Viewpoint: Bullish
ALL +6.74%: A tough day to bring out a good set of results, however, that’s exactly what ALL did and they still managed a solid session despite the overall market weakness. For 1H22 they produced adjusted net profit after tax of $580.1m which was up 42% year on year while they announced an interim dividend of 26cps. The composition of the result was strong and was well ahead of market expectations across the board, in the vicinity of…
BHP +3.18%: The divestment of BHP’s oil unit is getting closer to completion and by extension the dividend returns to shareholders. Acquiror, Woodside Petroleum (WPL), received a final regulatory approval (National Offshore Petroleum Titles Administrator) on 17 May, the only outstanding condition now for the merger is Woodside shareholder approval, which is set for 2022 AGM on 19-May-22 (tomorrow). Based on the agreed merger…
We are buying IGO Ltd (IGO) into recent weakness. We feel the uncertainty around the WSA deal and pullback in battery facing stocks is providing an excellent opportunity to buy into IGO.
APA has been a solid performer in the Income Portfolio sitting on a paper profit of ~35%, which for a regulated utility involved in gas pipelines where revenue growth is set at low levels is a good outcome, however, we ask ourselves what is going to drive appreciation from here?
US stocks enjoyed a strong session overnight with the major indices advancing over 2% putting last weeks panic low in the rear view mirror , at least for now. The buying was most noticeable in some of the beaten-up tech stocks including Amazon Inc (AMZN US) +4.1%, Tesla (TSLA US) +5.1% and JD.Com +4.2%. While we aren’t convinced the markets have seen a meaningful low we have definitely migrated to a “buy the dip” stance looking for decent market strength over the coming weeks.
CXL +4.21%: Announced today that they (along with Pilbara Minerals (PLS) had received a $20m Government grant under the Modern Manufacturing Initiative – in short, CXL will help to decarbonise the electrification pathway as Australia positions itself to ‘value-add’ in the production of key commodities. CXL is a very difficult stock to value which makes it heavily exposed to sentiment shifts – in early March shares were $6.12 before rising…
GMG –0.61%: Opened firmly this morning after they reconfirmed FY22 guidance for earnings per share (EPS) growth of 23% which was inline with current market expectations, however, the stock tapered off throughout the session. In terms of commentary, Greg Goodman talked up the opportunities for GMG as the environment gets more challenging, saying that this environment suits “older heads” such as his. To give some context…
BXB +11.22%: the logistics business confirmed it was engaged in takeover discussions with private equity outfit CVC today. Talks are in preliminary stages but media reports are suggesting a $13.9b bid is in play for the pallets business. Brambles has been searching for ways to unlock value in the business, recently completing a sizable buyback and looking to transform…
A quick visit to the petrol station shows us that crude oil prices remain elevated and with a weak $A its even more painful for local motorists. The crude oil price may have backed off from the panic highs of mid-March, when Russia invaded the Ukraine, but they remain clearly comfortable well above $US100/barrel, still at their highest levels in 8-years. The Global Energy Sectors made fresh highs last week as oil prices rallied above $US110…
ORI was the strongest stock on the main board yesterday rallying +4.7% on a day when almost 15% of the index fell by 5%, the explosives company delivered a strong half-year result with the business enjoying a 25% lift in revenue. Strong commodity prices have understandably pushed up demand and although this tailwind may diminish over the next 12-months, operationally the business is improving across the board which should encourage investors.
