Viewpoint: Bullish
Commodity markets continued their bullish advance overnight led by crude oil which rallied almost 4% sending the Energy Sector up ~4.5% in the US. Again similar to copper this is slowly but surely feeling like an acceleration move to the upside which could surprise many and see a test of $US70/barrel in 2021.
US stocks were notably mixed overnight with the yield sensitive tech sector carrying the wooden spoon and falling fairly hard. The S&P500 continues to knock its head on the resistance line shown below, technically a test ~4000 would be an excellent risk / reward selling opportunity.
National Australia Bank (NAB) has almost doubled since its COVID lows last March, while we are bullish the stock short-term a pullback towards $22 wouldn’t surprise
NHF delivered a solid result yesterday with profits up over 4% even as revenue declined illustrating the efficiency that many companies have been forced to adopt due to COVID, theoretically good news moving forward if management keep their foot to the metal.
Its not that often that MM talks about buying a stock that’s making fresh multi-month highs but after its latest report MQG fits that profile. We are bullish both the sector and the stock and feel MQG will be trading at least 10-15% higher in 2021 plus its due to deliver nice dividends in May & November.
Minerals Resources (MIN) remains on track to make our targeted new 2021 highs with our initial target ~5-8% higher.
CTD is perfectly positioned to benefit from the global re-opening as the COVID vaccine is rolled out globally, assuming the overall market behaves itself I feel CTD will be trading at fresh 2021 highs in the coming 1-2 months.
First half result was largely pre-announced at the back end of January so EBIT at $531m came as no surprise.
First half results from Tyro, revenue fell on 1H20 being blamed on lock downs but EBITDA climbed substantially to $8.5m. Their terminals processed a record $12.1b in transaction for the 6 months, up around 10% on a 13% increase in merchants.
Underwhelming update today even against low expectations. Core NPAT at $205m was 7.6% below the $222m expected while the dividend of 15cps was pretty much in line.
