Report Cover Page

Contents

Where are we in the Cycle?
Despite many hopes in the industry that sector asset prices may stabilise, there are indicators still showing that the unprecedented industry re-pricing has room to run. To start the year, here are five arguments for and against.   More...

Market Directions
Heavily oversold markets appeared to stabilise at the end of the week but the primary sources of nervousness remain. Exchange rates and high yield bond prices are two of the key market features with an impact on the resources sector – both negative.   More...

Portfolio Performance and Positioning
The portfolio models are tracking the trajectory of broader sector prices. Model cash positions remain very high. The macro model is ahead of the benchmark in January as it was in December and has been for nine consecutive months and for all but three months out of the past 24.    More...

Stock Reviews and Rating Analysis
PortfolioDirect rating updates have been published recently for Orocobre (ORE:AU), Danakali (DNK:AU) and Australian Vanadium (AVL:AU). Each of these companies is out of the mining mainstream insofar as they are seeking to develop assets that do not rely directly on Chinese or global economic growth. Orocobre and Australian Vanadium are tapping into changes in battery storage technologies. Danakali is looking to supply fertiliser raw materials for the global agriculture industry. The latter two are in the late stage of Phase I, the riskiest part of the industry development cycle. The Orocobre rating has been downgraded because missed production targets have had a detrimental impact on valuation, the key determinant of a rating for a Phase II company in the PortfolioDirect framework.
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DAILY BRIEFING: The PortfolioDirect market diary offers brief thoughts on current issues affecting sector investment strategies.

Although the statements of fact in this communication have been added from and are based upon sources E.I.M. Capital Managers Pty Ltd, the publisher, believes to be reliable, their accuracy is not guaranteed and any such information may be incomplete or condensed.

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