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The Good Morning Report – 25th October

Posted on October 25, 2023

The latest market news, commentary and strategy by Adrian Rowney 

5 Things that Grabbed my Attention

1.  GOLD has been making fresh record highs in just about every currency on earth accept USD.

2. Malaysia granted Lynas (LYC) approval to continue processing it's rare earths until March 2026. BUY

3. Mega M&A in the US OIL/GAS sector. Exxon is buying Pioneer for $US60bn and Chevron is looking to hoover up Hess for $US53bn....With increasing red tape, skills shortages and rampant inflation in the sector - it is way cheaper to BUY than BUILD....STO, WDS and BPT are my picks. 

4. Hot on the heels of Invocare (IVC), multiple private equity (PE) firms have approached Propel Funeral Partners (PFP) to take them over....Aging population in Australia plus continued excess deaths and record migration provides some nice tailwinds for this stock. BUY last sale $4.58

5. While I was on holidays, WhiteHaven (WHC) picked up two of BHP's world class MET COAL mines for a song....The best part about the deal is no capital raising - funding to come from debt and existing reserves. With hard coking coal fetching over $US300 a ton, WHC will pay back the debt in no time. BUY

ASX Market Update

ASX 200 up 12 points to 6856

It was a bit of a quiet session on our market accept for Lynas (LYC) shares which popped 12% before going into a trading halt on the snap. I initially thought a takeover bid was behind the sudden surge - kind of dodgy how the stock was trading with most market participants not informed with what was going on...Anyway... LYC announced the Malaysians are going to let them continue operating their rare earths processing plant until the 2nd of March 2026....You beauty!! BUY last sale $6.82...Below is the 1 minute intra chart.

LYC started flying @ 3:30PM while the announcement was made at 4:01PM.

Random Observation

Industry Super has been swanning around for years as they magically outperform everyone else thanks to their unlisted assets that they kept revaluing higher. Well that little party could be coming to a big fat end....Do you even know what your Super is invested in??

 

The Day Ahead

  • Our SPI is up 16 points
  • Bitcoin up 8% to $33,788 (large short covering rally on hopes that an ETF will be approved in US soon)

Movements affecting our resource stocks today (USD)

  • BHP in the US up 2.3%
  • Newmont down 0.25%
  • Gold down 0.23% to $1983
  • Paper Silver down 0.56% to $23.08
  • Platinum down 1.27% to $893
  • Copper up 1.3% to $3.63
  • Brent Crude down 1.9% to $88.10
  • Iron ore up 2.9% to $116.05

Asian Market Update

Japan up 0.2%, China added 0.78% and Hong Kong fell 1%

This is well worth a read....WESTERN investors are clueless with what is going on.

Global Market Update

US Market

DOW up 204 points to 33,141

US stocks rallied on better than expected earnings from Telco giant Verizon and Coke.

European Markets

Germans up 0.54%, Frenchies put on 0.2% and Brits added 0.63%

Gains in Europe were driven by the mining sector - Rio Tinto in London rallied 3.4% and Glencore put on 1.35% as copper futures increased 1.2%....Financials and Autos were weaker.

General Advice Warning
The information provided in this post is general information only. Unless otherwise stated the information is not designed for the purpose of providing personal, financial or investment advice. Any examples are presented for illustration purposes and past performance is not a reliable indicator of future performance. The information provided does not take into account your particular investment objectives, financial situation or investment needs.

Without limiting the generality of the above paragraph no person, persons or organisation should invest monies or take action on the reliance of the material contained in this post, but instead should satisfy themselves independently (whether by expert advice or otherwise) of the appropriateness of any such action. Unless otherwise stated the information presented is not a recommendation to invest in any investments, securities or financial products.

This service, like all other financial services, is subject to market forces and unpredictable events that may adversely affect its future performance. Whilst all care has been taken in compiling information in this post, and is provided in good faith, it is not to be relied upon as a substitute for professional advice. The views expressed are commentary only and the writer accepts no responsibility for the accuracy, completeness or timeliness of the information.

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