Viewpoint: Bullish
This is an ETF that tracks a bucket of global gold companies and is listed in Australia and overseas. Below is the Australian version listed on the ASX and we are using recent weakness to add the basket to the MM Global ETF Portfolio
Last month HLS delivered a solid report including a 190% increase in net profit and for the 1st 6-months of 2021 over $950m of revenue, up 16% year on year. Obviously the companies enjoyed a COVID generated surge in revenue through its pathology department but we believe some of this will be maintained as the world moves to a new norm post the pandemic.
We like this private hospital operator which also qualifies as a quasi-recovery play as people can finally get there planned elective surgeries performed.
CSL’s undoubtedly a quality business but it simply got ahead of itself from a valuation perspective in 2019 / 2020 however after falling ~30% in a rising market we believe some value has been restored, especially if the upside drive by the $A does abate as we anticipate in H2 of 2021.
MM has been looking for a recovery by the defensive sectors over recent sessions and its slowly been playing out but the big question is do we believe the likes of Healthcare will rally or simply outperform some hot value stocks that have soared in 2021.
US stocks were quiet but strong overnight with the only noticeable standout being some sector rotation back from value to growth stocks – its all about the Fed this week.
Yesterday we mentioned HUB’s entrance into the ASX200 in a weeks’ time, a “promotion” that was heralded with a 11.2% rally by the financial platform operator yesterday . We like this leading provider of integrated platforms, data and technology services but we are reticent buyers at present as MM is overall wearing our “sellers hat”.
Openpay has today announced a deal with St John’s Hospitals to launch a BNPL option for elective surgeries in 3 of the Catholic healthcare provider’s hospitals in a first in the Australian BNPL space. The partnership will initially launch as a 6 month trial before a decision is made on a full roll out.
Fortescue Metals (FMG) is Australia’s third-largest miner (behind Rio Tinto and BHP Billiton) and has more than 1 billion tons of iron ore reserves. It began production in 2008 and is one of the worlds best Iron Ore companies.
Bond yields have been the “Tail wagging the dog” in 2021 with the ~80% surge by the Australian 10-years creating a major headwind for some Australian Sectors e.g. IT, Healthcare and the classic “yield play” space such as Utilities / Transport. Our opinion is these stocks have primarily suffered due to the speed of the ascent after many complacent bond bulls were caught short assuming interest rates would continue to fall into a never ending abyss.
