The latest market news, commentary and strategy by Adrian Rowney
NO MORNING REPORT TOMORROW - Sorry you will have to go back to FAKE NEWS for the DAY!
5 Things that Grabbed my Attention
1. Downer (DOW) issued yet another profit downgrade sending its shares 20% lower....It can get cheaper - I maintain my AVOID on engineering contractors.
2. There is a big campaign to cancel Blackmores (BKL) after founder Marcus Blackmore said he is voting NO on the VOICE - he is backing the NT Aboriginal Senator, Jacinda Price....I doubt the movement is strong enough to do serious damage to the shares, but our woke government could easily make life difficult for BKL as Marcus' view is at odds Vs their radical ESG agenda...HOLD last sale $78.28
3. YanCoal (YAL) reported a whopping profit of $3.5bn and will pay a final dividend of 70c fully franked....Dividend came in a fair bit lower than I expected, although it is fully franked so grossed up works out as almost $1.00 per share.
4. As a country we are lucky to be self sufficient in FOOD production and a major exporter as there is a growing crisis in many parts of the world.....I think it is important to have exposure to FOOD related stocks in your portfolio - I like - CGC, GNC, A2M, AAC, IPL, NUF, BGA, ING & FOOD (ETF).
5. The world's biggest PLATINUM miner, AMPLATS is being forced to cut production again due to the energy crisis in South Africa. The CEO is also resigning and plans on moving to NEWMONT - smart move; running any mining operation in SA is going to become a nightmare.....How PLATINUM prices fell 4% after this news was released last Friday is beyond a joke....BUY ETPMPT - PHYSICAL PLATINUM ETF.
ASX Market Update
ASX 200 down 82 points to 7224
Funeral parlor operator, Invocare (IVC) fell 10.8% after reporting a $1.8 mil loss.....how is that possible you may ask, considering the death rate has been significantly higher than the long term average, so business should be booming...
Well - underlying earnings did hit a record high of 35c per share but management were punting on stocks and bonds with the half billion or so of prepaid funeral money - and they made a $55 million loss on that....Anyway, I am hoping they have learned some valuable lessons, so will be maintaining my BUY recommendation: last sale $9.86
In a FOOD crisis it makes common sense to own FOOD related stocks: I like GNC, CGC ,AAC, BGA, ING, IPL, NUF and FOOD ETF
The Day Ahead
- Our SPI is up 39 points
- Bitcoin down 1.1% to $23,429
Movements affecting our resource stocks today (USD)
- BHP in the US was up 0.3%
- Gold up 0.5% to $1826
- Paper Silver down 0.75% to $20.78
- Copper up 1.6% to $4.01
- Brent Crude down 1.5% to $81.91
- Iron ore down 3% to $122.15
Asian Market Update
Hong Kong down 0.33%, China off 0.28% and Japan dipped 0.11%
Two questions I have:
1. Where are all the commodities going to come from for these EVs? (Nissan had want to get it's arse into gear)
2. Are enough people going to be able to afford them if commodities prices surge and stay high?
Truly staggering amount of commodities the world needs for this transition....trashing the environment to 'save' the environment makes ZERO sense....GREEN = SCAM
Global Market Update
DOW up 72 points to 32,889
US stocks staged a bit of a relief rally after last week's sell off....TESLA was one of the stronger performers putting on 5.8% to $208.
Germans up 1.1%, Brits added 0.72%, Frenchies put on 1.51%
When yields rise it means the actual BOND is falling in price....
OUCH! German 10y yields hit highest level since 2011, BBG reports. pic.twitter.com/P9p3lcuD8w
— Holger Zschaepitz (@Schuldensuehner) February 27, 2023
Remember how crazy the BOND market bubble got when yields went negative for those few years? Pure insanity that investors were paying for the privilege of lending the German government money! Historically STUPID....The yield is now 2.56% but with inflation running at 8.6% these BONDS are still a big FAT AVOID.
Key Market Summary