Viewpoint: Bullish
Alphabet Inc. (GGOGL US), through its subsidiaries, provides web-based search, advertisements, maps, software applications, mobile operating systems, consumer content, enterprise solutions, commerce, and hardware products.
2 The VIX recently dipped under 20% for the first time in almost 12-months, history says it will probably stay depressed for a while but we believe the VXX ETN shown below is in an accumulation area below 15 and will probably rally ~30% in the coming 6-months.
We mentioned PayPal last week, the relatively new age payment gateway PayPal (PYPL US) has performed strongly in 2021 after gaining 16 million new active accounts in Q4 of 2020 alone!
The Australian Dollar ($A) has maintained its assault on the 80c level which MM believe will be scaled in the coming months, the question we continue to hear is when will it top out?
Interest rates have been declining for 40-years meaning the vast majority of people involved in markets today have never experienced a bear market for bonds / a period of rising interest rates, just the occasional blip as the chart below illustrates.
3 – In the bigger picture bull markets don’t die of old age or because of excessive valuations, the later generally just leads to a correction. The two most common catalysts which herald the arrival of a bear market are inflation or deflation and with the central banks printing money like never before we believe its inflation and subsequently higher interest rate that will end this particular post GFC bull market.
These guys / girls can’t seem to take a trick reporting a very solid result this morning, the first of their listed life on a day where high value growth was on the nose. For those not familiar with Adore, they are the largest pure play online retailer of beauty products in Australia having listed in October last year, and todays 1H21 result was above both January 2021 guidance for a 7% increase in revenue against Prospectus (achieved 8%) and a very strong beat at the EBITDA line (+58% on Prospectus forecast).
This morning produced 1H21 results that beat the street plus their full year guidance for growth of 10% was inline with current market expectations. For the half, they produced revenue of $947m v $874m expected, an 8% beat.
Back online today after raising capital at $7.35 to buy ME Bank, the stock closing at $9.21. We wrote this morning that we’d be interested ~$8, that has proved optimistic!
Local communication software company Dubber continues to make waves in the industry, today announcing a deal with big swinging US telco AT&T. Dubber is a cloud software company that allows users to record calls, as well as providing transcripts and AI analysis of communications.
