Analysis & Opinion

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…

18 Share Tips – 6 September 2021

John Athanasiou, Red Leaf Securities BUY RECOMMENDATIONS Flight Centre Travel Group (FLT)  The progress of corporate and leisure travel in the northern hemisphere has been most encouraging. Flight Centre is poised to be one of the biggest beneficiaries of this encouraging trend once Australia opens up more to increasing domestic and international travel. The share…

Double Digit Earnings Losers with Double Digit Earnings Growth Forecasts

Twice a year Aussie investors who pick their own stocks run the gauntlet of earnings season. Full Year and Half Year Financial Results open the door for big and sustained gains or losses. To add to the mania there is the strong possibility the gains or losses will be fleeting, evaporating within days. As is…

Why Coles and Woolworths are using robot warehouses

As lockdowns continue across Australia, many households are doing something they may not have considered just 18 months ago: ordering groceries online. Australia’s supermarket duopoly, Coles and Woolworths, have raced to implement new technology and transform labour arrangements to keep up with the e-grocery boom. Both are investing in “smart” warehousing and distribution systems with…

Lessons learned over the past 12 months

As we head into the new financial year, we feel really excited by the stocks and exposures we have in both the long and short book. However, if FY21 has taught us anything it is to keep an open mind and learn from where we got things wrong. After contributing 270bps of alpha for the…

52 Week Highs that Could Go Higher

When an attractive stock on a retail investor’s watchlist hits a 52 week high, the question to answer is will it go higher. Of the many newcomers to share market investing in the recent past, those who have gone beyond social media to learn how stock markets work have surely encountered a prevailing strategy for…

18 Share Tips – 30 August 2021

Philippe Bui, Medallion Financial Group BUY RECOMMENDATIONS XRF Scientific (XRF) The company makes and markets precious metal products, specialised chemicals and instruments for the scientific, analytical and mining industries. Fiscal year 2021 net profit after tax was up 64 per cent on the prior corresponding period to $5.1 million and revenue rose 8 per cent…