Viewpoint: Bullish
As mentioned previously the UK FTSE rallied 1% overnight taking the index to within 1% of its post COVID high and only 1.6% off its all-time high making it hard to argue a bearish stance for the index which is historically highly correlated to the ASX200.
AD8 +0.57%: a positive sales update from the Audio-Visual hardware & software company failed to really ignite the share price. Audinate now expects revenue of over $US30m in FY22 after positive momentum in March & April continued throughout May. The guidance sits at least 5% above consensus expectations for the year and shows the company has continued to navigate short supply in the…
The Euro has been one the weakest currencies through 2022 which is understandable considering the conflict raging in Eastern Europe but the downside momentum has clearly waned after the FX held its long term 1.03 support level, there are no buy signals yet but we couldn’t be short and our preferred scenario is we see a test off 1.10 over the coming months i.e. back to the mid-point of the last 6-years.
A quick glance at the US market whose EOFY is on September 30th shows that the tax man has relatively little impact on the core indices themselves with moves far more noticeable under the hood, although both the ASX200 and S&P500 do appear to fall for the last few weeks of their respective financial years.
Most of us have been guilty at least once for changing our spending habits in June as we start considering the EOFY, I know my “Tradie” friends adopt an if in doubt buy it attitude this time of year to avoid paying too much tax for the FY. Similarly in the stock market, around this time investors usually start considering putting the broom through their portfolios with positions that are showing decent losses for the financial year…
Rail freight business AZJ rallied 2% yesterday in a falling market as its recognition as a defensive stock helped it add to its strong performance through 2022. The stock remains fairly cheap following a woeful few years, it’s trading on an Est. P/E of 15.2x for 2022 while a projected 5.7% yield over the next 12-months is very attractive, although it’s only partly franked. This Australian industrial company has…
MM has discussed WDS a couple of times over the last 48-hours and our view proved on point yesterday with the newly structured petroleum business rallying +5.2% to be the best performer in the ASX200:
US stocks slipped lower overnight following strong economic data but the pullback by the S&P500 wasn’t significant in terms of the advance from May’s 3810 low. We still believe the next 10% move is on the upside but following the sentiment sapping drop since November, it’s likely to be choppy as opposed to explosive on the way up. Interestingly the volatility index (VIX) fell -1.9% overnight, not the usual move…
Transurban (TCL) has enjoyed 2022 as the defensive stock has ridden the “risk-off” theme, although MM believes the market is positioning itself for a decent bounce over the coming months we so no reason to abandon our position due to relatively short-term swings. MM went long TCL into the COVID inspired weakness over 2-years ago and while dividends have been lower over that time, a healthy ~25% capital gain to date and…
Brunswick is the biggest recreational boating company in the world owning brands like Mercury, Bostan Whaler & Bayliner to mention just a few, however, their reach is significant ranging from propulsion to finance & insurance. We bought BC US about a year ago and the stock has declined since with the position sitting on a ~28% paper loss which begs the question, what should MM do? There are two competing factors at play…
