The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. With crypto exchanges going pear shaped, Wall Street is racing to take over the market by setting up ETFs. Bitcoin rallied 7%.
2. Downgrade cycle continues....This time its Regional Express (REX) which said it is no longer going to make a profit in FY23 and is forecasting a loss of $35 million. It is blaming supply chain shocks and a shortage of pilots and engineers. REX fell 12%....AVOID
3. Dexus (DXS) decreased the value of its commercial property portfolio by 6%....I expect more valuation cuts from them in the future. AVOID.
4. Sales at Best and Less (BST) over the past 5 weeks plunged 13.2% Vs previous corresponding period...The stock would have been absolutely decimated if it wasn't for Brett Blundy's takeover bid.....AVOID RETAIL
5. BHP released its 'Operational Decarbonisation' plan....They know it is all complete and utter nonsense, but are playing the game because CLIMATE CHANGE = A BIG FAT MINING BOOM!....see Random Observation.
ASX Market Update
ASX 200 down 42 points to 7314
Flight Center (FLT) was the worst performer in the top 200 falling 6.8%. FLT posted a pretty solid update but mentioned trading conditions are 'gradually starting to normalize' - in other words the frenzy after the lockdowns is likely over.
I thought the below was a very interesting slide. I see FLT's customer base as the ones generally sitting pretty financially, so should weather the coming economic storm...but.. I am a bit cautious at the moment - the stock could get cheaper on a market shakeout.
I checked out Scotty Dunn's website....Jeez...starting @ A$33K per person for South Oz, old mate Scotty runs quite the racket. A couple of his tour groups should get together and buy the whole bloody state at those rates!!
OPERATION DECARB aka OPERATION GREEN SCAM
I ran through BHP's latest plan to keep the weather nice and cool for us...What a joke;
It looks like they are going to need a lot more trucks to move the ore - fortunately I am hearing that battery powered trucks are now made from green pixie dust, so they count!
Loved this one...Mines running off 100% renewables - Lol....The author of this slide needs to lay off the mushrooms - those blue meanies have taken him off to another dimension!!
I've saved the best slide for last - BHP doesn't plan on implementing their $4bn Decarb Scam until the tech matures....In other words - they know it is all BS, but are just making the woke institutions feel all warm and fuzzy about owning the stock.
The Day Ahead
- Our SPI is down 6 points
- Bitcoin up 7% to $30,072
Movements affecting our resource stocks today (USD)
- BHP in the US down 0.7%
- Newmont down 1.2%
- Gold down 0.22% to $1943
- Paper Silver down 2.28% to $22.70 (China lovin' cheap SILVER for the Solar Boom!)
- Platinum down 2.2% to $946
- Copper up 0.54% to $3.90
- Brent Crude up 1.5% to $77.06
- Iron ore down 1.8% to $110.95
Asian Market Update
China down 1.3%, Hong Kong off 2% and Japan up 0.56%
Just phenomenal infrastructure the Xi Man has built to move this many people around the country.
Tourist trips expect to hit 100 million during this year's #DragonBoatFestival holiday, breaking through the figure of the same period in 2019, the CCTV reported on Wednesday. https://t.co/KwfPGsv6vi https://t.co/JEhW1Xkx9m
— China Daily (@ChinaDaily) June 21, 2023
Global Market Update
DOW down 102 points to 33,951
The NASDAQ fell 1.2% as it appeared the hot money flowed out of TECH stocks and into BITCOIN which surged 7%.....Tesla shares fell 5.46%.
Brits down 0.13%, Germans off 0.555, Frenchies fell 0.46%
UK inflation rate came in at 8.7% vs 8.4% expected. There is growing talk that the Bank of England could hike rates by 0.5% to 5% when they meet tomorrow....STAGFLATION has become an ugly reality for the Brits.
To really stick the boot in a video has emerged of the politicians/bureaucrats who enforced COVID lockdowns/experimental vaccines partying while they forced the commoners into isolation; these scumbags knew COVID was a SCAM from the START - it was just a bad flu doing the rounds; impossible to say otherwise as the stats show a 99.8% survival rate.
The greatest CON job in human history of full display....Hope some of you are waking up to it.
Video emerges of Tory staff partying during Covid https://t.co/nyWtddUp0p
— BBC News (UK) (@BBCNews) June 18, 2023
Key Market Summary