Analysis & Opinion

Super low interest rates come with side effects

Ultra-loose monetary policy could even be counterproductive for economies. Sitting on the desk of Reserve Bank of Australia Governor Philip Lowe most days when he arrives at work are letters from the public. Many are from retirees who have one complaint in this world of low interest rates. “It’s not uncommon for people to say…

18 Share Tips – 19 October 2020

John Athanasiou, Red Leaf Securities BUY RECOMMENDATIONS The A2 Milk Company (A2M) This infant formula company has been sold down in response to the stage 4 lockdown in Melbourne causing disruption to its diagou sales channel. The company announced falling sales in September that’s likely to continue during the first half of 2021. However, we…

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…

False Positives from Company News

While most market experts would agree that news can produce upward or downward moves in stock prices, not all retail investors incorporate the nature of the news into their Buy, Hold, or Sell decisions. Unexpected global events and macroeconomic reports from governments or research institutions can drive the stock prices of entire indices or sectors…

Investor Signposts: Week Beginning 12 October 2020

Australia: Reserve Bank Governor speech and jobs report hog the spotlight In Australia over the coming week, the highlights are a speech from the Reserve Bank Governor and the October jobs report. The week kicks off on Monday when the Australian Bureau of Statistics (ABS) releases one of its relatively new indicators: “Household Impacts of…

18 Share Tips – 12 October 2020

Samuel Crompton, Shaw and Partners BUY RECOMMENDATIONS  Geopacific Resources (GPR) GPR is developing the Woodlark Gold Project in Papua New Guinea. The project is fully permitted and construction has started. Woodlark will be a standard open cut mining operation, forecast to produce about 100,000 ounces of gold a year over a 13 year mine life. The mine…

Gold mining valuations remain low

After soaring in a powerful upleg, the gold miners’ stocks have been grinding lower for a couple months now. This ongoing correction is increasingly draining enthusiasm for this small contrarian sector, working to rebalance sentiment. Gold-stock price levels relative to gold suggest this necessary and healthy selloff hasn’t fully run its course yet. But once…

Can Infant Formula Stocks Rebound?

The closing month of the third quarter of 2020 halted the upward movement of markets both here in Australia and in the US. On the last trading day of Q3 the ASX200 fell 2.29% to post both its first monthly loss since March as well as a decline for the quarter overall – dropping 1.39%….

US senate result could reverberate for decades

The US senate result could reverberate for decades if under Democrat control the filibuster goes. Any quest to alter the constitutional order would be more proof of how primary contests are destabilising US politics. Mitch McConnell, first elected to the US senate in 1984, became senate majority leader in 2015 when Republicans regained control of…

18 Share Tips – 5 October 2020

Julia Lee, Burman Invest BUY RECOMMENDATIONS BlueScope Steel (BSL) Australia’s largest steel maker is a global leader in coated and painted steel products. Housing is a key driver of steel demand. Detached housing starts in Australia were up 5 per cent in July. Government support for the building industry provides stimulus. Steel spreads appear to…