The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. USD hit a fresh record low Vs GOLD overnight…Giddy Up!!!
2. Dexus (DXS) wrote down the value of it’s office portfolio by 15.6% or $1.8bn….The new NTA is now $8.97 so there is some definite value in the stock with it trading @ $6.83 but I’m not rushing in just yet.
3. Ampol (ALD) has had to delay the instillation of EV charging bays as our grid is not up to the task….The whole idea of EVs being able to function properly in Australia is a joke.
4. Nufarm (NUF) director John Gillman just picked up close to $300K worth of stock. I think Johnny boy is frothing over it’s OMEGA-3 business unit which they say will double its revenues to $100 mil next year….Anyway – follow the money: BUY last sale $3.95
5. After the 40% sell off in Paladin (PDN) I’m now adding it to my little black book of BUYs. This miner has got some absolute banging leverage to a URANIUM price that is set for another big run…..World class URANIUM miners are as rare as hens teeth. BUY last sale $10.24
ASX Market Update
ASX up 17 points to 7997
YanCoal (YAL) shares fell 14.5% to $5.95 after deciding not to pay a dividend in order to keep money for a new acquisition. I’d say they are bidding on some of Anglo American’s world class MET COAL mines that are up for sale (which will be sensational for shareholders if successful)…..As YAL suspended it’s dividend, income funds would have been forced to liquidate the stock as it no longer fits their mandate. Also some retirees probably had a sook and sold. Intraday the stock plunged down to $5.35!
YAL is a very profitable company with $1.55bn in cash on the balance sheet and they just bagged a $420 mil profit over the past 6 months. BUY
This is probably one of the most pristine balance sheets on the ASX – absolutely swimming in cash!
Random Observation
Every investor should watch this (especially golfers)….
The Day Ahead
- ASX futures down 33 points
- Bitcoin up 1.2% to $59,665
- BHP in US down 0.6%
- Newmont in US up 0.5%
- URNM in US up 1.33% (is that all!???)
Movements affecting our resource stocks today (USD)
- Gold up 0.53% to $2554
- Paper Silver up 0.62% to $29.48
- Platinum down 0.59% to $957
- Copper down 0.65% to $4.15
- Brent Crude off 0.48% to $77.29
- Iron ore up 1% to $95.50
Asian Market Update
Japan up 1.8%, Hong Kong off 0.33%, China added 0.93%
It’s going to be a pretty juicy URANIUM boom….BUY PDN and URNM
Global Market Update
US Market
DOW down 61 points to 40,834
US stocks closed slightly in the red thus breaking an 8 day win streak….Fed Reserve Chairman Jerome Powell is set to give a speech this Friday which traders are eagerly awaiting; kind of absurd how one dude has so much power over the global market.
European Markets
Germans down 0.35%, Brits off 1% and Frenchies dipped 0.22%
Sweden’s central bank called Riskbank, cut interest rates overnight by 0.25% to 3.5% and indicated a further 2 to 3 cuts are coming….They are pumping the tyres.
Key Market Summary
