The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. The bid on the table for Newcrest shareholders is 0.380 Newmont shares for each share held - works out at around $27.50......No way Josè!
2. Newcrest (NCM) has 30 years worth of GOLD in the ground at current production levels - the max the other majors have is 15 years worth; NCM is in a league of its own!
3. Going to be interesting to see if Barrick come in with a higher offer for NCM.....Whatever deal comes - I hope shareholders demand that it can't be in the form of CASH (meaning we get shares in the acquirer) and the listing HAS to remain on the ASX.
4. OpenPay (OPY) is the first major casualty of the BUY NOW PAY LATER ASX listed stocks as it just went bust....I maintain my AVOID on the sector.
5. The now bankrupt FTX is demanding politicians pay back by the end of the month, the $93 million that Sam Bankrupt Fried gave them....HAHAHAHA - imagine where that money ended up!
ASX Market Update
ASX down 19 points to 7539
Talk of the town was obviously Newcrest and the takeover bid from Newmont....Market is thinking the BID has no hope as NCM shares closed well below the theoretical takeover price of around $27.50.....NCM finished 9.2% higher to $24.53 BUY
Sorry Megs, tell ya boss we want somethin' more substantial!
BUY URNM - GLOBAL URANIUM ETF
Small nuclear reactors are incredibly safe.— Brian Gitt (@BrianGitt) February 5, 2023
US navy track record operating small reactors on submarines:
5,700 years of reactor operation
134 million miles traveled around the world
0 reactor accidents
0 release of radioactivity
The Day Ahead
- Our SPI is down 3 points
- Bitcoin up 0.6% to $23,004
Movements affecting our resource stocks today (USD)
- BHP in the US down 1.5%
- Gold up 0.27% to $1881
- Paper Silver down 0.5% to $22.29
- Copper down down 0.47% to $4.03
- Brent Crude up 1.74% to $81.43
- Iron ore down 1.5% to $123.05
Asian Market Update
China down 0.76%, Hong Kong down 2%, Japan up 0.67%
Nice little side hustle for the Indians!...Stupidity of the WEST on full display.
India is playing an increasingly important role in global oil markets, buying more and more cheap Russian oil and refining it into fuel for Europe and the UShttps://t.co/Lf8f8Vc6hj
— Bloomberg (@business) February 5, 2023
Global Market Update
DOW down 34 points to 33,891
We saw a bit of profit taking come into the TECH sector which saw the NASDAQ fall around 1%....APPLE dipped 1.79%, Alphabet off by 1.66% and Microsoft closed 0.67% lower.
Brits down 0.82%, Germans off 0.84%, Frenchies fell 1.34%
After raising rates by 0.5% last week it looks like the ECB will put through another 0.5% hike at their next meeting on March the 16th....Those loaded with variable debt will start feeling the squeeze.
Key Market Summary