Analysis & Opinion

18 Share Tips – 27 September 2021

Chris Batchelor, Spotee.com.au BUY RECOMMENDATIONS AVA Risk Group (AVA) The company announced the sale of its services business and a capital return to shareholders of 16 cents a share. The existing technology business was recently trading on an undemanding price/earnings multiple of about 11 times. Revenue and other income grew significantly in fiscal year 2021,…

Interest Rates

At its 7 September board meeting the RBA announced a hike in the cash rate before 2024 is unlikely. The rationale for the decision was inflation within a range of 2 to 3 percent, which the RBA does not anticipate happening any time before 2024. On the economy the bank sees a slowing economic recovery,…

Space exploration is going private

The commercialisation of space comes with unknown promise but known risks Neil Armstrong landed on the moon in 1969 and delivered his pre-prepared line that became famous: “That’s one small step for man, one giant leap for mankind.” Except he misspoke. What Armstrong said was nonsense. He meant to say “a man” rather than just…

Consumer Spending Research Bullish for eCommerce

It might seem like an eternity since the world began to heave a sigh of relief on 9 November of 2020 as global pharma giant Pfizer announced its COVID 19 vaccine candidate was found to be more than 90% effective in preventing COVID. At that time Australians could take some pride in the stellar performance…

Emerging markets time to shine

As COVID-19 battered the world’s economies last year, emerging markets were among some of the hardest hit; they also saw one of the better recoveries when equity markets rebounded towards the close of 2020. This strong recovery has hit a few headwinds though, with fresh or continuing waves of COVID-19 putting differing levels of pressure…

18 Share Tips – 20 September 2021

Peter Day, Sequoia Wealth Management BUY RECOMMENDATIONS Macquarie Group (MQG) This well managed group offers a diversified global business model. MQG has a strong balance sheet. It has tens of billions of dollars in equity and assets under management. The company is poised to grow in a global low interest rate environment. Positive momentum favours…

BHP Makes Some Big Moves

Divestment is a term known to stock-pickers everywhere. When a holding or a prospect in an investor’s portfolio “divests,” or sells off one of its assets, the divestment can be a market mover, for good or bad. Be it a subsidiary company or interests in another company or an operating asset or one with profit…

18 Share Tips – 13 September 2021

John Anderson, Bell Potter Securities BUY RECOMMENDATIONS Aristocrat Leisure (ALL) Aristocrat generates revenue from leasing and selling poker machines to venues. It also continues to invest in expanding its digital gaming pipeline. It has a dominant market position in North America. Aristocrat is included in our top 10 recovery stocks post COVID-19. The share price…

Could a gold-stock reversion be due?

The gold miners’ stocks are still languishing deeply out of favor, largely left for dead. Their low prices are collateral damage from this past summer’s anomalous pair of extreme gold-futures-selling episodes on Fed-tightening fears. But this bombed-out sector is due for a major mean reversion higher. Gold stocks’ technicals, sentiment, and fundamentals are all aligned…

Vital Signs: the Greens’ super-profits tax idea

Earlier this year, the Australian Greens proposed a wealth tax on billionaires straight out of the (former US presidential candidate) Elizabeth Warren playbook. This week it added what it called a “tycoon tax” that would tax so-called super-profits made by companies with annual turnovers of more than A$100 million. It might not be the winner…