Viewpoint: Bullish
Chorus Limited (Chorus) is a telecommunications infrastructure company. The Company maintains and builds a network made up of local telephone exchanges, cabinets, and copper and fiber cables. The Company’s product portfolio encompasses a range of wholesale broadband, data and voice services across a mix of regulated, contracted, and commercial products. Its products include fiber broadband, fiber premium, copper-based voice, data services over copper and copper-based broadband. Its fiber and copper connections provide access to the Chorus fixed lines network to enable connections to the Internet. Its infrastructure includes the physical storage and site-sharing rental services for the co-location of the third party or shared assets. The Company’s field services include services in the field to protect, strengthen, and increase the available network.
SUL +7.75%: Strong today on the back of a bullish UBS report as they upgraded to buy and put a $13.50 PT on the retailer. We’ve owned this stock in the past, we like it and agree with much of the UBS commentary. Their confidence has improved around the Australian consumer based on feedback from their economics team, however they also have this thing…
We’ve chosen gold producer NST as a candidate for the embattled gold sector but it could have been a number of different names. MM believes the sectors cheap and will enjoy a sold bid tone into Christmas if the $US fails to appreciate through the current 94 area – one MM’s core views at this stage.
We all know the reasons surrounding the demise of FMG, they’re real and are unlikely to go away in a hurry, the question is does it justify an almost halving of the share price. We believe its gone too far too fast and a 25% “bounce” feels like a strong possibility. To MM this is more of a trading play as opposed to long term investment as we feel it might…
Bond yields took a rest overnight following a few strong sessions which was clearly enough to let rate sensitive names bounce nicely. Perhaps this is the way forward into 2022, bond yields rally but only slowly hence causing a relatively minor disruption to equities as they start to contemplate a “Christmas Rally”.
Overnight US stocks enjoyed their biggest reversal in over 6-months erasing 1.3% of early losses, as we’ve been saying over recent days equities feel like they have or are close to finding a low to Septembers market pullback.
The hike by the RBNZ yesterday coincides with our view that global bond yields / interest rates have bottomed, no Einstein call although we have been onboard this view for over 12-months. The strong correlation between interest rates in Australia and New Zealand implies home owners should be considering locking in some of the attractive offers in the market…
The ASX200 disappointingly reversed lower yesterday after a promising early start following a strong night on Wall Street, however 3 major headwinds engulfed our market throughout the day, MM’s view is the plunge by US futures was key to the decline by local stocks but there wasn’t much good news crossing the news wires for investors:
PLS -0.27%: Delivered a decent set of September quarter production numbers today and importantly, beat their shipping guidance which is key when Lithium prices have more doubled amid a tightening market. The company produced 85,759 dmt of spodumene concentrate in the quarter, up from 77,162 dmt in the June quarter. More product…
