they do stick their necks out a bit with more proactive research on small & midcaps, recently, which i appreciate.
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I do not have time for Forbar research but coverage of a stock with a ‘BUY’ recommendation from them is nevertheless positive - mainly because the stock can then be recommended by their advisors and can be included in their clients’ managed portfolios (whether discretionary, monitored and/or managed funds).
Can result in massive buying as Forbar manages tens of billions of dollars of their clients’ funds.
So next week will be very interesting when the broking & funds industry returns to work and portfolios are adjusted to reflect their 2022 investment strategy.
Yes next week will be interesting. Expecting Craig’s to release thier research note after the massive upgrade in December.
Spoke to Craigs. The Stu analyst has left so will be re allocated. Hard to resist at current price.
Interesting price action today on no news ?
Ive got 2 theories - both probably wrong.
After years and years of uncorrelated poor returns STU and other turnarounds (Rakon, MHJ, etc) have developed exceptionally high asset betas. After their huge runs they are left highly sensitive to market movements.
Fears over house prices. Dropping house prices a strong indicator of future residential construction. The later also a good future indicator on broader economic activity and non resi construction. I think the market waking up to the fact property prices have peaked.
Or some fat fingered trader named chuck cocked up his order and I am just a bit of a black hat.
https://www.nzherald.co.nz/nz/politi...GY6LXVF4ZUBCE/
There is definitely concern out there that residential property prices have peaked and a lag effect on construction activity will emerge.
Residential construction activity will slow down from the current frantic activity from 2023 but infrastructure & commercial/industrial construction activities will be ramping up then.
The $14.6 billion light rail to link up Auckland per above is a good example.
Wow. Have just seen the price. No I am not the seller. I have confidence that Stu is going to be a great share and the result next month is going to be outstanding. $2.00 not far away. My valuation is over $3.00 so I’m all in and have already rung my broker.