Viewpoint: Bullish
Infrastructure investor APA Group (APA) has been on the MM radar for some time with a combination of higher expected interest rates plus the prospect of an equity raise weighing on the share price in recent times. The second piece of that puzzle is the interesting bit, APA looks to be positioning itself to buy Basslink, an electricity interconnector…
Again no change, with the S&P500 slipping just -0.3% overnight but large tech maintained its role as market backbone with the NASDAQ edging +0.15% higher. Our core view into 2022 remain in play:
Similar to Qantas and many travel and tourism stocks Webjet has rallied nicely over recent weeks with fresh 2021 highs feeling imminent – its already rallied +17% over the last month. However MM believes WEB is at the lower end of the quality curve and we still prefer other plays such as QAN to take advantage of our pending hopeful return to normality.
Sentiment is cyclical which is understandable with so much influence from these dominant human emotions of “Fear & Greed” with CSL typifying what we so often see on the stock level:
On the surface the RBA did little to worry / convince investors that interest rates are set to rise with bond yields remaining significantly below their Q1 2021 highs. However we believe it’s a matter of time with the risks on the upside almost increasing by every jab.
The ASX200 closed marginally higher on Tuesday as it continued to hover around the 7500 level, the number of winners & losers almost exactly matched with only 1% of stocks moving by over 5% i.e. there was little on the stock level to excite investors following the Labor Day holiday in the US. However on the macro / news level there was a couple of…
Peter O’Connor, our resource Analyst at Shaw sums up his current picks in the resource space this morning and I’ve included key highlights below. We own Whitehaven Coal (WHC) & Newcrest (NCM) in the Growth Portfolio + have had S32 on the radar for a while, although we now prefer to buy the consolidation of the ~$3 breakout. We also own Coronado Coal…
Lithium producer ORE rivals any chart pattern in the ASX at present and yet again it dovetails with the likes of PLS and IGO. Again we are looking for another 5-10% upside before we would adopt a more neutral stance looking for a period of choppy consolidation.
MM went long IGO not long after our previous report and so far so good with the position showing ~10% paper profit. Interestingly this battery storage focused business looks similar to PLS in our opinion, initially we are looking for another 5-10% upside before a potential period of consolidation. We might be tempted to take some profit here especially…
Only a few weeks ago MM wrote a report titled “Our favourite 3 lithium plays” but as is so often the case in these volatile & hot sectors news flow runs thick and fast and over the weekend we saw Mineral Resources (MIN) bank a very healthy ~$330m profit from its investment in Pilbara Resources (PLS), only taken on back in 2016. The major miner / mining services…
