Viewpoint: Bullish
Overnight we saw US stocks struggle following ongoing hawkish comments from the Fed and likely trepidation ahead of tonight’s important US unemployment data i.e. US Non-Farm Payrolls which captures ~80% of their workforce. We still wouldn’t rule out another foray towards 3550 by the S&P500 but following its 26% correction this year we believe the risk /reward has swung around in favour of the buyers.
The ASX200 had a quiet Thursday, especially when compared to the previous two sessions, the index closed up less than 2-points with losers actually slightly outnumbering the winners. Another strong performance by the Energy Sector managed to edge the index higher but outside of the likes of Whitehaven Coal (WHC) and Woodside Energy (WDS) it was a relatively uneventful…
NWL is a business that can be described as a mixture of tech and investment management services both of whom have been in the “naughty corner” of late but as markets attempt to stabilise we believe the stock is poised to recoup a decent portion of its 45% post-COVID decline. While the stocks not cheap it is the country’s fastest growing platform provider having…
GMG has certainly experienced a year to forget so far but we still feel it remains a quality business that is offering excellent value around $17. The stock has certainly been under pressure from overall concerns towards both the Property Sector and growth stocks generally but in our opinion, the elastic band has become very stretched and a snap back is very close at hand, if not already underway.
Google has become a household name in Australia just 20 years after it launched with just one employee in a loungeroom, today it has over 2000 employees having comfortably overtaken the early entrant Yahoo. This business has evolved significantly from just being a search engine and we believe both its prospects and valuation are exciting around $US100.
Overnight we saw US stocks struggle early in the session falling almost 2% but over the last few hours these losses were mostly recovered and the broad-based S&P500 closed down just -0.2%. The recovery by the US indices hasn’t been as dramatic as by our own ASX which has been partly fuelled by the RBA’s cautious approach to rate hikes this week i.e. a 0.25% hike on Tuesday as opposed to another 0.5% sledgehammer style move.
The Australian Tech Sector enjoyed another strong session on Wednesday finally closing up +3.9% but when we consider its 46% plunge in less than 12 months it remains a mere drop in the ocean – we are looking for another +15% upside minimum although over 20% wouldn’t surprise us. Obviously, as we’ve seen over the last few days for this view to unfold markets probably need…
The ASX200 enjoyed another major “risk on” session on Wednesday, we even saw weakness in the US futures ignored throughout our day session as small intra-day dips were bought before they hardly started – no great surprise to MM when we consider how bearish investors & fund managers had become. Readers should remember that last month’s Bank of Americas Fund Managers…
NEXTDC operates nine data centers across Australia, with a further two in development, counting major global companies as their customers including Amazon, Google, Microsoft and Oracle. The demand for data storage continues to soar and is a strong tailwind for NextDC. Energy is a key cost, it takes a lot of power to keep the centers running, and higher costs here…
Investment bank MQG has tumbled over 30% in sync but the magnified manner to the local market which has declined less than 16% i.e. cementing its position as a classic high beta stock. Over recent weeks we have been considering buying NAB, which resides in our Hitlist, but considering the comparative pullback by MQG we now believe it offers better value – they both trade ex-dividend in November with Macquarie forecast to pay $2.75 part franked putting it on a yield of around 4.1%.
