The latest market news, commentary and strategy by Adrian Rowney
No morning report for the next few weeks. I will be back writing it on the 24th of September.
5 Things that Grabbed my Attention
1. Historically September is the worst performing month of the year, so best to have very low expectations.
2. VW is considering on shutting down some plants in Germany and sacking a stack of workers – something they have never done in it’s 87 year history when it was originally created under Hitler….VW is struggling to compete against the Chinese made cars.
3. Star (SGR) shares have been suspended from trade due to quite a few headaches – they haven’t lodged their annual earnings report, lenders are getting nervous and the government could strip it’s gaming license….Happy to not have any exposure.
4. CoreLogic said that Adelaide and Perth property prices are now more expensive than Melbourne for the first time ever….I’m not surprised.
5. Woolies (WOW) sold the last of it’s remaining shareholding in Endeavor (EDV) for $5.23
ASX Market Update
ASX 200 up 18 points to 8109
Realestate.com (REA) said it was considering making a cash and share takeover bid for Rightmove Plc which is the UK’s largest online property group. It makes so much sense as REA trades on a high PE multiple of 64 times while Rightmove is around 22 – which means REA can use it’s expensive stock to buy a company with a much cheaper valuation.
There is also only so much growth REA can get out of the Aussie market, so they need to go overseas for expansion…. Market wasn’t overly thrilled with the idea and sent the stock down 5.28%.
Random Observation
URANIUM is an absolutely amazing energy source…
The Day Ahead
- ASX futures up 6 points
- Bitcoin down 0.1% to $58,551
- BHP in US was SHUT
- Newmont in US was SHUT
- URNM in US was SHUT
Movements affecting our resource stocks today (USD)
- Gold up 0.16% to $2531
- Paper Silver down 1.3% to $28.51
- Platinum FLAT @ $931
- Palladium up 1.2% to $974
- Copper down 0.38% to $4.19
- Brent Crude FLAT @ $79.21
- Iron ore up 1.3% to $134
Asian Market Update
Japan up 0.14%, Hong Kong fell 1.65% and China down 1.1%
BYD Plug in Hybrids (PHEV) are showing massive growth Vs Battery Electric Vehicles (BEV)….That is great news for PLATINUM/PALLADIUM which is needed to make the catalytic converters in PHEVs.…BUY ETPMPD AND ETPMPT
Global Market Update
US Market
DOW SHUT for Labor Day
European Markets
Germans up 0.13%, Brits off 0.15% and Frenchies added 0.2%
Rightmove shares surged 27% in London on news that REA could potentially make a full takeover bid.
Key Market Summary
