Viewpoint: Bullish
ASB +3.21%: announced a milestone contract win at lunchtime today, helping shares in the shipbuilder trade higher through the afternoon against a weaker session more broadly. Austal won their first steel vessel contract from the US Navy, a $US145m contract to build two salvage and rescue ships. They have invested a significant amount in getting their…
We are buying the Battery Tech & Lithium ETF (ACDC) which is listed on the ASX into recent weakness. We’re allocating 5% now with the view to allocate a further 5% if it pulls back further
There is a bid on the table for salary packaging & novated leasing business SIQ which is an all-cash offer at $10.35 per share from a consortium led by TPG. While the deal is non-binding for now, they have been granted exclusive due diligence and the board will unanimously recommend the offer if DD comes out as expected. The stock is trading at $9.40 pricing…
Bond yields have started rallying with some momentum over the last few weeks, MM believes the pullback of the last 5-months is complete and eventually we will see fresh multi-year highs which should fuel ongoing outperformance by the banks and financials.
The champagne cork feels like its popped for the energy stocks with heavyweight WPL having rallied over 25% in just a few weeks, the oil price has rallied but the gains across the sector have that significant FOMO feel about them – “Fear of Missing Out”. The sector clearly doesn’t tick the in vogue ESG box but as we saw with Whitehaven Coal (WHC) it’s often like a game of chicken and when 1 or 2 fund managers start buying the stampede can follow – ESG is the acronym for environment, social & governance or…
The ASX200 climbed impressively from its lunchtime low yesterday to end the session down just 0.3%, not a bad effort considering the weak leads from the US and Europe. Over 70% of the market closed in the red but the losses were concentrated in the less influential tech stocks enabling the major index to remain resilient as the “buy the dip” mentality remerged – one day doesn’t…
QAN -1.2%: Nice to be on a call today that was bullish / pro-growth from a travel stock with Qantas outlining their intention to buy more than 100 new planes worth in excess of $9 billion as it pushes ahead with plans to start ultra-long flights non-stop between Sydney & Ney York + London. QAN will bring in the new aircraft by 2034 to renew its aging…
Oil Search (OSH) is the best performing Australian oil stock over the last year but even it still remains well below its March high as crude oil continues to rally ever higher – we believe this is a cork that will pop and OSH could easily rally 20% very quickly which is a solid read through for the rest of the sector. NB: MM owns Santos (STO) which is taking over Oil Search (OSH).
We often remind subscribers that commodities are cyclical and one of the best examples of recent times is coal which has rallied around 500% over the last year, not a move that many foresaw in 2020 when the fossil fuel continued unabated with its 2-year old bear market. The tricky part is knowing / guessing when to disembark the train because these…
In line with our outlook for the $US and resources MM is bullish the Australian Dollar which hopefully will coincide with many subscribers enjoying some overseas travel as the world reopens into 2022. We find it very encouraging that the local currency didn’t make fresh 2021 lows in recent weeks even as the $US rallied – we’re still targeting a break of 80c into 2022.
