Viewpoint: Bullish
Google has made fresh 2-year lows over recent weeks but we remind ourselves of what we said back in July – “We like GOOGL with the ideal level to increase our exposure sub $US100 assuming we see another wave of bearishness wash through US stocks.” This company like many strong businesses is still at the mercy of the global economy in terms…
This household name keeps delivering even when faced with major headwinds such as economic headwinds in China and Europe leading to lower than expected sales of its new iPhone 14 but even with sales revised lower Apple keeps reporting record quarters as its product mix goes from strength to strength – each time they have an Apple Event its trending news for days as investors/customers consider their next phone, device etc.
Overnight we saw US stocks experience a choppy session swinging around after the Fed minutes but ultimately appearing to decide that the CPI numbers on Thursday are far more important. However, stocks clearly remain very nervous and a close back above 3700 by the S&P500 is required to make us feel more confident that a rally is underway.
WBC also rallied strongly on Wednesday in the wake of BOQs result finally closing up over 3.7% – our research lead Shawn discussed WBC on Ausbiz on Tuesday calling it higher into Christmas while paying an attractive 61c fully franked dividend along the way – “not a bad return in today’s environment”. We also had UBS upgrade Westpac (WBC) to a buy…
The ASX200 managed to ignore overnight wobbles on Wall Street to close marginally higher on Wednesday courtesy of a stellar session for the banks following an extremely bullish interpretation of the Bank of Queensland’s (BOQ) FY22 result – cash earnings were actually ~1% below consensus but the net interest margin was 2.5% above expectations, costs were lower while…
MM has owned this Mexican Restaurant chain that owns nearly 3,000 quick-casual eateries since March this year and while we are marginally behind on the position (-3%), the stock has been a big outperformer relative to the broader market and other sector players, and rightly so. Their performance continues to be very strong in a tough environment, with…
US indices again made fresh lows for the year overnight after failing to hold onto early gains in the session, China facing names fared the worst on heightening COVID and growth fears. Equities clearly don’t look good today as they post fresh 2022 lows but interestingly the market internals are improving e.g. we have a reduced number of stocks making new…
The ASX200 remains well above its recent lows but external influences are slowly but surely dragging the market lower as the news of a painful recession being almost inevitable in 2023 gathers momentum. The number of cogs driving the stock market engine at present is huge from the Ukraine to China, soaring bond yields and inflation to a recession looming…
ANZ has been the ugly duckling this year falling over -12% while WBC is currently up +1% and not surprisingly it’s the cheapest of the “Big 4 Banks” trading on an Est P/E of 11.2x with an Est yield of 6% over the next 12-months i.e. a theoretically higher risk and return. If we were going to switch from CBA our capital would probably find itself in Westpac, or NAB which resides in our Hitlist, as opposed to ANZ which needs to get more runs on the recovery board.
Australia’s largest bank has slipped -6% in 2022 which is a solid performance considering the weakness across risk assets plus they have paid out a $2.10 fully franked dividend in August. This is clearly Australia’s most expensive bank trading on an Est. P/E for 2023 of 16.3x. For as long as I can remember, people have been trying to 2nd guess when…
