Rudi’s View: Banks, Bapcor, And Woolworths

rudi-views
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 | Jun 21 2019

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

-A Confirmation From Aussie Banks
-What's There To Worry?
-Conviction Calls
-Morphic Explains Shorts For CCL, Woolies

-Rudi On Tour
-Rudi Talks


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

By Rudi Filapek-Vandyck, Editor FNArena

Conviction Calls

Differences in views and opinions are what maketh the share market, or so the adage goes and post UK/Brexit-inspired profit warning this has also become apparent in views about Link Administration ((LNK)).

Whereas the Morningstar Model Income Equity Portfolio has now used some of its excess cash to add shares in Link Administration on the expectation that risks and bad news have been priced in and there should be improvement on the horizon, portfolio managers at stockbroker Morgans beg to differ; they sold out of the stock because risks are considered too high, and the outlook may just disappoint a while longer.

In Australia, Morningstar suggests industry super funds gaining market share will play to Link's benefit, but Morgans sees earnings pressure continuing because of regulatory changes to super.

Morgans' Growth Model Portfolio did top up its holding in OZ Minerals ((OZL)) seeing the sizable share price fall since early April as a buying opportunity. Over at Wilsons Advisory and Stockbroking, yet another profit warning from The Star Entertainment Group ((SGR)) proved one too many.

Wilsons Australian Equities (Income) fund has sold out of Star Entertainment, ignoring the apparent value on offer post share price shellacking, instead focusing on "increased uncertainty around the earnings base of the business".

At the same time, holdings in ANZ Bank ((ANZ)) and CommBank ((CBA)) have been increased to push the portfolio's exposure to Australian banks to Marketweight, while keeping the financials sector as a whole on Overweight.


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