Trends & Opportunities

FUND MANAGER INSIGHT: Resource stocks the funds are targeting

The last couple of months have been fairly hairy for investors as resource stocks have sped up and down the charts in response to commodity prices swings. As you can see from the table below, the S&P/ASX 300 Resources index has tumbled by 8.6 per cent over the past three months, performing a tad worse…

BROKER BUYs: upgrades from brokers Australia-wide

OM Holdings (OMH) Closing price $1.025 Weekly change $+0.135 % change +15.1% Broker Calls Macquarie – BUY Euroz – BUY RBS – HOLD CHART Chart: Share price over the year to 08/07/2011 versus ASX200 (XJO) The decision by manganese business OM Holdings to cancel plans for a listing on the Hong Kong sharemarket is a…

Does JB Hi-Fi deserve the title of the no.1 shorted stock?

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…

Australian Banks Exposure to Mortgage Household Debt – A Bubble Ready to Burst

She’ll be right, mate.  The phrase embodies the ingrained response of Australians everywhere to things gone awry. When the Great Financial Crisis (GFC) engulfed most of the western industrialised world, Aussies looked around and in unison uttered that phrase – She’ll be right, mate.”  And lo and behold, Australia survived the GFC better than any…

FUND MANAGER PERSPECTIVE: Hit on A Ten-Bagger Microcap Stock

If you haven’t got a healthy appetite for risk, you just might want to pass on microcap stocks – the moniker for stocks with a market value of less than $250 million. As microcaps are generally newer companies – some newly listed on the exchange – it’s hard for investors to get reliable information about…

Fund Manager Perspective – smaller companies for value investors

Some fund managers look for “bargain priced” value stocks; others look for growth, speculating on expected increases in earnings. And some fund balance value and growth. The Invesco Smaller Companies Fund takes such a balanced approach. According to lead portfolio manager Cynthia Jenkins, “The team’s fundamental approach seeks to identify mispriced and often undiscovered companies…

Modern Gold-Digging: From Prospecting to Prospectus

After gold’s stellar run over the past decade from $275 to $1,500 an ounce, many investors who were slow to get on board are kicking themselves over missing the boat.  However despite the recent volatility and a raft of downgrades to forecasts for commodities prices, many analysts are still gold bulls. HSBC analyst Jim Steel…

The Energy Sector – An Uncertain Future

A nuclear energy crisis of global proportions. Political turmoil in the Middle East. Floods in Queensland’s coal country. Each of these largely unpredictable recent events has shaped the energy sector, both in the short-term and the extended horizon.  Joseph Stanislaw, an independent senior adviser on energy issues to Deloitte, observed that “in the past year…

Attractive Term Deposit Rates For The Taking

What a difference a few weeks can make to capital markets: As recently as January, economists and analysts alike were expecting two, possibly three hikes to the Reserve Bank of Australia’s (RBA) current interest rate of 4.75 percent later this year. Fast forward to early April and there was no one holding their breath for…

Opportunities In Australia’s IT and Telco Sectors

The IT sector in Australia – including software, hardware, semiconductors and related services – is dominated by foreign companies. Taking advantage of a highly skilled workforce and superb research infrastructure, global IT powers such as IBM, Canon, Cisco, Google and Infosys have built facilities Down Under for product development, digital content production, and technical assistance….