Viewpoint: Bullish

HSN -3.93%: the utility billing software company reported HY numbers, coming in largely in line with expectations with shares trading lower with the weaker technology sector today. Revenue was flat and in line with consensus at $149m while EBITDA fell 17%, slightly below expectations.

NSR Flat: We like this self-storage business that we’ve owned in the past, while it currently resides on our Hitlist.. Today they increased their FY23 guidance for underlying EPS of at least 11.5c versus prior guidance of at least 11c – an incremental upgrade rather than anything more definitive, however clearly the trends remain positive in Self Storage.

RDY -7.52%: An interesting smaller software business exposed to defensive areas such as local government, education & justice that we’ve owned in the past reported their 1H23 result today and talked to positive trends for the 2H – the share price was down but three things stood out to us.

STO +3.08%: Had a good session today following FY22 results that showed NPAT of US$2,46bn, up 160% on CY21 due to higher oil and gas prices. While 2H earnings were weaker than forecast due to higher costs, the dividend of 15.1c was better and their guidance was good.

Copper and gold miner SFR has already surged by +19.85% in 2023, a very impressive performance when we consider the ASX200 is only up +4.2% year-to-date. The $3bn WA-based miner has enjoyed some major tailwinds over the last 6 months including a +38% bounce by copper, China dropping its COVID Zero Policy, and BHP’s whopping $9.6bn bid for local competitor OZ Minerals (OZL).

The coworking office company released their HY numbers last Thursday with the stock up ~4.5% since the print. The numbers were solid, Net Profit Before Tax (NPBT) up 49% to $20.3m with North America, Europe and the Middle East the key drivers to the rebound while Hong Kong continues to underperform highlighting the important diversification within the business.

When farmers are making money, they buy machinery and as supply chain pressures ease, Deere & Co is now in a very good position to take advantage of this growing demand through better pricing which sees stronger margins – a theme that has started to play out as reported in their Q1 update last week where they beat expectations and raised full-year earnings guidance – the stock ‘popped’ ~7% on the day.

The emerging markets have bounced along with most indices from last October although a resurgence by the $US has weighed on performance over the last few weeks. This is a basket of stocks that run their own race and at this stage, we like the exposure as China’s reopening should help the Asian region in particular – we may consider exiting our IEM ETF position ~8-10% higher depending on how the China v central banks balancing act is playing out.

CXL +6.1%: 1H numbers from the environmental industrial technology company helped drive shares higher today. Revenue beat, jumping 20%, while gross profit fell marginally to $2.6m.

BHP -0.33%: Down early before recovering well later in the day after reporting 1H23 NPAT of US$6.6bn, which is below consensus $6.8bn. The dividend was in-line with expectations at US90c.