NAB – Warning Plays Out

Posted on | by Leon Hinde

National Australia Bank 1H2020 profit falls by 51%.

The company also moved quickly to shore its balance sheet following the initial impact of COVID-19 related business provisions. NAB will raise $3.5bn via an institutional placement at $14.15 per share.

The placement will be done at a 10.5% discount.

Our bearish warnings on NAB are still yet to play out completely, as we see further raisings likely in the Sept quarter.

 

 

Macquarie Bank – Trending Lower

Posted on | by Leon Hinde

We’re cautious about the outlook for Macquarie Bank and suggest investors remain on the short side of the trade as long as the price action trends lower.

Our reference tool for tracking the move lower is the 10-day average. A break back above the average will act as a stop loss to the “short position”.

BHP & RIO – Iron Ore Prices Reviewed

Posted on | by Leon Hinde

The following graph displays the long term trend in Iron Ore prices and below that is the 1-year price history.

Iron Ore prices have held up surprisingly well during the early stages of the market sell-off.  We do have some concerns that resistance remains in the high USD$80 per tonne range and the pressure is now to the downside.

This forecast feeds through to our forecast for BHP & RIO, where we feel investors are best served by waiting for entry levels at lower prices.

9-year history

1-year history