Report
EUR 116.48 For Business Accounts Only

Aussie Equities Month in Review (Sept 2018)

  • Giving Back Reporting Season Gains.
  • Hitting Valuation Ceilings.
  • Financials Under Pressure.
  • The sell-off caused declines in short-positioning.
  • Underperformance provides a little more valuation support.
  • Domestic Economy Tracking In-Line with Our Expectations.
Underlyings
Afterpay Limited

Afterpay Touch Group operates a Pay Later business and a Pay Now business, which operates across three divisions: Mobility and Payments, Health and Retail Services. Through Pay Later, Co. focuses on providing a customer and retail centric, omni channel retail service that facilitates commerce between retail merchants and their end-customers. Co. delivers its services by providing a platform that allows retail merchants to offer the ability for customers to buy products on a "buy now, receive now, pay later" basis. Through Pay Now, Co. owns a proprietary software platform (The Touch System Platform) that enables consumers to quickly and simply purchase products.

Aristocrat Leisure Limited

Aristocrat Leisure is a provider of gaming solutions. Co. is engaged in the design, development and distribution of gaming content, platforms and systems. Co.'s products and services include electronic gaming machines and casino management systems. Co. also operates within the online social gaming and real money wager markets.

Cochlear Limited

Cochlear is a for-profit entity and operates in the implantable hearing device industry. Co.'s implant systems comprise an implant which is inserted during surgery and an external sound processor. As of June 30 2016, Co. sold in over 100 countries and had a direct presence in approximately 20 countries and used distributors and agents in other areas. Manufacturing for the cochlear implant product range is based in Australia. The bone conduction implant product range is manufactured in Sweden. Co.'s supply chain operates with product being distributed from its manufacturing sites in Australia and Sweden to its regional distribution centres in the U.S., the U.K. and Panama.

CSL Limited

CSL is engaged in the research, development, manufacture, marketing and distribution of biopharmaceutical and allied products. Co.'s operations are divided into three segments: CSL Behring, Seqirus, and CSL Intellectual Property. CSL Behring is engaged in manufacturing, marketing and developing plasma therapies (plasma products and recombinants). Seqirus is engaged in manufacturing and distributing non-plasma biotherapeutic products. CSL Intellectual Property is engaged in the licensing of intellectual property of Co. to unrelated third parties. Co. operates primarily in five specific geographic areas, namely Australia, the U.S., Germany, Switzerland, and the U.K.

Galaxy Resources Limited

Galaxy Resources and its subsidiaries are primarily involved in mineral exploration and processing. Co.'s principal activities are production of lithium carbonate and exploration for minerals. Co. manages its businesses by geographic location: Australia operation, which includes the development and operation of the Mt. Cattlin spodumene mine and exploration for minerals; Argentina operation, which includes the development of the Sal de Vida project and exploration for minerals; and Canada operation, which includes the development of the James Bay project and exploration for minerals.

National Storage REIT

NNational Storage is an owner and operator of self-storage centres. Co. is engaged in the operation and management of storage centres in Australia and New Zealand. Co.'s portfolio of owned and managed centres comprised of 105 centres, managing 59,200 storage units around Australia and New Zealand as of June 30 2016. Of the 105 self-storage properties in Co.'s portfolio, ownership is as follows: 60 self-storage centres owned by National Storage Property Trust; 16 self-storage centres operated as long-term leasehold centres (Leasehold Centres); 26 self-storage centres managed for the Southern Cross Storage Group (Southern Cross); and three third party managed centres.

Nextdc Limited

NEXTDC is engaged in the development and operation of independent data centres in Australia. Co. has identified five reportable segments, being each state where Co. operates data centre facilities: Queensland, Victoria, New South Wales, Western Australia, and Australian Capital Territory.

Nine Entertainment Co. Holdings Limited

Nine Entertainment Co. Holdings is engaged in the television broadcasting and program production and digital, internet, subscription television, and other media sectors. Co. manages its business based on two reportable segments: television, which includes free to air television activities; and digital, which includes its Nine Digital Pty Limited subsidiary and other digital activities.

