corrected a whopping 26%! We are bullish copper from current levels with a test of the psychological $US500/lb area our preferred scenario hence our target for OZL is fresh highs around $28 where we would in all…
