Viewpoint: Bullish
Before we bore down into some major stocks in the sector we’ve taken a quick look at the overall Food, Beverage & Tobacco index, although this contains a very diverse group of companies that rarely move as one e.g. year to date Bega Cheese (BGA) is down -42% while a2 Milk (A2M) is up +10%. We believe the risk/reward for the index is finally pretty good after a tough 2022 but clearly, it’s on the stock level where we need to identify some opportunities.
US stocks fell away this morning led by the tech-based NASDAQ which dropped by -1.45% on fears the Fed will back off on rate hikes later than hoped, either way in our opinion we are close to the end of this particular cycle although what 2023/4 holds will be determined by a range of factors.
WHC has already bounced over 13% from last week’s “washout” style low and we’ve been asked more than once where can we plan to take profit – MM went long earlier this week following the coal producers’ aggressive 30% pullback. The underlying picture for coal may have dulled over recent weeks but we feel the 30% correction was hugely overplayed. The company’s 240mn…
The ASX200 slipped for a 2nd consecutive day on Tuesday failing to embrace decent gains on Wall Street in the process, the banks were the biggest drag on the index with heavyweight Commonwealth Bank (CBA) dropping -1.8% although the broad market was weaker with almost 60% of the main board closing down on the day. The moves by CBA over…
CXL -0.82%: the green industrial solutions company hosted their AGM today with shares slightly lower on the day. There was little new news from the company today, more so highlighting progress in their technology across cement & lime, mineral processing, water purification and biotech applications. They recently completed a $60m raise, and upside…
CAJ -4.55%: the diagnostic imaging company hosted their AGM today with shares closing weaker on the session. They flagged a number of near-term efforts to drive further revenue growth including an additional 8 radiologists to be brought on by next quarter and adding a number of MRI machines to improve margins. YTD Revenue was down -1.8% though, as the…
OZL (halted): was in a trading halt today pending the announcement of a change of control transaction – a takeover in other words. As we know, BHP bid $25 a share for the Copper miner and that price was rejected without giving BHP the chance to look under the hood. Two things could be happening here:
Following on from our previous comments around ESG positioning we felt it was prudent to touch on our ACDC ETF this morning. Clearly by its restrained rally through 2022 and relatively small pullback yesterday it doesn’t move in line with the high beta lithium stocks such as Pilbara (PLS) which fell -8.7%. Morgan Stanley put out a cautious…
The advertising technology company reported quarterly earnings last week that defied some of the doom and gloom that we have seen elsewhere in digital advertising. While this is a volatile/high beta stock and shares have lived up to that reputation post results, the core metrics we like to track for TTD US continue to show a business moving in the right direction.
We added the media group to the portfolio last week as part of a broad suite of changes. The company runs across 4 segments: Broadcasting, Digital & Publishing, Stan & Domain. Its ~54% interest in Domain (DHG) is worth ~$1b, or ~30% of the group’s value. Digital & Publishing make up ~20% of revenue and had a standout 1Q on the back…
