Viewpoint: Bullish
AMP has been an awful investment for many years including this financial year which has seen the once financial giant tumble yet another 30% in a bullish market but around current levels we see some intrinsic value in this business with a risk / reward profile that’s become enticing – notice I didn’t say it was a quality operation, however that does not mean it can’t double in price very quickly!
European indices have backed off almost 2% from their all-time highs posted early this month, they feel a little tired but MM remains a keener buyer of weakness as opposed to seller of strength.
US stocks were mixed overnight but the broad based S&P500 still managed to post fresh all-time highs courtesy of a booming tech sector, now of course a major influence on many US indices.
WHC has been a serial disappointment on the operational front over recent years but a coal price which has more than doubled over the last year makes the stock extremely cheap in our opinion but it looks like we’re not alone, directors are still buying!
Health and safety business ANN boomed during the pandemic which saw demand for items such as rubber gloves literally skyrocket and even during a decent dip in late 2020 the stocks remained well above its pre-coronavirus highs.
The ASX200 put in an admirable performance on Monday to close basically unchanged even as the country slowly but surely slipped back into a COVID induced lockdown.
MTS +0.82%: announced FY21 results today for an April year end. The numbers were broadly a miss both at top and bottom line despite 10% revenue growth, and 27% growth in NPAT line on FY20.
The stocks that benefit from a lockdown did well today, Kogan (KGN) +6.5% and Temple & Website (TPW) +10.24% while Adore Beauty (ABY) put on 2.5% after being up a lot more early.
The ATEC ETF is a repeat of last week but it’s where the action is unfolding, the local tech sector has recovered solidly over the last 6-weeks and we remain bullish still targeting at least another 8% upside for the local tech ETF hence we have no urgency in taking profits with of our tech holdings.
The “Fear Index” has fallen below its pre-pandemic levels illustrating how comfortable investors are with risk markets at present, it feels too complacent my end when we consider how quickly NSW, Darwin etc have been forced into lockdown.