Orocobre Limited

Orocobre is engaged in the project funding arrangements and subsequent construction of Co.'s flagship Olaroz lithium project, resource definition at Cauchari, long term pumping test results at Salinas Grandes, the acquisition of and the subsequent operations at, Borax Argentina S.A.

Sandfire Resources Limited

Sandfire Resources is a mining and exploration company. Co. is engaged in the production and sale of copper, gold and silver; and the exploration and evaluation of mineral tenements and projects in Australia and overseas. Co. has two operating segments: The DeGrussa Copper Mine, a copper-gold mine located in the Bryah Basin mineral province of Western Australia; and Exploration and evaluation, which includes exploration and evaluation of the mineral tenements in Australia and overseas, including exploring for potential repeats of the DeGrussa Volcanogenic Massive Sulphide mineralised system at the Doolgunna Projects and Co.'s investment in Tintina Resources Inc and WCB Resources Ltd.

SpeedCast International Ltd

SpeedCast International is a global network and satellite communications service provider, offering managed networks services in over 60 countries and a global maritime network serving customers worldwide. Co. has four product and services categories which include network services (design, deployment, operation and maintenance of networks), value added services (user applications, network optimisation, network optimisation and monitoring and management), equipment sales (the VSAT terminals and other types of equipment related) and wholesale VOIP (the sale of voice minutes on a wholesale basis to telecom customers). .

Syrah Resources Limited

Syrah Resources is a resource company based in Australia. Co.'s principal activities consisted of the development and construction of the Balama Graphite Project in Mozambique; continued assessment of the use of graphite from the Balama Graphite Project as an input into the production of spherical graphite and recarburiser products; and ongoing exploration and evaluation studies, including further technical investigations into the potential to extract and produce vanadium from the Balama Graphite Project ore body.

Treasury Wine Estates Limited

Treasury Wine Estates is engaged in viticulture and winemaking, and the marketing, sale and distribution of wine. Co.'s wine portfolio includes wine brands such as Penfolds, Beringer, Lindeman's, Wolf Blass, Stags' Leap, Chateau St Jean, Beaulieu Vineyard and Sterling Vineyards. Co. also distributes beer and cider under license in New Zealand and provides contract bottling services to third parties. Co. maintains its operations in four regions: Australia and New Zealand, Asia, Europe, and Americas.

Provider
Macro Strategy Advisors Pty Ltd
Macro Strategy Advisors Pty Ltd

About  us:

  • The business is a Proprietary Limited Australian company that is owned and fully operated by Shane Lee from a small office in Sydney’s CBD.
  • Shane worked for 17 years in Sydney-based senior research roles (economist, equity strategist and bond strategist) in global and regional investment banks and a domestic commercial bank prior to starting Macro Strategy Advisors. These roles straddled the asset classes making him uniquely positioned to advise multi-asset investors. He worked for the Reserve Bank of Australia (RBA) for 3 years as a housing, commercial property and equity market analyst and a liquidity forecasting specialist.  He worked as a structural engineer in Queensland for 10 years prior to his career at the RBA. 

Aim of our business:

  • To partner with our clients in their aim to maximise returns. We provide timely, independent and thought-provoking research on thematic macro issues that are impacting or could impact financial markets. We aim to produce research that prompts our clients to question their assumptions.

Services:

  • A fortnightly research note.
  • Regular presentations and data support delivered by understanding our clients interests and investment process.
  • We also in work in confidence to investigate, analyse and report on issues at our clients direction. This work is done on a project-by-project basis.
  • As an Australian based business, the main focus is analysing how domestic and global issues impact Australian investors. However, our global and domestic insights are also valued by our offshore clients.

Our Edge:

  • Our low cost base relative to our competitors allows us to provide a quality product at a reasonable cost.
  • We are fully independent and don’t support a banking function or any third party. We have no interests other than providing our clients with the best possible research.
  • Our focus is not point forecasting, but providing rigorous analysis and insight. We don’t routinely focus on the top or bottom 10% of likely outcomes to create a headline.
  • Shane’s background in engineering has provided clients with unique insights into global infrastructure and domestic housing issues.

 

Analysts
Shane Lee

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