LIKE
Michael likes WiseTech Global (WTC). “The logistics group was hot with a one-two punch last week. Pressure on techs generally after an Afterpay Touch downgrade was exacerbated by a short-seller’s “report”,” he says.
“WTC is making money, provides a value add service and has a consensus long-term growth rate north of 30%.
“The “widow-maker” short bank trade that crippled so many US hedge funds was a demonstration that US investors are often unable to grasp the Australian business environment.
“In my view, this is another example and a potential opportunity for investors. By the way, despite 35 years as a trader, I’d never heard of J Capital Research (the report author) before last week,” he adds.
Source: Google
DISLIKE
Michael doesn’t like Telstra (TLS). “The comments from Chair John Mullen last week around the NBN and the plea for lower wholesale pricing, could be interpreted as a desperation call,” he says. “Attempting to push losses on to taxpayers via the NBN may be a sign there are no more levers to push within the business.
“Sol Trujillo got away with beating up the government but an independent NBN, an invigorated regulator and stronger and more sophisticated competitors are in my view all reasons to bail on Telstra while it is still Australia’s largest telco,” he adds.
Source: Google
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