Viewpoint: Bullish
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.
LYC -0.47%: the rare earth minerals business announced they had secured a $US120m contract to build a processing facility in the US in partnership with the US Department of Defence. The deal fully funds the construction of the facility that provides the US with access to supply of the critical minerals essential for manufacturing a range of military tools as well as electric vehicles and wind turbines. The market is currently…
QAN was recently added to UBS’s best stock ideas list with the belief that COVID induced capital disruption is almost in the rear view mirror with a return to free cash flow into the next FY. Arguably most importantly QAN trades at a ~10% discount to global airlines which MM doesn’t believe is warranted although with the cost of living soaring in Australia and a new Labor government the unions might become an issue moving forward.
Sydney based insurer QBE is a stock many investors love to hate which is no great surprise considering it was trading above $35 before the GFC but we all know it’s a beneficiary of rising interest rates, the question is has it become expensive compared to many other battered stocks/sectors. MM has described the stock as a “serial underperformer” in the past concerned about the ‘black box’ nature of its…
SSG +4.9%: a positive update for the personal care retailer today help the stock edge higher, outperforming a weak market. With just one month left in the financial year, LFL sales are running at +3.7% YTD vs FY21, and nearly +28% higher than pre-CVOID, FY19. More than half of gross profit is said to be coming from products exclusive to Shaver Shop, helping to support both demand and margins. With just a few weeks….
PDN surged +13.5% yesterday after Joe Bidens plans to reduce their reliance on uranium supply by buying enriched uranium from US producers also helping the local economy in the process. Clearly positive acceptance of nuclear power at any level is good news for uranium miners such as PDN, the news out of the US feels like the start of an improving backdrop for the sector which could see PDN at least challenge…
ALX +16.2%: the toll road owner & operator was one of the top performers today after IFM Infrastructure Fund revealed they had taken a significant stake overnight. Around 15% of the company changed hands at $8.10, ~14% above yesterday’s close as the $181b global fund edged in. Atlas was expecting…
Yesterday, Apple held its first in-person event since the start of the pandemic, announcing that it was entering the Buy Now Pay Later space in the US, along with some changes to the MacBook and an update for the iPhone lock screen, essentially allowing a greater level of customization. While all this is interesting to think about, the main driver of Apple is iPhone sales – they are essentially an iPhone company, and this is the way that…
STA +7.35%: another positive progress update for the junior mineral sands hopeful puts them on track for production before the end of the year. With their Coburn project in WA, Strandline are hoping to capitalize on strong mineral sands prices that are currently running around 35% higher than the feasibility study had priced in. On track and on budget is the message from the company and we expect shares to track higher given cashflow is now months away.
