Viewpoint: Bullish
Dalrymple Bay Infrastructure (DBI) provides infrastructure construction services. The Company offers port infrastructure and services for producers and consumers of coal exports. Dalrymple Bay Infrastructure serves clients in Australia.
As touched on earlier, US 10-year bonds have started consolidating their recent gains, in our opinion it’s the nature of the advance which unsettled pockets of the market
Another “tech” holding in our MM International Portfolio which popped higher overnight was Zoom (ZM US) which rallied well over +10% at its best illustrating how the pressure valve has been released once bond yields stopped surging higher.
Household name Apple (AAPL US) rallied strongly overnight lifting sentiment and indices higher in its wake however we do believe the upside momentum is diminishing and we wouldn’t be chasing current strength. Similar to the S&P500 we feel the stock will be a trading sell above $US145.
US stocks rallied aggressively overnight with all 11 sectors closing positive while the Financials & IT Sectors were best on ground, we remain bullish short-term looking for another assault on the 4000 level, now only 2-3% away.
Hamish Douglass’s MFG has endured a tough year being in both the underperforming fund managers and IT camps however we now feel an Est. 4.9% part franked yield should be supportive into any further weakness.
Australia’s largest bank CBA rallied an impressive +3.1% yesterday on a day when bond yields slipped lower. When we see new home loan approvals jump 10% for January it’s easy to comprehend the strong economic environment which is creating the excellent tailwind for the local Banking Sector.
BNPL heavyweight Z1P has been on a rollercoaster ride in 2021 having already endured 17% and 32% pullbacks, while this is undoubtedly a quality growth stock the sector is getting the “feel” of a bubble with major growth / revenue already built into today’s prices.
Gaming operator ALL which continues to bounce around between $30 and $35 swinging with the sentiment of the market and especially the high beta growth end of town.
Crown continues to take bad news in its stride and we’ve often talked about that being a sign of underlying strength. Today it was rating agency Moody’s that put CWN on negative credit watch
