Every results season, for the whole month of February and again in August, it is the job of broker analysts to analyse the stocks that announce results, and it is purgatory. Poor brokers. Here’s why.
We are into the results season and these days, thanks to the herd that now thunders around the market in the short term, and the computers that react to a whiff, rather than a sniff, or even a taste, the results season has become a dangerous time. The results month is like being on a battlefield during an artillery barrage wearing fluoro orange. You never quite know when you’re going to get blown up.
It’s what people don’t know that makes you money in the stock market, not what everybody already knows. What everybody knows is in the price. On that basis, it is wasted time poring over history, the known and the numbers. Your best research is going to require a pint of lager, a pair of speedos, a sun bed, a pool, a sunny day and an imagination. Shut your eyes and imagine waking up in twenty years time. What’s different? And how does that affect stock prices?
The finance industry is a Matrix, and like the Matrix, everyone who enters the Matrix is brainwashed with a lie, lies, lies that preserve the existence of the Matrix. The main lie is that you will improve your standard of living by investing in a diversified portfolio of asset classes over the long term by doing nothing. That lie includes selling stock market mantras like these:
After looking into Boss Energy (BOE) on Wednesday we are seeing what NexGen Energy (NXG) has to offer. NXG is a Canadian company listed on the Toronto Stock Exchange (TSE), NYSE and a depository receipt in Australia (1:1 ratio). It is the smallest of the three major uranium stocks on the ASX with a market…
We are looking at increasing our uranium exposure today after having such success in PDN. The bullish market showing no signs of slowing as spot prices return to $90. Boss Energy (BOE) and NexGen Energy (NXG) are two we will look to add in the Growth Portfolio with a 2.5% weighting each. NXG has results…
Resmed (RMD) results – Is trading up 11% afterhours in the US and up 6.7% on the ASX as results beat consensus expectations by 9%. Brokers said at the start of the week that focus for the results will be on sales growth, margins and commentary on the impact weight loss drugs have been having…
Spark New Zealand (SPK) – We are taking a look at the telco SPK today, a NZ version of TPG or Telstra. We hold it in the Income Portfolio and it has had a torrid year, down 13% since early February. That's a significant drop for a defensive income stock yielding 6%. Most of the…
Whitehaven Coal (WHC) – has been in the news recently after completing the acquisition of two major BHP coal mines in QLD and jumping 24% in less than a month. The share price saw a 30% fall from late 2022 to mid 2023 after the post covid spike in coal prices normalised and since bottoming has…
