Viewpoint: Bullish
Google enjoyed a strong session overnight after beating analyst expectations reiterating its status as the world’s most powerful advertising engine. This time it was retail marketers trying to encourage consumer spending that drove the beat with revenue for the quarter coming in at an extraordinary $US51bn for the quarter.
Overnight saw another solid session for US stocks with the major indices hovering around their all-time highs as they enjoy a double tailwind:
The ASX200 struggled yesterday in the face of broad based selling which ended with 70% of stocks closing lower by the end of the session. On the sector level the unusual combination of IT & Energy stocks bore the brunt of the selling although the big 3 of CBA, CSL and BHP falling an average of -1.3% had the largest impact on the underlying index.
NTO -5.22%: hard to really fault the 2nd quarter of Nitro with the tumble today largely attributed to the tech weakness. Nitro is a smart documents & signature business, printing annual recurring revenue (ARR) of $33.8m, up 56% in the quarter. The strong growth validates their recent shift to a subscription based model which now makes…
Building products company CSR should welcome NSW’s attempt to get the construction industry back up and firing if only on a few cylinders plus we believe more economic stimulus can be expected moving forward. We believe CSR now represents good value after correcting 20% – another stock in a strong uptrend that encountered…
The small telecommunications company is on our radar heading into its first full year result as a listed company. It has twice upgraded prospectus forecasts since listing thanks to a clear trend of upselling NBN connections to higher margin products,
Similar to oil, copper has corrected over 16% from its mid-May high and on balance we believe its now headed towards the $US5.00/lb area – over the next 6-months we are likely to be sellers around $US5.00 and buyers closer to $US4.00 i.e. it’s time for some consolidation with an upside bias.
Crude oil has recovered strongly after its 14% correction, the pullback now looks complete and an assault on the psychological $US80 is our preferred scenario into Christmas – another bullish back drop for the Global Resources Sector.
The $US has now spent the last 7-weeks consolidating in the 92-93 area after rallying strongly in June, we wouldn’t be surprised to see a failed foray towards the 94 level but MM believes the upside is becoming limited which again implies bond yields are near their or close to their nadir.
US stock indices have left the ASX in their wake since COVID raised its ugly head in 2020, they’ve enjoyed a significant weighting to Big Tech which has surged in the “new world”. However with bond yields looking set to rally MM believes that the likes of Banks & Resources will outperform into Christmas which should drop down into the local…
