Budget Benefits Car Dealers

Two weeks ago we discussed the leading signals that pointed to Automotive Holdings Group (AHG previously AHE) being re-rated significantly higher on the basis of a profit upgrade from peer AP Eagers (APE), record new car sales for February and March and record low interest rates. Together with a low valuation, attractive 5% fully franked dividend yield and an exceptional chart formation it looked set to move to record territory.

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Benefiting From The Green Energy Movement

Two weeks ago we discussed the huge underlying changes occurring in the global automotive industry and how these long-term shifts were positively impacting the demand for lightweight aluminium – thus, buy Alumina (AWC). Based upon similar fundamental trends there has been uplift in demand for electric and hybrid powered vehicles globally with the biggest beneficiary being Tesla. Other manufacturers have had mixed success with electric vehicles, but mostly this has been due to a woeful product that is too expensive and with the recent fall in energy prices has failed to convince electric is better than combustion.

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New Car Sales At Record Highs – Who’s Doing All The Selling?

Running a proprietary trading desk it is very important that we produce consistent returns on a monthly basis while managing drawdowns and risk. Unlike fund managers with billions under management that run a large portfolio of stocks over the long-term, our focus is significantly more immediate – we just don’t have the luxury of investing millions of dollars and waiting months or years for a return. We need to rewarded within days and weeks otherwise our funds are being wasted. So our focus is not just on finding a great opportunity but timing that great opportunity as well. And in that process we often discover hidden gems. Rarely are they actually penny stocks.

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The Silent Boom In Aluminium

I have been a long-term bull on aluminium and there is a secretly quiet boom that has been occurring for over a decade. Now before discussing this boom, it needs be stressed that this is a boom in usage and not in the aluminium price as we, as investors, are typically accustomed to focusing on. A price boom in aluminium will come with time but there are ways in which investors can profit from now while still being exposed to the future potential of the aluminium industry.

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