Investment Ideas From the Edge of the Bell Curve
Critical minerals explorer and meteoric riser WA1 Resources [ASX:WA1] has gone to fund managers for $50 million in order to expand its drilling at its West Arunta Project.
The institutional placement was priced at $17 per share, which is just below a 10% discount on the five-day volume weighted average price.
The West Arunta Project is home to the Luni deposit of niobium, a highly specialised precursor that is used in high-tech sectors for alloying.
It has been classed as a critical mineral due to its use in many high-tech applications, such as specialised magnets, which are found in wind turbines and EVs.
The Reserve Bank left rates on hold today in a move widely expected by the market.
Rates are on hold at 5.5% since their raise to their point in May 2023.
Here is what the bank said today:
‘Restrictive monetary policy has significantly reduced consumer price inflation, with the Committee expecting headline inflation to return to within the 1 to 3 percent target range in the second half of this year. The decline in inflation reflects receding domestic pricing pressures, as well as lower inflation for goods and services imported into New Zealand.’
‘Labour market pressures have eased, reflecting cautious hiring decisions by firms and an increased supply of labour.’
Incitec Pivot [ASX:IPL] has ceased negotiations with Indonesia’s PT Pupuk Kalimantan Timur in the ongoing discussions to sell its fertiliser business.
Incitec Pivot chief executive Mauro Neves said the decision was based on careful consideration of value for shareholders, saying:
‘We have determined we are unlikely to achieve this outcome with PKT in an acceptable timeframe and as a result we made the decision to cease negotiations with them.’
The company had been eager to begin a $900 million stock buyback program in the near term.
While in the longer term, the company said it would continue to manage its explosives and fertiliser businesses separately, and said that IPL remains ‘in a strong position for the agricultural season ahead.’
Tesla [NASDAQ:TSLA] shares closed higher for their 10th consecutive session, with the stock gaining over 40% too close at a 9-month high.
It’s rare to see a consecutive run of that many days on a stock, especially one that had just seen four months sliding down nearly 50%.
It seems the old adage that stocks go up the stairs and down on the elevator is reversed for Tesla.
This could be thanks to the retail investors that double as a fanbase for Elon Musk and his products.
The company emerged from a tough first half of the year after a series of cost-cutting initiatives to maintain margins that had been squeezed due to competition with the major Chinese automakers.
For investors considering hopping on for a ride here, it could be worth considering the age of Tesla’s models versus its rivals and the fact that shipments are still falling.
But it wouldn’t be the first time Mr Musk has surprised his critics and turned a challenge into a success.
Good morning. Charlie here,
ASX Futures are trading down this morning, trading 58 points lower, pointing to a morning slide for the ASX.
On Wall St, the major US benchmarks had a mixed session, the Nasdaq and S&P 500 inched to their fifth record consecutive close.
It seemed that mega tech was once again holding up the market as Telsa gained +3.7% and Nvidia +2.4%.
With an equal-weighted S&P 500, we can see the wider market is underperforming the major benchmark as staples, industrials, and resources all see pullbacks.
The other major factor pushing US stocks higher was Fed Chair J Powell’s latest speech to the Senate Banking Committee. Mr Powell gave some clearer signals than usual for these kinds of affairs.
Here are the two sections of his speech that pushed traders to increase their bets for an interest rate pivot in September.
“We had quite a lot of good inflation data in the last seven months of last year, then we had a bump in inflation in the first quarter, and now we’ve had one good and one very good inflation reading. We need more good data so that we can be confident that what we’re seeing is really that inflation is going back down toward 2%.”
The quoted part of Mr Powell’s speech was a warning about the dangers of cutting too late, which traders took as a sign of earlier cuts; with him saying:
“Elevated inflation is not the only risk we face…The latest data show that labour market conditions have now cooled considerably from where they were two years ago – and I wouldn’t have said that until the last couple of readings,” he later added.
Meanwhile, closer to home, we have the Reserve Bank of New Zealand’s next interest rate decision at noon today. It’s widely expected that it will be another rate hold for the central bank, and there will be no forecast update, so it will be a rather quiet affair on the markets.
Name | Value | % Chg | |
---|---|---|---|
Major Indices | |||
S&P 500 | 5,576 | +0.07% | |
Dow Jones | 39,291 | -0.13% | |
NASDAQ Comp | 18,429 | +0.14% | |
Russell 2000 | 2,029 | -0.45% | |
Country Indices | |||
UK | 8,139 | -1.28% | |
Germany | 18,236 | -0.66% | |
Japan | 41,580 | +1.96% | |
Hong Kong | 17,523 | Flat | |
Euro | 4,903 | -1.33% |
Name | Value | % Chg | |
---|---|---|---|
Commodities (USD) | |||
Gold | 2,365.27 | +0.15% | |
Silver | 30.82 | -0.14% | |
Iron Ore | 108.70 | -0.04% | |
Copper | 4.5859 | -0.70% | |
WTI Oil | 81.567 | -0.93% | |
Currency | |||
![]() | AUD/USD | 67.43¢ | +0.06% |
Cryptocurrency | |||
![]() | Bitcoin (USD) | 57,927 | +2.14% |
Ethereum (USD) | 3,059 | +1.18% |
2:31 pm — July 10, 2024
1:01 pm — July 10, 2024
11:44 am — July 10, 2024
10:25 am — July 10, 2024
9:56 am — July 10, 2024
Investment ideas from the edge of the bell curve.
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