Rudi Filapek-Vandyck

Was it a good reporting season in February? Or was it rather disappointing with Woolworths' profit warning on the final Friday the anti-climax that tells all? With macro influences largely overpowering the micro of profit reports, February proved a rather unusual set of four weeks. It was clear from the onset company reports were second fiddle, or even third, at best. Inspired by central bankers across the globe inserting extra stimulus, investors were prepared to take a glass half-full approach. That didn't stop share prices diving or rallying strongly on the days of releases. The key disappointment is the market's average EPS growth projection has fallen to near zero. And valuations are not exactly cheap. The good news is that underneath the average hides a polarised outlook and certain segments of the market are growing solidly. Apart from Woolies, some new trends and developments revealed themselves. Investors should take note for the months/years ahead. (Hint: I think a new strategy is announcing itself). My in-depth review of an unusual February: (VIEW LINK)



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James Marlay

Very insightful Rudi