Viewpoint: Bullish
This payment solution business has outperformed the largely followed BNPL names in 2021 and its FY21 result released in late August has justified the stock’s performance:
BVS has been a thorn in our IT exposure of late after delivering a disappointing report in late August which was tarnished by weaker guidance and the departure of long term CEO. We believe the sell off has been overdone but as we mentioned earlier this is a sector which rarely returns stocks to favour in a hurry, a bounce back towards the $3.40 area may see us scratch this holding.
ALU has been on a volatile journey in 2021 after enjoying a takeover bid from Autodesk (ADSK US) which was rumoured to reach $40 but the board had no interest and the US suitor walked. The recovery in the share price currently supports the board’s decision as the printed circuit board (PCB) design software provider trades well above pre-bid levels.
MM has remained long and bullish XRO since April 2020 which has clearly held us in good stead. The company has evolved into one of the world’s leading accountancy software businesses and importantly it enjoys both strong growth and gross margins (around 86% in FY21). The stock is undoubtedly priced for ongoing strong performance but its delivering…
Australian tech rallied strongly yesterday enjoying over 90% of the major names closing up on the day while over a quarter of them rallied by 4%, or more. The Technology Sector may only be 5.2% of the ASX200 but it has a larger sentiment influence in our opinion and if / when it looks good the index usually follows although unlike the US the local names have been a distinct laggard in 2021.
After 24-hours to digest the Feds statement US investors pushed longer dated bonds to levels not seen since early July as the “reflation trade” slowly comes back into vogue, we are bullish bond yields hence our new TBF ETF position in our Global Macro ETF Portfolio. However while this presents a positive backdrop for the underlying structure of our portfolios…
US stocks rally overnight has them up for the week with only one session left illustrating yet again that the path of least resistance is up when all things are equal on the news front. We continue to believe stocks will rally into 2022 but are mindful of our 3 steps forward 2 back “feel” into the new year i.e. we don’t think the Dow will explode higher above 36,000 but…
Similar to WHC South32 (S32) is poised to make fresh 2-year highs as it relishes the rising coal price although this is a far more diversified miner. One option for MM is to reconsider maintaining a more diluted coal exposure through S32, a stock that has only doubled since its 2020 low i.e. a lower beta position. At this stage this is one idea we are contemplating…
WHC soared over 7% yesterday to be the ASX200’s second best performer, it’s now up 67% over the last 6-months compared to Fortescue Metals (FMG) which has fallen over 21% over the same timeframe – bar dividends which skew the picture in favour of WHC. As we’ve witnessed with iron ore resources are cyclical beasts and coal is no different, its price along…
The penultimate day of the trading week saw local stocks stage a strong recovery and we commence today’s session with the index down less than 0.5% for the week, what Chinese property panic! The market enjoyed broad based buying yesterday with over 80% of stocks rallying led by the Energy and IT names although impressively all 11 sectors managed to post gains.
