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?
-Morphic Explains Shorts For CCL, Woolies
-Rudi On Tour
[Non-highlighted parts appeared in Part One on Thursday]
By Rudi Filapek-Vandyck, Editor FNArena
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.