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Contents

Where are we in the Cycle?
The duration of the current cyclical drawdown has been reappraised as a weakening macro landscape points to a lengthier period of adjustment than previously anticipated before prices stabilise and begin to improve.   More...

Market Directions
Recent market volatility is indicative of what is to come as doubts arise about how effectively Chinese policymakers can achieve a targeted outcomes. Bond price trends are suggesting further finance tightening for early stage developers. Market conditions are favouring larger cap stocks.    More...

Portfolio Performance and Positioning
The portfolio models retain record cash positions - consistent with a spread of investments across the three development categories while at least matching the benchmark index performance.   More...

Stock Reviews and Rating Analysis
Universal Coal (UNV:AU) - which had been rated 4 on the 5 point PortfolioDirect stock rating scale in a 17 July 2015 report - has received notice from an existing shareholder of an intention to bid for the company. Universal Coal will quite rightly claim that the bid undervalues one of the few listed coal companies successfully achieving its development goals and capable of operating profitably in historically tough market conditions. Investors may benefit from an upward adjustment to the mooted bid price if the bidder is willing to haggle to get agreement but this will be of only marginal significance as the major value attraction from owning the asset will have been removed.
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DAILY BRIEFING: The PortfolioDirect market diary offers brief thoughts on current issues affecting sector investment strategies.

Although the statements of fact in this communication have been added from and are based upon sources E.I.M. Capital Managers Pty Ltd, the publisher, believes to be reliable, their accuracy is not guaranteed and any such information may be incomplete or condensed.

All opinions and estimates in this communication constitute judgments by E.I.M. Capital Managers as of the date of this communication and are subject to change without notice. The publisher is under no obligation to make public any change in view about any matter referred to in this or any linked documents.

No references to past investment performance should be taken to indicate anything about future performance.

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