Here’s another update whilst under lockdowns with no clear end dates in sight? We can only hope that our freedom to move will return by November if we reach the 80% vaccination targets by October 2021. This is having an impact on share valuations as investors struggle to predict the winners and losers from the lockdown effects but when you look beyond the short term effects it doesn’t make much sense to pay too much attention to that. So we will continue to focus on investments that are expected to do well into the future no matter what happens with Covid-19 and a time when at least NSW is open again to the world. We could well see other Australian states having Quarantine facilties operating well into 2022 for Australians when NSW will probably only continue with a limited quaratine operation for people from higher risk and unvaccinated regions.
That means Qantas could reopen international travel through NSW, as early as December, whilst having very limited flights to the other states. This could explain why their shares surged back today despite a recent loss of about $1.7Billion.
A2 Milk suffered from a higher than expected reduction in profits (from $385m to $80m) but there were many reasons and writedowns to explain the falls. However, this is an innovative business which is already finding ways to prepare for the future demand and baby boom that has already started both from Covid-19 and China’s efforts to increase their young population.
Other shares that have boosted the portfolio are Bigtincan (BTC) and Archer (AXE) but there’s still many shares that are holding us back for now which could turn around in the year(s) ahead and patience should reward us.
Take a look at the detailed portfolio here and feel free to discuss any ideas and make any suggestions you have at any time or at one of our zoom meetings.
Here’s the positions from Interactive brokers:
This is the Bell Potter positions:
Finally Cryptos have been doing well (average returns around 27%) but recently having a small correction (we were above $26,000 a few days ago) which is expected to form a new base before resuming the upward trends again – possibly next week? The best performers continues to be ADA and Luna.
