Viewpoint: Bullish
Last week we increased our Trade Desk (TTD US) position and purchased Shopify (SHOP US) both of which are working out nicely so far, this has left us still holding a relatively elevated cash position with one move front and centre today.
While we believe the current $US recovery has further to unfold MM still believes it’s a countertrend bounce as opposed to an important change in trend. The previously outlined moves in bond yields has finally brought an opportunity in the long end into our buy zones, a scenario we have been stalking for a few months:
BVS -4.11%: Hit today on the deteriorating COVID situation in the UK.
IGO +6.21%: Nickel miner IGO is currently the best performer on the ASX200 today after further updates on their acquisition of a lithium asset.
MM has also increased our Z1P position into recent weakness taking our holding to 5%, another example of volatility in the sector in both directions!
MM recently increased our XRO position to 5% after the stock corrected more than 30%, a great example of the volatility which often roll through the IT Sector.
MM has held a 3% position in MP1 since September last year and while it hasn’t always been plain sailing yesterdays pop to fresh all-time highs rewarded our confidence in the business / company.
MM took a 3% position in CAR as they raised capital to fund a US acquisition which knocked the stock.
BVS is our most recent purchase in the sector and we currently hold a 4% position from $3.52.
MM has a 3% holding in ALU which is benefitting nicely from the recent $38.50 bid from US tech giant Autodesk (ADSK US). On balance we believe another bid in excess of $40 is a strong possibility.
