Viewpoint: Bullish
Wednesday saw the ASX200 manage to shrug off weakness across US indices and instead focus on a healthy Asian region, it’s been a while since local stocks went looking for good news but two consecutive 0.25% rate hikes by the RBA when many expected/feared 0.5% moves appears to have been just the required tonic to awaken the bulls. Admittedly the market felt tired yesterday morning as it tested the psychological 7000 level and we shouldn’t disregard how far it has rallied in just one month:
STA +2.47%: the company’s Coburn project in WA is up and running, announcing that the first ore has been put through the wet concentrator. The minerals sands operation looks set to deliver its first shipment early next calendar year as the company works to finalize the mineral separation plant to further process ore. While Coburn continues to hit targets, the company is also working on developing two projects in Tanzania which could add further value.
GMG -3.06%: The integrated industrial property group gave a 1Q trading update this morning reconfirming prior guidance as is customary so early on in the year for EPS growth of 11% and a distribution per security of 30c. They did highlight the challenging environment which is likely why the stock was down, although bond yields also ticked higher today which hit the property sector more broadly. Key comments made in today’s update were…
This week, Exxon Mobil reported the strongest-ever quarterly profit in its 152-year history and soon after, President Biden called for a levy tax on energy companies if they don’t use these high profits to bring down energy costs for consumers. While the stock prices didn’t really react to the news, this is a risk for energy companies around the globe as Governments grapple with the…
We sat down with management this week after a very volatile October to try and get a gauge of how the company is tracking through the noise. They raised $60m through an institutional placement a few weeks ago at $4.55/sh following a transformative deal with Heidelberg Cement. Calix has already successfully implemented its technology in a trial plant and is working through…
On face value, the toll road operator is a solid defensive stock, offering a reasonable ~4%, largely unfranked yield while their high levels of debt are seen as a risk in this sort of interest rate environment, however, there is more to this story which underpins our positive view on the stock. Growth in earnings and therefore dividends will be strong over the next 5 years with…
Last week ANZ was the 1st bank to report which led to some significant volatility in the stock as people initially focused on the negatives but yesterday after investors considered things further it closed just a few cents below its 6-month high – we felt the result was solid and next week’s 74c fully franked dividend is likely to catch many yield-hungry…
Its not often that we look at the Dow Jones because it only contains 30 stocks hence making it only an average gauge of weakness/strength in equities but it caught our attention this week as a number of its companies traded to all-time highs, not what we’ve been used to in 2022. Clearly the more industrially focussed companies are still performing, more…
US indices failed to hold onto gains as investors appeared to get nervous ahead of the Fed following data showing the labour market remains very strong. The resilient jobs data heightened speculation that the Fed could remain aggressively hawkish even in the face of a potential recession, interestingly it was the 26th time the S&P500 surrendered a gain/loss of 1% in one day, the most since the GFC illustrating the current levels of uncertainty.
Diversified miner BHP has noticeably outperformed both FMG and RIO through 2022 and we won’t be fighting the trend until iron ore shows signs of bottoming i.e. BHP is a lower Beta play towards the bulk commodity with Iron Ore contributing around 50% of its revenue, noting their 4 diversified pillars that have a greater focus on decarbonisation than…
