Viewpoint: Bullish
The ASX200 rallied another +0.6% on Wednesday basically closing smack on 7000 resistance but to adopt a corny often used phrase it was another classic game of two halves with well over 30% of the main index still closing in negative territory. Plus there were a few sectors such as Tech and Healthcare that sat on the fence, however as we’ve all seen…
Barrick Gold (GOLD US) is more than twice the size of Newcrest Mining (NCM) with operating mines & projects in more than 18 countries producing Gold & Copper. Gold has been a frustrating trade since peaking above $US2000/oz in March, and while Spot Gold is down around ~18%, Gold equities have fared significantly worse, in the case of Barrick…
At the end of October, Fortescue reported a good operational update with solid production setting up the company for another record year, however, two headwinds were obvious and these need to ease for the FMG share price to rally. Iron Ore prices have been weak as Chinese lockdowns continue, reducing the demand for Iron Ore with prices last week…
JHX was walloped -13.7% yesterday after the building materials business downgraded FY23 guidance, they are now expecting underlying earnings of $680m versus the market’s prior expectations of $730m, equating to a ~7% downgrade. Nobody ever likes/enjoys a downgrade to earnings but we feel it’s important to remember this is, not an operational…
US indices failed to hold onto all of their early gains in volatile trading as caution prevailed even after bond yields and the $US slipped lower. High Beta asset class Bitcoin, which is often regarded as an excellent leading indicator for stocks, collapsed well over 10% souring appetite for risk as investors were reminded in an unsubtle manner of the painful declines “risk assets” have endured through 2022.
CXL +0.95%: today announced a relatively small $947,035 grant by the Australian Renewable Energy Agency (ARENA) to help fund a Basis of Design (BOD) and Front-End Engineering and Design (FEED) study for a renewably powered demonstration plant for its Zero Emissions Steel Technology (ZESTY). While that is clearly a mouthful, and the amount…
The Printed Circuit Board (PCB) design platform reported stellar FY22 results in August, revenue was $221m and EBITDA $81.1m while their FY23 guidance was also significantly better than consensus which dovetails nicely with our buy underlying operational strength and avoid those that disappoint mantra for 2022, especially in the growth names.
The tough questions are the easiest to avoid but they are exactly the ones we should be asking week to week, indices are looking on track to follow our bullish view into Christmas but the Tech Sector is struggling to regain its mojo as a number of prominent companies missed their earnings expectations leading to savage treatment by the market i.e. this is definitely not a time in the cycle to catch falling knives, especially in high-value growth businesses.
US stocks enjoyed another strong session with 9 out of the 11 sectors rallying, only the Utilities and Consumer Discretionary weighed on the index. The NASDAQ finally outperformed the S&P500 by rallying +1.1% but overall it was broad-based gains that took the market higher.
SFR surged +6.6% on Monday ending the session near its intraday high, an impressive session for this high beta copper play. As we discussed on Monday we are now bullish towards copper looking for a potential test of $US400/25,000 lbs i.e. a great tailwind for SFR assuming we are correct.
