25 November 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
The three major US equity price indices made new records although the index of smaller stocks again hit the ceiling which has prevailed throughout 2019.  US economic growth appears to have stabilised after moderating through 2019, giving equity prices a foundation from which to move higher.  Government bond yields finished the week pointing to a firming in the growth outlook.  The downward bias in the indexes of major global miners persisted. Current levels are little changed from those at the start of 2019 despite the broader strength of equity prices.           More...

Portfolio Performance and Positioning
Phase II stock prices turned overwhelmingly negative in the past week as a wide range of companies on well defined development paths were repriced despite a modest negative return for the benchmark. Nickel exposed stocks have taken a hit over the past few weeks as the metal prices has retraced earlier gains.  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.    
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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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