10 December 2018

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?
None of the five PortfolioDirect cyclical guideposts are turned to ‘green’.  The cyclical positioning has been reclassified as ‘downswing’ with global growth decelerating and less supportive monetary policy settings. Unusually prolonged supply side constraints which have been offsetting the effect of weak demand growth are losing their impact as newly initiated production starts to flow in some metal categories.    More...

Market Directions
Highly volatile equity prices finished the week on a downswing as worries about slowing US and global economic growth resurfaced as issues, adding to pressures from trade policy tensions and fears that the US Federal Reserve could precipitate a recession in 2019. Metal prices remain on track for a continuing cyclical downturn. The leading mining stocks continue to hold up relatively well but the gap with the far more numerous smaller end of the sector is widening as the effects of risk aversion intensify.      More...

Portfolio Performance and Positioning
Large losses outside the market leaders have been widespread with the weakness evident in the portfolio results, with a large majority of stocks declining.  Phase I stocks weakened in the first days of December after posting a small gain, against the trend of the broader market, in November.  The relatively large weighting in Phase I companies has been retained  to take advantage of their strong leverage to changes in sentiment at the bottom of the cycle. No changes have been made to the portfolio models.    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.    
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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.

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