The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. Ramsay (RHC) is on the move. BUY, BUY, BUY last sale $52.07....Don't over think it - KKR (private equity monster) thought they could make money buying the whole kit and caboodle for $88!
2. APRA is now warning about rising bad debts at our second tier lenders....There is no need to be invested in the sector and if you have your money in an unlisted mortgage fund then you just ain't thinkin' straight!....Also - don't have any deposits with small lenders, if you do - get it out NOW.. not tomorrow... not next week...but NOW....Comprende?
3. A bit of director buying at Regis Resources (RRL) - a welcome sign. BUY last sale $1.61
4. Seven Group (SVW) sold 11.1 million shares or 1% of its stake in Boral (BLD) @ $4.90 - they still own 71.6% stake....SVW said they sold to 'capture the market valuation' - in other words the stock is fully priced @ $4.90.
5. Snowy 2.0 project costs have doubled in the past 6 months to a whopping $12bn - bit of nasty inflation right there.....What a joke of a project - not only is it shockingly BAD for the environment, economically it doesn't stack up. CLOWN WORLD
ASX Market Update
ASX 200 up 95 points to 7305
Our market had a strong session after a lower than expected inflation reading came through (ABS must strip out everything that I spend money on!).... Industrials fared the best after Brambles (BXB) posted a strong result and forecasted growth of between 9-12% for FY24. BXB closed 7% higher.
On the negative, Chalice (CHN) tanked 25% after releasing the scoping study for its giant nickel/palladium/platinum/copper project in WA. Investors were shocked that they were using metal prices in their study which were significantly higher than current market rates....Just shows how ridiculously mispriced metals are when one of the world's best ever discoveries isn't that economical with current pricing that is set by PAPER FUTURES trading on the fraudulent LME and COMEX....CHN's project is an absolute banger - so I am a sure the mining heavyweights such as BHP, RIO and Glencore are having a closer look. SPEC BUY last sale $3.77
Random Observation
Let's go SILVER, let's GO!!!
Commodity price changes over the last year…
— Charlie Bilello (@charliebilello) August 28, 2023
Sugar: +34%
Silver: +29%
Gold: +11%
US CPI: +3.2%
Copper: +2%
Gasoline: -1%
Soybeans: -5%
WTI Crude: -14%
Brent Crude: -15%
Aluminum: -15%
Heating Oil: -17%
Wheat: -23%
Cotton: -26%
Corn: -27%
Zinc: -34%
Coffee: -36%
Nat Gas: -71%
The Day Ahead
Reports: HVN, IGO,SFR,AMA,CMW
- Our SPI is down 13 points
- Bitcoin down 2.8% to $27,201
Movements affecting our resource stocks today (USD)
- BHP in the US up 0.71%
- Newmont up 0.43%
- Gold up 0.34% to $1971
- Paper Silver down 0.47% to $25.01
- Platinum down 0.15% to $984
- Copper down 0.38% to $3.78
- Brent Crude up 0.46% to $85.88
- Iron ore up 2% to $114.45
Asian Market Update
Japan up 0.33%, China and Hong Kong FLAT
Moshi Moshi infration....
BREAKING: Retail gasoline prices in Japan just hit a (nominal) record high of ¥185.6 per litre, surpassing the peak set in mid-2008.
The Japanese government is set to extend gasoline price subsidies expiring in September to, at least, the end of 2023, and perhaps longer | #OOTT pic.twitter.com/6i9VYUrtsW
— Javier Blas (@JavierBlas) August 30, 2023
Global Market Update
US Market
DOW up 37 points to 34,890
American Airlines flight attendants have given their union approval to go on strike if the company doesn't meet their demands. The market shrugged off the news with the stock closing down just 0.5%.......Inflation is going nowhere - higher wages will lead to higher ticket prices.
European Markets
Germans down 0.24%, Brits up 0.12%, Frenchies down 0.12%
My long held investment philosophy has always been very simple: GREEN = SCAM = AVOID.....WOKE investors are getting some serious KARMA for bankrolling companies that have been willfully trashing the environment/wildlife. Orsted shares have now tanked around 70% since 2021.
