19 September 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
A strongly positive tone returned to the equity market as tensions over global trade and monetary conditions both eased.   The rising yields on longer dated government securities buoyed the financial sector earnings outlook, helping sustain the broader market.   Lower government bond yields impacted gold prices which turned lower just as they had risen when yields were falling.   Lowered trade disruption risk perceptions added strength to metal market prices although the strong nickel price rise of recent weeks stalled.  The apparent contradiction between movements in bond yields and copper prices in recent weeks was partially reconciled with the reversal in bond prices.        More...

Portfolio Performance and Positioning
Phase I companies continued to produce the relatively strong gains evident over the past three months. The Phase II negative return for the week was due to the write-down of two investments which were being carried at their last traded prices but which face possibly insurmountable odds in trading again. Three new Phase II stocks covering oil and gas, graphite and zinc developments were added to the portfolio.  The Atrum Coal position was trimmed after strong recent performance led to a high weighting.     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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