The Good Morning Report – 13th December

The latest market news, commentary and strategy by Adrian Rowney 

Today's Report proudly sponsored by:


Safe and effective!

5 Things that Grabbed my Attention

1. US house just voted to ban imports of enriched Russian URANIUM....Hilarious if it gets through the Senate as utilities will then be forced to buy the same Russian URANIUM off other countries at a significant premium.

2. Bloomberg headline: "The  World's  Copper  Supply  is  Suddenly  Looking  Scarce".

3. I'm adding DGL (DGL) to my BUY list - last sale $0.77....the stock has fallen from a high of $4.08.

4. More mega M&A in OIL/GAS...This time Occidental Petroleum is buying CrownRock for $12bn. Cheaper to buy than build.

5. OIL prices were down again overnight and have fallen for 7 weeks in a row despite big production cuts from OPEC....I think this weakness will be temporary and I'm still anticipating a major OIL SHOCK over the coming years.

ASX Market Update

ASX 200 up 36 points to 7635

DGL provides chemical manufacturing, transportation, storage and recycling across Australia. The stock looks cheap - it's down about 80% from its record high of $4.09 in April last year and is trading at a 33% discount to NTA of $1.17. Pretty rare to be able to buy a strong ongoing concern significantly below replace cost. BUY last sale $0.77

DGL has over 4000 clients spread across just about every major industry you can think of:


DGL have been consolidating a very fragmented industry. They don't use slippery investment bankers either to complete deals - big tick for that!!

Growing regulation of chemical usage will make it harder for new entrants to come along and compete with DGL's vertically integrated model.

Founder and CEO Simon Henry owns over 50% of the company. He didn't sell any on IPO and actually bought more above $2 - the dude has plenty of skin in game.

DGL has also been buying back some it's shares on issue with the company trading significantly below NTA - something you like to see! BUY

Random Observation

When you read this, make sure you have in the back of your mind that 75% of the world's PLATINUM supply comes from South Africa....What's going on over there is just shocking.

BUY ETPMPT the Physical PLATINUM ETF and AVOID South AFRICAN MINERS....Easy to see why the Chinese have bought most of the world's available PLATINUM as they would be anticipating a future supply crisis. Also worth noting that the PLATINUM  market is already in deficit.

The Day Ahead

  • Our SPI is FLAT
  • Bitcoin up 1.2% to $41,141
  • BHP in US up 0.13%
  • Newmont down 2.8%
  • Block Inc in US up 1.47%

Movements affecting our resource stocks today (USD)

  • Gold FLAT @ $1994
  • Paper Silver FLAT @ $23.05
  • Platinum up 2% to $934
  • Copper up 0.3% to $3.79
  • Brent Crude down 3.5% to $73.35
  • Iron ore up 0.4% to $135.50

Asian Market Update

Japan up 0.16%, Hong Kong up 1.07% and China up 0.4%

After a couple of strong sessions, LITHIUM went limit down again....Wild trading action.

Global Market Update

US Market

DOW up 173 points to 36,577

Investors bought up stocks as inflation data rose in line with economists expectations of 3.1%. The Santa Claus rally in the US has been a strong one thus far despite all the RED FLAGS. 

European Markets

Germans and Brits FLAT, Frenchies down 0.11%

An OIL tanker gets hit and BRENT CRUDE falls 3.5% - you tell me how that works!

Key Market Summary

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