Based on the latest ASIC data released on August 9, the most shorted stocks on the ASX were:
China’s People’s Bank has cut interest rates to 2.75%, the first interest rate cut since January.
Analyst estimates predicted the bank to leave the rate unchanged.
The cut comes after official statistics showed worse than expected consumer and factory activity.
Retail sales rose 2.7% year-on-year while industrial production rose 3.8%.
Yet analysts forecast the former to rise 5% and the latter to rise 4.6%.
The central bank surprised everyone by cutting key interest rates by 10 basis points, but with demand so weak it's unlikely to have much impact. Data Friday showed new credit weakened sharply, despite banks being flush with cash. pic.twitter.com/B6OWPqtZtY
— Richard Frost (@frostyhk) August 15, 2022
The S&P/ASX All Technology Index has gained over 25% since hitting a 52-week low in mid-June.
While the index is rallying in recent weeks, it is still down 25% over the past 12 months.
The All Tech Index was launched in February 2020 to provide access to Australia’s leading and emerging tech stocks across a range of sectors.
Some of the top stocks in the index by market cap at the June 2022 rebalance were Block (ASX:SQ2), Computershare (ASX:CPU), REA Group (ASX:REA), Wisetech Global (ASX:WTC), and Xero (ASX:XRO).
Energy is the ‘fake news’ battlefield of today.
I’m continuing on from last week’s discussion on energy and why global targets aren’t in line with reality.
If you remember, I discussed how we’d need a monumental boom in the supply of certain key battery minerals by 2030 if we were to have even a slim chance of reaching global targets.
[Editor’s note: By the way, my colleague Callum Newman thinks he has found several small-cap mining stocks that could be set to benefit from this surging spike in demand. Check out what he’s tipping here…]
I was/am sceptical this will happen in time.
So the follow-up question I’m posing today is this:
If neither renewables nor nuclear are going to come online as fast as we hope, and you believe we need urgent action, shouldn’t all options be on the table?
I’m sure most rational people would say yes.
Which brings me to a much-attacked industry.
Google ‘Bitcoin mining and climate change’, and you’ll get a sea of articles on why it’s terrible for the environment.
But these articles are mostly the very definition of fake news.
They’re rarely based on independent facts and are often from those who hate Bitcoin [BTC] because it’s a form of money they can’t control.
For example, clothes dryers use more energy than Bitcoin mining.
Should we ban the dryers?!?!
Like all good big lies, the truth is diametrically opposed to the lie.
Bitcoin is not only good for the environment but actually good for the sustainability of the energy grid too.
There’s an interesting article you can read about that from international management consultants Roland Berger (not some crypto YouTuber!) if you’re interested.
But I’m not going too deep into that topic today.
Instead, I want to focus on one very specific use case of Bitcoin mining.
And how it could be the short-term answer the world needs to manage our transition to a greener energy mix…
Read full article here.
Saudi Aramco, the world’s largest integrated oil and gas company, expects oil demand to continue to grow for the rest of the decade.
Aramco released its Q2 FY22 results overnight, reporting a record second quarter, with net income rising 90% year-on-year.
Net income for the quarter totalled US$48.4 billion, with Aramco declaring a US$18.8 billion dividend to be paid in the third quarter.
Aramco president and CEO Amin H. Nasser commented on the global outlook for oil.
‘While global market volatility and economic uncertainty remain, events during the first half of this year support our view that ongoing investment in our industry is essential — both to help ensure markets remain well supplied and to facilitate an orderly energy transition.
‘In fact, we expect oil demand to continue to grow for the rest of the decade, despite downward economic pressures on short-term global forecasts.’
ARAMCO: “We expect oil demand to continue to grow for the rest of the decade, despite downward economic pressures on short-term global forecasts.”
— Dan Murphy (@dan_murphy) August 14, 2022
After a sharp fall in the copper price over the last few months, many copper stocks have been under pressure.
But the long-term strong demand outlook for copper remains. It is one of the key future-facing metals that will see an immense lift in demand over the coming decades.
BHP knows this, and they are stepping up to buy assets during market weakness. The copper price has also bounced from oversold levels over the past month, which is adding to the buying pressure in copper stocks.
If BHP thinks the time is right to start buying copper stocks, perhaps we should follow their lead. Who will be the next copper stock to see a bid if they can’t get their hands on Oz Minerals?
Electronics retailer JB Hi-Fi saw online sales rise 52.8% in FY22 to $1.63 billion, representing 17.6% of total sales, up from FY21’s 11.9% share.
However, in the second half of FY22 — when all stores were open — JBH’s online sales were 11.9% of total sales.
Electronics retailer JB Hi-Fi is currently down 1.2% after releasing its FY22 results.
In its full year report, JBH noted that its core electronic goods offering is considered ‘less discretionary than in the past’, arguing:
The Group is exposed to both the upside and downside of consumer spending cycles and changes in consumer demands. A reduction in consumer spending and demand (for example, due to an increase in inflation) may lead to a decline in the
Group’s sales and profitability. The Group maintains its relevance using its strong market position supported by its low price proposition. Many of the products sold by the Group are now considered less “discretionary” than in the past, with products such as mobile phones and computers now being seen as “essential” by many consumers. The Group’s stores, which are both in convenient and high traffic locations, seek to maximise both destination and impulse sales, reflected in the Group’s high sales per square metre of floor space.
The S&P/ASX 200 is up 0.45% in early Monday trade.
The biggest advancers:
The biggest decline was suffered by energy stock Beach Energy, currently down 11%.
Bendigo and Adelaide Bank is down 7.5%, after FY22 results showed statutory earnings falling 6.9% and return on equity remaining flat at 7.72%.
Tacked onto the announcement it has received a $1.06 billion takeover from Thoma Bravo, Nearmap gave a brief update on its financial performance to 30 June 2022.
NEA expects group ACV portfolio to be $159.9 million at constant currency, at the top of its initial FY22 guided range of $150-160 million.
Group ACV portfolio was $128.2 million in FY21.
Nearmap expects its cash balance to be $93.7 million, having used $20 million of capital raise proceeds during the financial year, having guided for $30 million.
However, this $20 million capital raise utilisation figure excluded litigation costs.
In its most recent half-yearly, Nearmap reported ending the period with cash and cash equivalents of $109.8 million.
Nearmap, the aerial imagery business, received a non-binding takeover proposal from Thoma Bravo, a software investment firm with US$115 billion in assets under management.
Nearmap has granted Thoma exclusivity for seven days commencing today, saying Thoma’s due diligence is ‘now at an advanced stage and encompasses all financial and other valuation-critical due diligence supporting the $2.10 Proposal.’
Thoma offered to acquire 100% of NEA shares for $2.10 cash per share, implying a $1.06 billion valuation for Nearmap.
Nearmap shares closed at $1.51 a share on Friday.
Thoma’s offer represents an 83% premium to Nearmap’s closing price of $1.15 on July 5 2022, which was the day prior to NEA first receiving the proposal.
As part of the exclusivity agreement entered by the parties to perform due diligence, Nearmap agreed to an expense reimbursement fee capped at US$3 million if during the exclusivity period or within six months after expiry of the exclusivity period:
At market open on Monday, Nearmap shares were up 25%.
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