Report Date: 26 October 2015


Where are we in the Cycle?
Expectations of further monetary stimulus in Japan, Europe and China are benefiting asset prices but doing little for the growth outlook critical to raw material demand. Currency movements were again detrimental to metal price action.   More...

Market Directions
Recent US labour market statistics have pointed to continued upward pressure on equity prices.  Markets treated the prospect of more monetary stimulus (and a delayed withdrawal of stimulus in the USA) as good news rather than a sign of impending weakness.  More...

Portfolio Performance and Positioning
Gains continued to flow among earlier stage stocks. Portfolio model exposures benefited from the presence of Bannerman Resources, Impact Minerals and Santos. There were no changes to the portfolio models during the week.    More...

Stock Reviews and Rating Analysis 
Rating reviews for Blackham Resources (BLK:AU), Red 5 (RED:AU) and 88 Energy (88E:AU) have been completed recently. Coincidentally, all three are clawing their way back from investment histories which have required them to rehabilitate their investment presence. All have some way to go but have grounds for optimism about their renewed prospects.  Blackham is now funded to start gold production within 12 months. Red 5 still needs to detail its medium term mine plans to fully demonstrate a strong value proposition but profitable production has recommenced.  After reinventing itself as an Alaskan oil explorer, 88 Energy is putting down its first exploration hole in technically prospective areas after previously finding nothing of consequence off the coast of Morocco.    
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DAILY BRIEFING: The PortfolioDirect market diary offers brief thoughts on current issues affecting sector investment strategies.

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