AGM woes point to lethargic economy

Wilson Asset Management

Wilson Asset Management

AGM woes point to lethargic economy. This week and last week sees the peak in AGM season. As we have been telegraphing in recent months, the domestic economy remains lethargic at best. We saw evidence of this with a significant number of companies announcing earnings downgrades, including Ainsworth Game Technology (ASX: AGI), Seven Group Holdings (ASX: SVW), Sonic Healthcare (ASX: SHL), Monadelphous Group (ASX: MND), Rubik Financial (ASX: RFL) and Cardno (ASX: CDD). Last week alone saw the largest number of profit downgrades in such a short space of time for a number of years from a wide range of sectors such as gaming, financials and mining. In addition, we also note a significant derating of some small resources companies in the last three months, especially iron ore companies. For example, BC Iron (ASX: BCI) and Atlas Iron (ASX: AGO) shares are down 85.3% and 78.5%, respectively in the space of only three months. We don't own any of the above-mentioned companies in the investment portfolio.

Wilson Asset Management
Wilson Asset Management

Wilson Asset Management has a track record of making a difference for shareholders and the community for more than 20 years. As the investment manager for eight leading LICs – WAM Capital (ASX: WAM), WAM Leaders (ASX: WLE), WAM Global (ASX: WGB),...

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.


Please sign in to comment on this wire.

trending on livewire
Get the best of Livewire by signing up to our popular daily newsletter