Viewpoint: Bullish
As we’ve mentioned previously the “yield play” stocks have struggled in 2021, high flying property group GMG is down -4.2% so far this year.
Australia’s largest bank is up +6% in 2021 but it has paid an attractive $1.50 fully franked dividend
The Queensland based insurer took a first crack at estimating the cost of the recent floods that impacted much of the east coast a fortnight ago.
They are looking to develop WA’s Coburn project and a $120m raise will see them fully funded to complete this.
The BNPL company with a UK focus was in a trading halt yesterday raising capital, new shares were being offered at $2.03, a 15.8% discount to last.
At the end of FY20 they had a net cash position (i.e. no debt) and that gave them the comfort to pay out a big dividend in March which included a 17.5cps ordinary dividend and a 14.5cps special dividend, both fully franked.
MFG has corrected over 35% from its mid-2020 high.
The Korean KOSPI is the standout on the charts, it looks set to make fresh highs which is a great read through for at least a bounce in the Emerging Markets.
US stocks remain within striking distance of the psychological 4000 area, while there are no sell signals in play at present we do believe the air is rapidly thinning and the next 10% swing is likely to be on the downside.
It hasn’t felt like it but tech has been improving over recent weeks but some stocks certainly have with heavyweight Xero (XRO) bouncing almost 20%.
