Viewpoint: Bullish
MM has been a big fan of OZL since we felt a reflation theme was the way to play equities through 2020 / 2021. We simply believe it’s the best quality stock in the copper space and after its recent 14% pullback the risk / reward looks good.
MM has been looking at ALL for a few weeks after its almost 19% correction, we like its recent consolidation as the markets floundered and feel it looks poised to make fresh 2021 highs.
Many people credit the saying “The games afoot” to Sir Arthur Conan Doyle’s Sherlock Holmes but Shakespeare in fact coined the catchy saying. However, details aside this is how I felt over the weekend as I considered how best to add value to MM’s subscribers in today’s report.
Poultry business ING is carrying a major 8.7% short position with traders concerned around FY21 numbers due to the impact of COVID. We feel this might already be built into the price and a projected 4.5% fully franked yield is attractive to all investors in today’s environment.
Investors sometimes misunderstand a hedge funds reasoning for shorting a particular stock, its rarely simply because they believe it will fall for say valuation reasons. Usually, it’s because the traders are playing a relative value scenario e.g. Buy Afterpay (APT) and sell Zip (Z1P), a position we are unfortunately on the wrong side of at present.
US stocks recovered strongly overnight with the tech-based NASDAQ only 1% below its all-time high at its best i.e. a volatile wobble this week but no reason to abandon risk assets at this stage.
Lastly Austal Ltd (ASB) which is a new one for subscribers in 2021, this leading local defence contractor is a globally recognized commercial and defence shipbuilder with its main facility in Alabama
Aristocrat (ALL) has also been on our radar following its 19% pullback from Novembers high. Unlike CTD we think ALL may have already reached its pullback target area and be a buy now.
Vale S.A. (VALE US) is a BRazillian based mining company which produces and sells iron ore, pellets, manganese, alloys, gold, nickel, copper, kaolin, bauxite, alumina, aluminum, and potash. It owns and operates railroads and maritime terminals that distribute the product.
a2 Milk Company Limited produces cow milk which is free of a protein called beta casein A1. The Company distributes in Australia, New Zealand, China, Hong Kong, Singapore, United States, and the United Kingdom.
