Sunset Strip | Aussie market started positive with US lead and then dived down as sentiment changed with falling Iron Ore and US plans for Iraq. We continue to be negative in the short term as the markets had run ahead of valuation, rising geopolitical risks, China tightening, stocks going ex div, escrow shares taking marginal buying and ECB delivering nothing new for now. BHP/RIO are now buy ideas when you look at the supply/demand and volume/margin dynamics. Myer reported another Bernie result...more recovery stories than in Marvel Comics...management blamed everyone including god...few people wondering why there was no profit warning. Myer needs M&A or dramatic change in the service model without cost blowout...brokers will get fancy to get a buy call on this one. Trading idea of the day: Breville (BRG). Thursday's Thematic Pick: Telstra (TLS). (VIEW LINK)
Breville will recover with new management announcement while Myer needs serious work. Myer is struggling to work out who is their customer base and what they can offer that is unique....till then there is no need to be there.
I missed the Sunset Strip - great to have you back Mathan. Both Breville and Myer seem to be contentious at the moment...