Viewpoint: Bullish
CXL +39.69%: Our most recent purchase in the Emerging Companies Portfolio crashed through all-time highs today after selling a portion of a subsidiary to a US ESG investment firm. A 7% stake in the LEILAC Group was sold to Carbon Direct Capital management for $24.5m. LEILAC is focussed on using Calix technology in the production of lime…
A softer week for this portfolio falling -1.08% while some changes during the week saw cash fall to ~12%. We took a good profit on Paladin (PDN) and Money3 (MNY), buying Capitol Health (CAJ), Calix (CXL) & adding to our existing position in Lynas (LYC).
The portfolio slipped -0.2% over the past week, a good performance through a week when the ASX200 fell more than-1% while cash sits at 6%. We enjoyed 4 of our holdings rallying by 5%, or more, while none fell by the same degree – CSR Ltd (CSR), OZ Minerals (OZL), Whitehaven Coal (WHC) and Santos (STO) with all of them not surprisingly residing in the Resources / Materials Sector.
The weak CPI print overnight sent US bond yields to the lower end of their recent trading range with the longer dated 30-years feeling poised to plumb fresh 2021 lows, not a move we believe will follow through but it is likely to create a headwind for the $US and subsequent tailwind for the Resources Sector.
Again no change, with the S&P500 slipping just -0.57% overnight with all 11 sectors closing in the red following a weak CPI number (inflation). Our core views into 2022 remain in play:
ALU soared over 6% yesterday on no apparent news except the reawakening of M&A speculation after the increased bid for Sydney Airports (SYD) feels likely to be successful. We believe this software business is good value under $35 even after the company rejected Autodesk’s (ADSK US) $5bn bid which was rumoured to be pushed up to $40 before the suitor walked.
Tuesday finally saw a snap to the upside from the oil names with Beach Energy (BPT), Woodside (WPL) and Santos (STO) all surging over 5%, a noticeably strong relative performance when compared to crude oils small pop back over $US70/barrel. MM has believed for a few weeks that something had to give with the elastic band stretching towards breaking point…
The ASX200 again recovered from early losses yesterday to close up 12-points with a 4.5% advance by the Energy Sector the clear standout, coincidentally the day after MM described it as “the cheap pocket of the market” – we remain overweight and bullish oil stocks which have fallen in 2021, even while crude oil has rallied almost 50%. The miners played a supporting…
Brambles (BXB) is a global support services group which provides pallet and plastic container pooling services and information management services.
Z1P -2.7%: the BNPL company held an investor day as they start to shape the conversation about other avenues of revenues. Zip are now looking to encourage customers to do more than just one off purchases through Zip with a digital wallet style offering including taking deposits, paying bills and even investing & paying with crypto the first hurdle.
