Viewpoint: Bullish
Scrap metal business SGM is clearly not a classic miner but it resides in the Australian Materials Sector and it’s been very correlated to other resource plays through 2020/21.
Following the recent divestment of its South African coal asset S32 has added $200m to its capital management program, simply we see nothing not to like in this diversified metals and mining company with the potential exception of the price.
The FOMC meeting has sent both US bond yields and the $US higher and we might have missed out on our planned buying of both into further weakness but we will remain patient for now to see whether the overnight move is sustained, or becomes a classic kneejerk reaction to the news.
US stocks fell late in their session with the Dow bearing the brunt finally closing down 265-points after the Fed warned investors that it now sees 2 rate hikes by the end of 2023 as their economy improves faster than originally anticipated.
The ASX200 continues to grind higher and although it only closed up 6-points yesterday it was the first time we broke above the psychological 7400 barrier as the banks, and especially CBA, continue to rally strongly.
The Coca-Cola Company manufactures, markets, and distributes soft drink concentrates and syrups. The Company also distributes and markets juice and juice-drink products. Coca-Cola distributes its products to retailers and wholesalers in the United States and internationally.
Deterra Royalties Limited is an Australia-based company, which is engaged in the management and growth of a portfolio of royalty assets across a range of commodities, primarily focused on bulks, base and battery metals. The Company’s portfolio includes royalties held over Mining Area C, its cornerstone asset, in the Pilbara region of Western Australia, as well as five smaller royalties, including Yoongarillup/Yalyalup, Wonnerup, Eneabba and St Ives. Its key royalty investment activities involve acquisition of royalties from third parties and providing finance to resource companies in return for royalties. The Company’s projects include Mining Area C (MAC), Yoongarillup / Yalyalup Mineral Sands Mines, Wonnerup Mineral Sands, St Ives Gold Project and Eneabba Project. MAC is located approximately 90 kilometers (km) north west of Newman Township in the Pilbara region of Western Australia, which is an iron ore province. MAC produces approximately 145 million tons of iron ore per annum.
CAR -0.71%: We met with the CEO & CFO of carsales today (via Zoom) to talk about the acquisition they made recently in the US called Trader Interactive, they paid just above $800m for a 49% stake partially funded via an entitlement offer with an option to buy the rest.
Shaver Shop Group Limited owns and operates online and offline stores for hair and grooming products.
The position currently sitting on the most profit within the portfolio is payments business Tyro, showing a paper gain of slightly over 100% after jumping more than 9% in the last week.
