Rudi’s View: Reliance Worldwide, ResMed, And Equity Trustees

Always an independent thinker, Rudi has not shied away from making big out-of-consensus predictions that proved accurate later on. When Rio Tinto shares surged above $120 he wrote investors should sell. In mid-2008 he warned investors not to hold on to equities in oil producers. In August 2008 he predicted the largest sell-off in commodities stocks was about to follow. In 2009 he suggested Australian banks were an excellent buy. Between 2011 and 2015 Rudi consistently maintained investors were better off avoiding exposure to commodities and to commodities stocks. Post GFC, he dedicated his research to finding All-Weather Performers. See also "All-Weather Performers" on this website, as well as the Special Reports section.

Rudi's View | Nov 16 2018

In this week's Weekly Insights (this is Part Two):

-Autumn Has Arrived, Plus Seven Quotes
-ESG Focus Should Be Yours Too
-Conviction Calls
-Bond Yields & Decelerating Growth

-Rudi On TV
-Rudi On Tour

[Non-highlighted parts appeared in Part One on Thursday]

Conviction Calls

By Rudi Filapek-Vandyck, Editor FNArena

Amidst plenty of share market commentary and controversy, portfolio managers at stockbroker Morgans have stuck by Corporate Travel ((CTD)), telling clientele they're are satisfied with management's response to short seller VGI, believing share price weakness might stick around for a while but it doesn't appear to be justified.

In addition, Morgans' Balanced Model Portfolio has added exposure to Sydney Airport ((SYD)) while also reporting a watchlist is being kept with specific focus on major banks, ResMed ((RMD)), Reliance Worldwide ((RWC)) -to buy some more- PWR Holdings ((PWH)), Ramsay Health Care ((RHC)) -with possible intention to sell- and Motorcycle Holdings ((MTO)). The latter is considered "too cheap to sell".

Those responsible for managing the stockbroker's Growth Model Portfolio have been left licking their wounds, as the portfolio includes Corporate Travel and Motorcycle Holdings, but portfolio managers see "compelling value" emerging in lots of places now that the share market experiences melt downs regularly.

For now, the portfolio has added shares in Oil Search ((OSH)) and OZ Minerals ((OZL)), while trimming its position in People Infrastructure ((PPE)). Here the watchlist consists of ResMed, Reliance Worldwide, PWR Holdings, and Motorcycle Holdings.

In terms of yield plays, Morgans' favoured exposures remain Viva Energy REIT ((VVR)) and Centuria Metropolitan REIT ((CMA)) and, in case large cap exposure is a requirement, Stockland Group ((SGP)) and Mirvac Group ((MGR)).



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