Viewpoint: Bullish
A very strong debut yesterday on the ASX with the stock up ~70%. This is a very good business that is highly scalable particularly as they venture overseas, the only sticking point for the MM Emerging Companies Portfolio at the moment is price.
VUK is one of our top picks for 2021 but its already up 45% year to date and it feels like its tiring as it heads towards our $4 target area. This is high Beta banking position which by definition can be expected to fall harder than the underlying sector when it does correct.
The reason for the tumble comes on the back of speculation aluminium being used in the current build of a number of Australian naval vessels was not up to spec and had to be replaced with the issue delaying delivery of 6 boats by up to 16 weeks.
MM has been watching the VXX slowly slip lower as equities grind higher, we feel the time to establish a long position is nigh.
Airtasker (ART) develops community platform that connects people who need to outsource tasks and find local services such as home cleaning, handyman jobs, admin work, photography, and graphic design.
MM went long IAG last week and its felt ok even as the rain rolls across NSW, investors should remember insurance businesses re-insure and make provisions for such natural disasters, albeit within reason. Unfortunately for the consumer higher premiums are probably inevitable which are good for insurance margins.
Serial underperformer and “dog” at times QBE remains ~30% below its pre-COVID levels. The headlines from QBE’s report earlier this year didn’t make good reading with the $1.5bn loss front and centre
The Insurance Sector was under some pressure yesterday as would be expected with NSW being battered by floods however QBE was the worst performer and it only fell -3%, overall a solid performance in our opinion
Alphabet remains one of the strongest and clearest big tech names to MM, at this stage we are still targeting at least another 10% upside hence we are comfortable staying long in our International Portfolio and by association the QQQ Trust in our Global ETF Portfolio.
US stocks rallied overnight as the US 10-year bond drifted lower, this is the roadmap we’ve been alluding to over the last fortnight and at this stage we believe the likes of the S&P500 and NASDAQ will again post fresh all-time highs.
