Analysis & Opinion

18 Share Tips – 25 May 2020

John Athanasiou, Red Leaf Securities BUY RECOMMENDATIONS Dropsuite (DSE) Chart: Share price over the year This global cloud software company increased its annualised recurring revenue by 15 per cent to $6.01 million in the previous quarter, while also diversifying its client base. If DSE continues to grow annualised recurring revenue at this pace, the shift…

Top 30 shorted stocks

The technique of profiting from a price fall is called short-selling, otherwise known as “shorting,” “to go short” or simply “short”. Basically, short-selling is the reverse of how we’re traditionally taught to invest, to buy at the lowest possible price and sell at the highest. When shorting, you aim to jump in at a high…

Oil prices jump on signs of higher demand

US crude prices have reached their highest price since March, on strengthening fuel demand as countries around the world eased travel restrictions they had imposed to curb the spread of the coronavirus. US crude gained 19.7 per cent last week and Brent crude rose 5.2 per cent after a week of bullish news. Both contracts…

A Contrarian View of the Buy Now Pay Later Sector

Bullish investors gleefully ploughing money into global stock markets were given a wakeup call on the morning of 13 May when a leading US-based hedge fund manager called the current stock market the most overvalued since 1999 right before the dot.com bubble popped. This was the second contrarian warning from a key US player this…

18 Share Tips – 18 May 2020

Michael Gable, Fairmont Equities BUY RECOMMENDATIONS James Hardie Industries PLC (JHX) Chart: Share price over the year This building products maker has rallied strongly in the past few months as the market starts to factor in economies gradually opening up sooner than expected. The company has a strong balance sheet and is expected to maintain…

18 Share Tips – 11 May 2020

Tom Bleakley, BW Equities BUY RECOMMENDATIONS Phoslock Environmental Technologies (PET) Chart: Share price over the year Phoslock uses CSIRO technology to clean waterways. The technology treats drinking water reservoirs and other catchments by removing phosphate and reducing harmful algae. PET has a global sales pipeline of $380 million between fiscal years 2021 and 2023. Phoslock…

Thinking straight in a troubled economy

As markets rally in the face of deep uncertainty, while central banks prop up asset values in the name of maintaining liquidity, straight thinking has become rarer than ever. Fortunately, there are still attractive investments for those willing to stay disciplined and seek out enduring value. ‘Think straight, talk straight’: the motto of Arthur Andersen….

Will gold continue to shine?

The gold price has risen 12% over 4 months, making the precious metal one of the best performing asset classes so far this year. Perhaps more interestingly, the correlation between gold and equities has turned positive for the first time since mid 2019, calling into question its diversification benefit in multi asset portfolios. However, we…

5 dividends questions answered

Q1: What’s likely to happen to company dividends post the onset of COVID-19? Dividends are the cashflows that a company elects to pay out to its shareholders as a reward for holding the shares over time. We hope that if they are good, growing businesses, companies can pay from their profits. They can also dispose…

Covid-19 tearing at the fragilities of Italy and Eurozone

Solutions to appease the crisis face political hurdles. A default or euro exit are possible. ‘il Boom’ is how Italians describe the ‘great transformation’ of Italy over the 1950s and 1960s when a poor country turned itself into a modern industrial powerhouse with a stable currency, the lira. During those decades, rural southern Italians flocked…