Tom McKay

Asian investors are aggressively short mining services. Charlie Aitken from Bell Potter has returned from a three day Asian roadshow where he met with a number of funds and family offices (managing more than a trillion in assets). He says the investors were universally bearish to outright aggressively short on the mining services industry. Aitken says it's hard to argue with their view considering what is happening in the sector. I suspect the shorting is going to get indiscriminate and target any mining services stock left standing. The stocks Asian investors discussed most from the short side were Monadelphous (MND) followed by Bradken (BKN). Outside of mining services there was a lot of interest in the listed property developers, with Lend Lease (LLC) a name that came up in almost every conversation. Woolworths was discussed as a relative value way of playing consumer spending rising in Australia.


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