4 December 2017

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?
The industry is positioned in the latter stages of a cyclical trough from where it would typically need a fresh source of economic growth to carry it to the next stage of a cyclical upswing.  While global growth has improved and the attaching risks have diminished, sources of stronger growth are highly limited by policy moves favouring a slowdown (e.g. Brexit,Chinese lending constraints and tightening US monetary policy) rather than an acceleration.    More...

Market Directions
Resource sector equities have lagged other market sectors despite the improved global growth  profile and more favourable excahnge rates suggesting sector investors are more in tune with financial markets than mainstream equity markets.  Commodity price momentum has lost some force although exploration stocks - which had been lagging the sector performance - have attracted more attention and have been outperforming other parts of the market in recent weeks.  More...

Portfolio Performance and Positioning
Portfolio gains during November were driven by stronger exploration and development stock performances rather by the more mature and larger cap alternatives in Phase III. Negative portfolio returns in the past week have generally reflected across the board weakness in the sector.  Minor adjustments were made to the portfolio weightings in the past week which retains a larg cash (or alternative asset) position in anticipation of future stronger cyclical conditions.  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.    
For company reports & ratings...

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

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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.

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