Viewpoint: Bullish
Yesterday saw WHC make new 18-month highs, up almost 300% over the last year. This is one company where we have no intention of fading the move for a number of reasons:
We often write about Fund Managers, Private Equity, Superannuation Funds etc being awash with cash, the chart below illustrates this point perfectly as an precedented amount of money has flowed into global equity funds through 2021, its not surprising there’s been an absence of any meaningful selling in equities. To put these inflows into perspective since…
The ASX200 continues to grind higher, we might often be closing well under the intra-day high but before we know it the index has again pushed through to post new all-time highs. On a day to day perspective this rally feels slow and steady, almost like 3 steps forward and 2 back, but when you stand back and look at the monthly chart of the local market…
FY21 Result: Pre-released results at the end of July and took a lot of ‘below the line’ charges so there are no surprises today.
The recent kick up in bond yields and the $US has led to a period of consolidation by a number of commodities including base metals, healthy in our opinion considering they’re aggressive rally from March 2020 lows. If we get a another dip by the Blomberg Base Metals Index under 250 the risk / reward will look very appealing for buyers.
The $US is breaking out to fresh 4-month highs as it embraces the strong local economic data and rising bond yields – financial markets move like an interconnected jigsaw with today being a perfect example. The initial move higher sent commodity prices lower but they appear to have stabilized for now with the move being priced in however…
The US Dow has started to outperform the tech heavy S&P500 since bond yields started rallying post Americas strong Employment Data, a trend we believe will be ongoing for a number of weeks / months. The US Banking Index looks great with at least a likely +10% upside whereas the tech stocks are feeling tired, as opposed to bearish. This…
The ASX200 again posted new all-time highs yesterday, local stocks continue to march ever higher with IT and Banking the backbone of the Tuesdays +0.3% gain. The local market continues to follow the rhythm of the rally which commenced back in February, we’ve now seen the local market appreciate over 1000-points / 16% in just 7-months with our…
FY21 Result: A big result was expected and is clearly priced into the market with CBA trading at all-time highs of $106.56 – and they’ve certainly delivered on that this morning. Cash profit for FY21 from continuing operations was expected to be $8.6bn, they’ve delivered $8.65bn which is up 19.8% on FY20. A full year dividend of $3.42 expected (2H dividend of $1.92 which is up from $1.50 in the 1H) and they’ve delivered $3.50 ($2.00 in 2H).
Fertilizer, chemical and explosives manufacturer IPL has rallied steadily in 2021 and in July they announced changes to its manufacturing model switching from a global to regional structure as it strives to improve efficiency. The company’s last half-year results announced in May disappointed investors after it delivered a 6.7% drop in revenue to $1.724bn, however expectations are for a better second half leading to a doubling of profit on FY20.
