Report Date: 23 May 2016

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Where are we in the Cycle?
 Exchange rate moves (and associated interest rate expectations) are still dominating metal price directions.  Improved U.S. growth outcomes have come only after earlier momentum losses and do not signal a significant change in the pattern of growth.  More...

Market Directions
Markets seem to have entered a phase of frequently occurring and small financial market changes in expectations rather than prolonged trends in one direction.    More...

Portfolio Performance and Positioning
Reflecting the macro environment, stock prices have been losing their drive across all sections of the market.  Phase III companies previously benefitting from resurgent sector expectations have continued to lose ground.  The macro portfolio model outcome has been steady for the past month with position reductions resulting in a continuing buildup in cash.       More...

Stock Reviews and Rating Analysis 
Platypus Minerals (PLP:AU) is one of the most recent entrants into the lithium space.  It carries all the risks of the others but has one important differentiating feature: it is merging with a privately held company with a mineral extraction technology capable of processing hitherto uncommercial lithium-bearing ores.  A PortfolioDirect report dated 13 May 2016 gave the company a mid-range quality rating with a high risk rating pending the outcome of a shareholder meeting next week and a hefty rights issue being finalised. Until then, investors should tread cautiously.  After that, there will be scope for rating upgrades as risks come down and the company shows how it can differentiate itself from the growing number of lithium look-alikes by taking advantage of its unique positioning.       
 For company reports & ratings...

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DAILY BRIEFING: The PortfolioDirect market diary offers brief thoughts on current issues affecting sector investment strategies.

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