Trends & Opportunities

Billion Dollar Companies with Price to Earnings Ratios Under 10

The stock market is not the economy. Many market experts would strongly object to the validity of that adage, pointing to multiple times throughout investing history when stock markets have declined in the face of economic slowdowns or uncertain circumstances. However, a recent opinion piece making the rounds of Australian financial news websites entitled the…

E Commerce Stocks in a Post Pandemic World

Although the Australian economy is showing scattered signs of life, the overall picture remains mixed, according to the chief economist at CommSec. While the RBA kept interest rates at the lowest level in our history — 0.25% — the bank sees a bleak future for unemployment, with the rate to rise to 10% by year…

A looming political fight due to the pandemic?

The young will want to be compensated for protecting the elderly from covid-19. But their quest will come with risks Tom Moore of Bedfordshire sought to raise 1,000 pounds to help the UK’s National Health Service cope during the coronavirus pandemic. He decided to walk 100 times back and forth across his backyard of 25-metres…

Taking a Chance on Upcoming IPOs

The optimism over a possible quick economic turnaround, the v-shaped recovery, took another turn for the worse on the morning of 30 July in the US. Although that country’s annualised GDP after the close of the second quarter came in better than expected at a drop of 32.9% versus a forecasted 34.7%, that number along…

Robots on the rise in a post-Covid world

Restrictions to curtail the spread of Covid-19 have reduced operations at factories and global supply chains have been impacted. We think factory automation will accelerate further in a post-Covid world, as machines don’t get sick and can work continuously 24/7/365, excluding maintenance. Industrial robots were installed rapidly across the global manufacturing sector throughout the 2010s,…

Mistakes can lead to investing opportunities

Most people are familiar with the saying ‘Fool me once, shame on you, fool me twice, shame on me’. Although made famous more recently by George W Bush, it’s genesis is much earlier, found in a book1 dating from 1651 that cited an Italian proverb: ‘He that deceives me once, it’s his fault; but if…

Gold stocks blast higher

The gold miners’ stocks are blasting higher, just achieving major new secular highs!  Traders are flocking back to gold stocks as the metal they produce relentlessly advances on strong investment demand.  That is atypical during market summers, but the pandemic has made for unprecedented times.  This gold-stock upleg is big, but doesn’t look excessive yet. …

Waste Management and Recycling Stocks Trending Down

The trading week beginning on 13 July saw bewildered investors treated to another round of a confusing mix of good news and not so good news. With our heavy dependence on exports to China, the headline “China economy: Coronavirus comeback kid” ignored the not so good news buried within. On the positive side, GDP growth,…

Huawei’s window of opportunity closes

When the United Kingdom completed its telecom supply chain review last year it gave a green light to Huawei by concluding that nationality-based bans did nothing to improve network security and could actually harm it by weakening competition. Executives at Huawei celebrated what they saw as a victory for evidence-based decision-making. The decision also seemed…

Under the Radar Stocks

Former chairman of the US Federal Reserve, Alan Greenspan, is credited with coining the term “irrational exuberance” in a speech in the midst of the early days of what would morph into the dot.com bubble. The term is now widely used to describe “widespread and undue economic optimism.” Irrational exuberance can seduce investors into ignoring…