Viewpoint: Bullish
In line with most of its peers CXO has now halved from its April high as investors have unceremoniously fled from yet another speculative pocket of the ASX. CXO has already entered into a binding offtake arrangement with Tesla (TSLA US) to supply 110kt of SC from its Finniss Lithium project over the next 4-years. Encouragingly the company already has offtakes in place with Yuaha and Ganfeng again both over 4-years.
The combination of solid fuel demand, the successful acquisition of Z Energy and higher refining margins in 1H22 helped lift ALD to fresh post-COVID highs in recent weeks, a rally that was particularly noticeable in a falling market. MM likes the refining sector with ALD our preference over Viva Energy (VEA) although they both look destined for fresh 2022 highs in the not too distant future.
Dove-tailing from MM’s Battery Minerals webinar, we thought it was prudent to look at lithium exposure in the portfolio. Pilbara is sitting on 9-month lows now, trading near 50% below all-time highs. In such a volatile space, we think it’s best to keep it simple, something that Peter O’Connor explained well in the video. Pilbara (PLS) has a resource in the ground, the infrastructure in place to bring that to market, a strong balance…
lululemon athletica inc. is a designer, distributor and retailer of lifestyle inspired athletic apparel and accessories. The Company’s segments include Company-operated stores and direct to consumer. Its apparel assortment includes items such as pants, shorts, tops, and jackets designed for a healthy lifestyle, including athletic activities such as yoga, running, training, and other sweaty pursuits. It also offers fitness-related accessories. Its Company-operated stores include approximately 600 stores in 17 countries. Its retail stores are located primarily on street locations, in lifestyle centers, and in malls. Its direct to consumer segment includes electronic commerce Website www.lululemon.com, other country and region-specific websites, and mobile applications, including mobile applications on in-store devices. The Company also conduct business through MIRROR, which offers in-home fitness through a workout platform; operate outlets and temporary locations.
MM has been looking for a period of outperformance from tech stocks in recent times which hasn’t yet materialised primarily because the whole markets dropped together but we continue to see the occasional glimpse that tech names are encountering some bargain hunting:
You only have to walk into a mine to feel the raw energy being used and NCM is no exception, but the predominantly gold play is far more correlated to the sentiment towards precious metals and the $US, especially over the short to medium term. This is one sector of the ASX which looks particularly good today aided by its often perceived safety status – we can see NCM rallying 10-20% over the…
The Telco Sector only slipped -0.2% yesterday making it the best on ground in the space with heavyweight TLS rallying by over +2% and TPG by +0.9%. We remain bullish both of these household names regarding any market-based weakness as a buying opportunity e.g. TLS is already 6% above its Tuesday low. Both stocks pay a decent dividend, have the ability to raise prices if required and are reasonably insulated to an economic…
With inflation-led volatility taking hold of markets, gold needs to be considered in portfolios as a hedge. Gold equities are trading at deeply discounted values and the gold-oil ratio is trading at extreme levels at ~15x, an elastic band that will snap back at some point. Regis Resources (RRL) is our pick of the mid-cap gold stocks. They recently upgraded their resource and will likely continue to do so with ongoing drilling…
XRO rallied over 7% from its open yesterday and we’re sticking to our short-term bullish call that XRO can break back above $100 over the coming months, if MM wasn’t already long MM would be buying this morning.
