Viewpoint: Bullish
JBH has been a star performer over the last 2-years although its only rallied 22% over the last 6-months and keeps failing to break clear of the low $50 resistance area. The company delivered strong sales for the first half of this financial year with online sales up more than 160% offsetting much of damage caused by store closures during COVID. However, with the stock still hovering just above $50 it feels like these record sales were no surprise to investors making me think of “buy on rumour & sell on fact” hence we like the stock but wouldn’t be chasing at current levels, just yet at least.
The likes of RIO Tinto (RIO) and Fortescue Group (FMG) have corrected ~8% in recent weeks even while iron ore has r emained firm, no great surprise considering their explosive rally since November. A further 5% pullback and we feel these stocks will look again very attractive with aggressive upgrades to earnings and dividends likely to flow through the market if the bulk commodity can maintain current levels i.e. the market is pricing in lower iron ore prices not current, or even higher levels.
JB Hi-Fi (JBH) is a retail network of more than 300 stores across Australia & NZ, as well as online offering selling home entertainment goods and electronics. It operates the JB Hi-Fi & the Good Guys brands.
Abacus Property Group is a diversified property investment group providing exposure to a portfolio of Commercial Office and Self Storage real estate.
Sandfire Resources (SFR) operates as an exploration company. The Company explores and mines copper and gold resources. Sandfire Resources serves customers in Australia.
De Grey Mining Limited is an exploration and mining company focusing on zinc, gold, platinum, silver and base metals.
AVITA Medical is a regenerative medicine company focused on the development and commercialization of innovative therapies with the power to transform lives. Harnessing the regenerative properties of a patient’s own skin, AVITA Medical’s RECELL® System was approved by the U.S. Food and Drug Administration (FDA) in September 2018.
Wisr (WSR) provides personal and business lending services. The Company offers secured and unsecured personal loans for various purposes including debt consolidation, buying a new and used vehicles, home furnishings, renovations, travel, and wedding. Wisr serves customers in Australia.
in just two trading days Bitcoin had corrected almost 30% to both confirm and reiterate MM’s view that 2021 will be a year characterised by elevated volatility, the subsequent 20% bounce this week looks bullish and maintains the escalated volatile environment. Most importantly the rally this week demonstrates why MM remains far more comfortable buying risk assets into pullbacks as opposed to picking tops as the Fed et al push investors up the risk curve with their zero-interest rate policy.
Here’s a brave and hopefully not stupid call considering the last week – MM believes Bitcoin is likely to rotate between 30,000 and 45,000 in the following months, another net bullish read through for stocks.
