CommSec's Tom Piotrowski speaks with BKI Investment Company (BKI) Portfolio Manager, Tom Millner about the company’s first half results, its low fee structure and investment opportunities in the infrastructure, financial & healthcare sectors. Show More
Strategists are constantly searching for high correlation relationships to guide investment decisions but the accompanying chart showing a zero correlation should guide the portfolio construction decisions of all resource sector investors. It shows the correlation in return rankings across all ASX-listed resources stocks in successive years. Cross-year correlations are typically... Show More
The largest gains in resource sector equity prices are currently from stocks classified as Phase I within the PortfolioDirect framework. Segmented model results are shown in the chart below. Show More
So you’re thinking of starting a portfolio, evaluating how your holdings have performed, or considering some portfolio spring cleaning? Show More
The PortfolioDirect resources equity model finished January ahead of the ASX 200 Resources benchmark for the ninth consecutive month and for all but three months out of the past 24.The benchmark did run slightly ahead of the PortfolioDirect macro model in the past week. Phase II companies lost ground against... Show More
We enter 2016 with a continued neutral stance with regard to growth versus defensive assets overall. With the global equity bull market maturing and entering its 8th year, risks appear evenly balanced. On the one hand, the rally remains underwritten by central bank support if need be, due to low... Show More
Rising copper metal inventories over the next several years, contrary to most recent expectations, would mean persistent downward pressure on prices. This is a realistic scenario against the backdrop of downgraded global growth forecasts . The PortfolioDirect investment report this week discusses the sensitivity of copper demand to changes in... Show More
A PortfolioDirect rating update for Excelsior Gold (EXG:AU) was completed recently. There was a time when the quality of a mining project was judged by how much capital its development required. Not now. Excelsior Gold has escaped the capital market burden confronting many other gold producers by striking a deal... Show More
Rating reviews for Blackham Resources (BLK:AU), Red 5 (RED:AU) and 88 Energy (88E:AU) have been completed recently. Coincidentally, all three are clawing their way back from investment histories which have required them to rehabilitate their investment presence. All have some way to go but have grounds for optimism about their... Show More
Kidman Resources (KDR:AU) and Sumatra Copper and Gold (SUM:AU) have both produced their first gold recently. They now both run modest sized operations reflecting pressures on the industry to start small and grow from internally generated cash. Both show evidence of being able to expand their resource base to add... Show More
Large commodity price rises last week recovered only a tiny proportion of lost ground leaving the overall cyclical position little changed. A further global growth downgrade from the IMF left the sector at risk of having to reduce its estimates of raw material demand. The open question after the week’s... Show More
Mincor Resources (MCR:AU) is putting in place a growth platform for the future it may not survive long enough to enjoy. Mincor is a Phase IV company with a declining output profile as its resources are exhausted facing the prospect of costs remaining above its selling price. The PortfolioDirect definition... Show More
The commentary in the PortfolioDirect weekly investment report continues to highlight the deteriorating cyclical position confronting the resources sector as prospects of a global growth acceleration appear to diminish. The forecast duration of the current cycle has been revised to take account of the less supportive macro landscape. Impact Minerals... Show More
A weakening macro landscape points to a lengthier cyclical adjustment for raw material markets than previously anticipated before prices stabilise and begin to improve. The latest PortfolioDirect investment report http://www.portfoliodirect.com.au/WeeklyReports/24-310815/cover.html outlines a changed view of the resource sector cyclical positioning. Until mid 2014, the process of adjustment had been broadly... Show More
The gap measuring the difference between historical and actual metal prices at the same point in the cycle was as wide as ever at the end of May. Falling sector volatility has helped stabilise headline index values. Within the sector, there is mounting evidence of individual stocks trading toward the... Show More
The commentary this week is about sources of slowing global growth and the likelihood of a more prolonged cyclical adjustment. This was not by design but just the bias in the data flow. Scarcer sources of momentum improvement are showing up in weakening metal usage statistics. Strong price gains among... Show More
This week’s PortfolioDirect investment report highlights once again how resource sector equity prices remain confined to a cyclical trough with very few examples of companies being able to display enough strength to establish sustainably higher price platforms. Meanwhile, the flow of economic indicators is pointing to more downward pressure on... Show More
This week’s PortfolioDirect investment report highlights the first sign in many months of an improved cyclical position for the resources sector although the gap between current positioning and earlier cycles shown in our model of cycle timing remains wide and a drag on sentiment. Some respite from a rising US... Show More
This week’s PortfolioDirect investment report highlights the strong share price leverage near the bottom of a commodity price cycle. The bottom of the cycle is usually also characterised by many anticipated cyclical recoveries for the one that eventually occurs. One of the dilemmas posed for investors by these conditions is... Show More
The big disruptive names – Facebook, Google , Apple – have been gyrating in recent days as Wall Street tries to work out whether they will disappoint in the current earnings season, with Facebook starting the ball rolling for the majors on Thursday (Australian time) followed by Google, Amazon and... Show More