Sunset Strip | Aussie market delivered a solid volume positive cup day despite mixed domestic data and global sentiment
Sunset Strip | Aussie market delivered a solid volume positive cup day despite mixed domestic data and global sentiment. ABS restated unemployment rate from 6.1% to 6.2%....we have been expecting since the budget announcements to go past 6.5% before any improvement. RBA left rates unchanged and we do not see them raising it till 2016. We see a very likely scenario where RBA may cut rates in the middle of 2015 to stimulate a stagnant economy. Predicting retail recovery in an environment of falling real wages, rising unemployment and rising cost of living is fraught with danger. RFG has shot up to our target price of $6 after bidding on Gloria Jean chain. NXT continues to recover after the positive market update in July and M&A activity between VOC and AMM. Recent history shows that WOW generally gets hit on result and then recovers due to the scale, quality, market share and yield on offer....we see another buying opportunity. Trading idea of the day: CarSales.com (CRZ). Tuesday's Retail Therapy Pick: Woolworths (WOW). Chart of the day: NextDC (NXT). (VIEW LINK)
Over 25 years’ experience in the finance/tech industry. Mathan has worked extensively in all parts of the finance sector (i.e. County NatWest, Citi, LIM, Southern Cross, Bell Potter, Baillieu Holst and Blue Ocean Equities). Currently Founder and...