Viewpoint: Bullish
MM holds VOC in our Growth Portfolio, a position that’s looked after us since our purchase last August. We remain bullish looking for another ~10% upside but if we are long TLS at the time we are likely to consider taking our money if this move does unfold. The 2020 Financial Year was the 1st in the companies 3-year plan to turnaround the telco and the business delivered reoccurring revenues of $1.75bn with earnings expected to grow this year, the stock trades on a fair valuation considering its outlook and value of its underlying assets but above recent highs it won’t look compellingly cheap.
After weeks of consolidation TLS got the proverbial bit between its teeth yesterday rallying almost 3%. As we discussed in the afternoon report the stock looks good technically with our first target ~20% higher. At MM we believe Australia’s major Telco is in a major turnaround phase resulting in us being bullish on the inherent value that can be unlocked in a restructure. Read yesterday afternoons report for a re-hash of the rationale we put up when we bought the stock late last year in the income portfolio at $2.88, nothings really changed and while it takes a while to turn an oil tanker around this one appears to have some traction coming through.
Amazon.com, Inc. is an online retailer that offers a wide range of products. The Company products include books, music, computers, electronics and numerous other products. Amazon offers personalized shopping services, Web-based credit card payment, and direct shipping to customers. Amazon also operates a cloud platform offering services globally.
Vocus Group (VOC) owns and operates independent voice and data networks. The Company offers a range of products encompassing both voice and data to clients in the United States, China, Hong Kong, Singapore, Australia, and New Zealand.
Whitehaven Coal Limited operates as a coal producer. The Company mines and sells metallurgical and thermal coals to the global steel, power generation, and metallurgical industries.
As we said a few days ago “enough is enough for gold” on the downside, MM is now bullish looking for 10-15% upside. Overnights $US30 rally aided by the Greenbacks continued weakness hopefully is the start of another leg higher for the commodities complex – MM is long the Resources Sector across all of our portfolios!
The Australian Dollar surged towards 80c yesterday after the governments Josh Frydenberg announced they were remaining “all in” to get people back to work:
Corporate Travel Management (CTD) offers corporate travel management services. The Company operates on a fee for service model and provides business travel advice and services, bookings, ticketing, and ancillary services, and offers travel data diagnostics and recommendations.
A slight deviation from the theme but we are open-minded to both stocks and sectors, in this case we like this private health insurer into 2021. This insurer should benefit from the major COVID improvement as elective surgeries play catch up and people reconsider health cover now it actually offers far more value to those who opt for it, as opposed to during the pandemic when many surgeries were obviously unavailable.
IGO surged over 25% on Friday after securing the funding to stage its entry into the lithium sector – another classic case of bullish surprises being with the uptrend, in this case the breakout by resources. This nickel producer managed to raise over $700m last week at $4.60 for its foray into lithium, not bad buying for the instos after its closed almost 40% higher on Friday!
