Viewpoint: Bullish
MM has been talking CBA at $100 for many months and here we are only 2% away, now the AFR has joined our catch cry the stock’s bound to have a pullback!
MM stepped up and followed our recent note by allocating 3% of our Growth portfolio into CAR ~$17.25, we like their move into the US online caravan, truck, equipment and motorbike space believing the capital raise is providing a deep value entry into the business, many fund managers appear to agree with the majority of the raise being placed at ~$18.
MM are buying a technology stock into current weakness.
The RBA is struggling to convince the market that rates will remain lower for longer with local 3-year bond yields now above 0.3%, triple the current cash rate and targeted target.
The VIX index spiked towards 30% last week following a couple of tough sessions for US stocks but as we can see it rapidly dipped back under 20% as the downside momentum for equities abated, our view is another wave of selling is not too far away and we can now see a test of 40% in the coming months.
We also hold a position in TPW in our Emerging Companies Portfolio which is around breakeven at present.
We hold a small position in KGN in our Emerging Companies Portfolio which is showing some excellent paper profits although they have diminished of late.
SEK made fresh all-time highs last week following a favourable trading update and currently appears to have simply come off the boil with some profit taking and general sector selling.
REA is a quality on-line real estate business that most Australians visit on a surprisingly regular basis, especially when prices are soaring like today!
