Posts

Showing posts from January, 2018

PS - Race update - lithium beats marijuana, crypto, China brand demand themes

Image
In mid-December we had a bit of fun exploring which of the key speculative themes of calendar 2017 had run hardest on the ASX (see original post here ). Today we published the December update for the Equitable Investors Dragonfly Fund and included an update on that race. We declare lithium the winner (represented in Figure 1 below by the grey line with long dashes). The indices presented are based on equal-weighted monthly returns for stocks identified as fitting each theme. Figure 1: relative returns of four "buzz" sectors on the ASX (equal-weighted portfolios)   source: Equitable Investors, Thomson Reuters, companies' data  Equitable Investors has some exposure to the China theme directly through food brands and through food testing. This is the only one of the four themes detailed where there is significant revenue already flowing and the enterprise values, on average, have any real connection to a revenue base. Figure 2: Average revenue & EV of stocks

Disclaimer

Nothing in this blog constitutes investment advice - or advice in any other field. Neither the information, commentary or any opinion contained in this blog constitutes a solicitation or offer by Equitable Investors Pty Ltd (Equitable Investors) or its affiliates to buy or sell any securities or other financial instruments. Nor shall any such security be offered or sold to any person in any jurisdiction in which such offer, solicitation, purchase, or sale would be unlawful under the securities laws of such jurisdiction.

The content of this blog should not be relied upon in making investment decisions.Any decisions based on information contained on this blog are the sole responsibility of the visitor. In exchange for using this blog, the visitor agree to indemnify Equitable Investors and hold Equitable Investors, its officers, directors, employees, affiliates, agents, licensors and suppliers harmless against any and all claims, losses, liability, costs and expenses (including but not limited to legal fees) arising from your use of this blog, from your violation of these Terms or from any decisions that the visitor makes based on such information.

This blog is for information purposes only and is not intended to be relied upon as a forecast, research or investment advice. The information on this blog does not constitute a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Although this material is based upon information that Equitable Investors considers reliable and endeavours to keep current, Equitable Investors does not assure that this material is accurate, current or complete, and it should not be relied upon as such. Any opinions expressed on this blog may change as subsequent conditions vary.

Equitable Investors does not warrant, either expressly or implied, the accuracy or completeness of the information, text, graphics, links or other items contained on this blog and does not warrant that the functions contained in this blog will be uninterrupted or error-free, that defects will be corrected, or that the blog will be free of viruses or other harmful components.Equitable Investors expressly disclaims all liability for errors and omissions in the materials on this blog and for the use or interpretation by others of information contained on the blog.