Viewpoint: Bullish
Locally traded ACDC ETF – We are looking to buy the ACDC ETF, at this stage a staggered approach with bids at 88 and 85 making sense but we may be forced to raise these levels.
WSA -1.36%: Rumours continue to swirl around a takeover transaction coming from Independence Group (IGO). Reports coming from the media today suggested a mostly scrip bid that would value WSA around $3.10-$3.20/sh was in the works with nth company’s confirming that talks were in progress and due diligence had been granted though Western Areas…
Australian infrastructure assets are in demand as suitors act to lock in cheap long term funding, AusNet Services (AST) the latest company to attract overseas attention. Gas pipeline business APA has not experienced such interest, instead their share price has fallen as they look to position themselves to buy Basslink, an electricity interconnector…
Downgrades are now flowing for Iron Ore price expectations with UBS the latest to lower their price forecasts which leads to the obvious question, has the horse already bolted? Downgrades typically follow rather than lead commodity prices, there is very little that is predictive about them generally.
The Uranium sector has been hot over the past month as the Sprott Physical Uranium Trust went into the spot market in a big way pushing up prices from near $US30/lb to above $US50/lb. Uranium equities have followed the move in an amplified way attracting hot money in the process. MM had a Paladin position in our Emerging Companies portfolio that…
In a very logical move, toll road goliath Transurban (TCL) was in a trading halt yesterday launching an equity raise for a whopping $3.97b – the biggest on the ASX for 3 years, to purchase, along with its 3 partners the remaining 49% they didn’t own of the tunnel network Westconnex for $33b. The deal is structured with existing shareholders…
Commodities were lower overnight however again there was a lack of conviction to the move, it felt more orderly than panic driven implying to MM that we shouldn’t be shaken out of our bullish stance towards commodities in our Flagship Growth Portfolio. For copper, a test of $US400/lb now seems likely which would translate into a move in our preferred…
Overnight saw a distinct “risk off” session for US stocks with the S&P500 falling -1.7%, although an hour before the close the market was off substantially more. Keen buying of the dip into the last hour was noticeable and while the market finished lower, the sell-off was far from aggressive. Our optimum target area for this largely followed global index is now only ~4% lower.
The ASX200 was hit hard on Monday falling by more than 2% on very broad based selling. The only pocket of strength coming from the utilities sector which benefited from yet more corporate activity from cashed up foreign investors, this time Canada’s Brookfield took aim at AusNet Services (AST) which is involved in electricity & gas distribution in Victoria elevating…
The S&P500 has only dipped 2.5% but the percentage of bears is soaring, an imbalance that will need to be addressed when stocks find a base – in our opinion traders are finding it easy to adopt a bearish stance during September, especially with COVID / China concerns. We believe this bearishness will provide fuel to the market when sentiment turns, a transition…
