2 December 2019

Remuneration Report Analysis and Commentary: PortfolioDirect scores annual remuneration reports from ASX listed companies against a consistent analytical framework designed to help assess which reports are most worthy of shareholder support. 
Contents

Where are we in the Cycle?
Of the five PortfolioDirect cyclical guideposts, two are ‘red’ and three ‘amber’.  The cyclical positioning has been classified as ‘downswing’ with decelerating global growth forcing a negative change to expectations, a loss of output momentum in China, the largest national user of metal, and less supportive monetary policy settings than have prevailed for most of the post-2009 period.     More...

Market Directions
US equity price indices continued to track higher with smaller stocks joining the upward surge after having lagged through much of 2019.  Treasury yields remained firm, consistent with a more optimistic view of the growth picture.  Stronger bond yields have been putting downward pressure on gold prices. Metal and mining stock prices have not appreciated in concert with the broader market. Nor have the market leaders declined although weakness has been evident through other parts of the sector. The still high US dollar remains a weight on US dollar denominated commodity prices.             More...

Portfolio Performance and Positioning
Phase I and Phase II stock prices were sharply lower as jitters over global growth intensified as China connected trade talk outcomes with US support for Hong Kong democracy protesters. Partial retracement of strong Phase I gains in the prior two months also had an effect but the market continues to downgrade development companies especially where project approvals were based on more optimistic market outlooks than currently prevail. No changes have been made to portfolio models which remain biased to the Phase I stock category.  Phase I stocks are likely to show less leverage to cyclical weakness since they are starting from already historically low price levels.         More...

Stock Reviews and Rating Analysis 
PortfolioDirect rating reports analyse the quality and risk attributes of proposed mineral developments.  Rating criteria apply to mining and oil and gas stocks at any stage of development.  PortfolioDirect uses a five point rating scale to measure the risk adjusted quality of proposed mineral developments or companies.    
More...

The 'Steak or Sizzle' blog provides summary judgements on the top performing ASX-listed resources stocks. More...

Although the statements of fact in this report have been added from and are based upon sources the authors of the report believe to be reliable, their accuracy is not guaranteed and any such information may be incomplete or condensed.  To the extent permitted by law, the authors of the report are not liable for any loss or damage arising as a result of reliance placed on the contents of this report.  

All opinions and estimates in this communication constitute judgments by the authors at the report date and are subject to change without notice.  The report publisher is under no obligation to make public any change in view about any matter referred to in this document.    

No references to past investment performance should be taken to indicate anything about future performance.

This communication is directed only to Australian wholesale investors and licensed financial advisers for information purposes and is not intended as an offer or solicitation with respect to the purchase or sale of a security.

Copyright 2018 PortfolioDirect All Rights Reserved.