Viewpoint: Bullish
Z1P +1.29%: Announced a new deal with Microsoft (MSFT US) today – a stock we hold in our International Equities Portfolio – to integrate into the Microsoft Edge browser. This is another incremental positive for customer acquisition into November/Christmas period. While the Product is not in the Microsoft store, it will utilises payment details…
GNC is largely known for its grain storage / handling operations but it also produces canola oil & meal plus cattle / livestock feed, clearly a good place to be invested if food prices are going to maintain their upside momentum. The stocks forecast to yield close to 3% over the next 12-months which when combined with some potential solid capital appreciation…
One vehicle to gain exposure to the broad global picture is the US based Invesco DB Agricultural ETF (DBA US) which by definition is denominated in $US. Another alternative is the local FOOD ETF which is hedged against FX moves and holds global agricultural stocks but not Australian ones.
Food prices may be poised to soar as China appears set to endure a tough harvest, not an ideal scenario with over 1.4 billion mouths to feed – Beijing may not want / need our iron ore anymore but the story could be very different towards Australia’s food products. Over the past year the worlds 2nd largest economy has already imported a record volume…
Interestingly the shorter dated US bond yields have popped to fresh 19-month highs as rate hikes from late 2022 get built into financial markets. Our view at MM is this move has basically only just started and portfolios need to be constructed accordingly following years when falling interest rates provided a significant tailwind for the growth pockets…
US stocks experienced a mixed session overnight with September now almost behind us, its actually not been too bad for the Dow which is down less than 3% so far and still looks poised to make fresh highs over the weeks / months ahead. The Dow and ASX200 still look very similar although iron ore has led to underperformance by the latter, eventually we are…
QBE is a company with a very chequered past having peaked above $35 back in 2007 but it’s also a business that should benefit from rising yields. We like the risk / reward for QBE which still remains well below its 2020 high, and another 10% upside into Christmas feels likely, hopefully our position in Insurance Australia Group (IAG) follows suit!
As we approach Q4 the question being asked by many is can the AX200 again rise from the ashes, yesterday it was battered for the 2nd successive day as September looks set to live up to its bearish reputation, the index is sitting down 4.5% with just today’s session remaining. Stocks have been caught with a classic “1-2 combination” as the deteriorating macro…
SIQ +18.07%: the salary packaging and fleet services business copped a takeover bid from private equity group TPG today. The bid values Smartgroup at $1.38b with the all-cash offer at $10.35/sh, a 32% premium to yesterday’s close. TPG will now get 4 weeks for an exclusive look at the books for the business and if the numbers match, the Smartgroup board is ready to unanimously…
APA Group is one of Australia’s largest energy infrastructure businesses with ~$20b worth of assets around the country that include gas pipelines as well as other transmission assets. As the energy mix changes more towards renewables, transmission of energy will remain key and APA is very well positioned here against a backdrop of rising foreign interest & ownership. The sell-off in the APA stock price recently is for 3 key reasons:
