Viewpoint: Bullish
We’ve discussed WHC a number of times of late and after a ~75% surge in a month the stocks suddenly within striking distance of our initial target area.
The ASX200 continues to hover around the 7300 area with stock / sector rotation still the main game in town, Thursday saw funds drift out of the banks and resources into the beneficiaries of lower interest rate such as IT, healthcare and real estate although most moves were fairly muted ahead of last night’s US inflation data i.e. at this stage its felt like there’s been some book squaring as opposed to major repositioning, only 1% of the market moving by over 5% yesterday illustrates the point.
Yesterday, technology business Altium was sold off 7.5% to close at $34.30, an ~11% discount to the price they have rejected from suitor AutoDesk (ADSK US).
The VIX indicator is probably the most recognised measure of investor sentiment and it understandably continues to look comfortable & confident as equities rotate around their all-time highs.
US and European stocks edged lower overnight, the World Index which is basically global stocks minus emerging markets continues to tread water around its all-time high.
When we bought IFL in the Income Portfolio towards the end of 2020 the news flow was horrible, much like the backdrop was for the banks during their darker days, however as the negative rhetoric around financial planning has eased the stock has rallied.
We made a number of tweaks across the MM portfolios yesterday in a larger than usual alert.
We’ve held Bravura Solutions (BVS) in the past having taken a loss on the position pre-COVID as they grappled with weak sales in their UK division.
Nitro is a document productivity and signature business taking on the big hitters of Adobe & DocuSign.
This is a very interesting company that essentially powers the ecommerce capability of merchants.
