The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. RBA kept interest rates on HOLD @ 4.35% but left the door open for more RATE HIKES.
2. FORD reported record high sales of HYBRIDS in January while EVs declined 11%….This is BULLISH for PLATINUM which is needed to make catalytic converters for HYBRIDS….BUY ETPMPT last sale $129
3. BEEF prices in the US have hit a record high as the cattle herd hit a 73 year low….While Australia Agriculture (AAC) doesn’t operate or sell to America, overall lower supply should be favourable for the stock. BUY last sale $1.44
4. China’s sovereign wealth fund is buying stock ETFs to support the market….Nothing wrong with following them in. BUY IZZ.
5. Generally speaking – we are seeing full blown capitulation in the junior mining sector as management teams are just having bonfires with shareholder’s cash. Do they have no shame living like rockstars as they bleed companies dry? The recent set of quarterly cash flow (outflow) reports are a disgrace.
ASX Market Update
ASX 200 down 44 points to 7581
One of the top performers was Nick Scali (NCK) which rallied 16% despite posting a 29% fall in net profit to $42 million for the past 6 months on the back of sales of $226 million which was down 20%….So how does that work – the stock took off while sales plunged? Well….it’s all about market expectations and if the numbers come in better than analyst consensus then the stock will go up.
I placed an AVOID on NCK when CEO Anthony Scali SOLD about $50 mil worth or 40% of his holding @ $11, so have missed the run….Can’t win them all.
Random Observation
This is beyond crazy…
The Day Ahead
- SPI is up 45 points
- Bitcoin up 1.2% to $43,207
- BHP in US up 1.1%
- Newmont up 0.87%
- Rio in London up 1.06%
Movements affecting our resource stocks today (USD)
- Gold up 0.47% to $2052
- Paper Silver up 0.37% to $22.51
- Platinum up 0.8% to $911
- Copper up 0.38% to $3.78
- Brent Crude up 1% to $78.77
- Iron ore down 0.9% to $125
Asian Market Update
Japan down 0.53%, China up 3.23% and Hong Kong rallied 4.04%
Xi Man ordered a stock market rally for lunch….
Cheers Xi Man – certainly appreciate the push higher in IZZ…Next time we catch up, it’s my shout!
Global Market Update
US Market
DOW up 61 points to 38,440 (half hour to go)
Peter Thiel’s Palantir Technologies surged 19% after BEATING revenue expectations in the fourth quarter….Peter wants to live until he is 120 and is involved in all sorts of crazy anti-aging research.
European Markets
Germans up 0.76%, Brits added 0.9% and Frenchies put on 0.65%
BP shares rallied 5.7% after reporting a higher than expected quarterly profit. Investors were also happy that the OIL giant is ramping up it’s share buyback…..Profit for the full year plunged around 50% due to lower OIL prices.
Key Market Summary
