Viewpoint: Bullish

EML Payments (EML) is held in the Emerging Companies Portfolios and fell ~50% this week, we’re now marginally down on this position having been up significantly.

Yesterday saw mineral sands operator ILU fall -4.4% in line with weakness across the resources sector although it did bounce strongly from its intra-day low, the company is specifically dealing with the news that subsidiary Sierra Rutile is planning a 6-month break due to a number of business issues specifically arising since COVID.

The second best performer yesterday was ALU, the electronic designer of automation software popped +6.6%.

WZR +7.41%: Good news out today for the Neo-Lender with their first Asset Backed Securities transaction.

MNY +6.85%:  Out with a trading update this morning where they upgraded guidance in FY21 for the second time.

This Australian traded $200m ETF tracks the US heavyweight FANG Index. If we see a spike lower in the $US a dip towards $15 is a strong possibility, an overall ~20% correction that would provide solid value in our opinion.

Cloud based logistics software designer WTC has been improving operationally with the current sector weakness starting to present some value in our opinion. If we get a washout to fresh 2021 lows on falling bond yields & $US we believe the risk / reward will become very attractive.

S32 is another Australian miner that MM likes but at lower levels, in this case the diversified miner will look great if we see a further 10% decline, again not out of question considering the stock fell 4% yesterday.

FMG is a stock very familiar with volatility and it could surprise many on the downside if the $US does indeed bounce ~5%. Another 20% on the downside would certainly spike our interest and although it sounds a big move the iron ore miner was trading around there in April.