Viewpoint: Bullish
US bond yields continue to follow MM’s preferred path for a period of consolidation. After hitting 1.75% the US 10 year yield has now drifted back to 1.67%.
EML +5.45%: Announced they will acquire 100% of European based Sentenial for an upfront enterprise value $108.6 million, plus an earn-out component of up to $62.1 million.
We are stepping up and initiating a position going long volatility. While we may be slightly early here, we’re starting with a 50% weighting and will add to the position in time.
Moving from Google into marine company Brunswick Corp is a clear shift down the risk curve.
The payment terminal business has been publishing weekly transaction value data for over 12 months now which provides a great read through to the opening up of the Australian economy.
OPY moved to raise capital early last week and launched a subsequent share purchase plan for retail holders as at 30 March.
Independent platforms were sold off heavily last week as news broke that HUB’s closest competitor, Netwealth (NWL) had been given 12 months’ notice by ANZ that interest on cash accounts which is paid at 0.95% above the overnight cash rate would no longer be offered.
Coal stocks have clearly been out of favour however we see a short term opportunity to establish a position in Whitehaven Coal (WHC) based on a disconnect between the underlying commodity and the price of WHC.
With bond yields now consolidating their recent advance and the $US showing signs that it’s short term rally is losing steam, the probably for a bounce in Gold is increasing.
CWY +15.94%: The waste management company has announced a deal that it’s been working on for the past 12 months, having finally reached an agreement to buy the Australian waste management assets of Suez SA for $2.5bn.
