BFC3540 Investment Debates – Week 3 – A2M & TWE

Wow wee – we’re at the final week of stock debates. It’s been a pleasure writing and I hope you guys have learnt SOMETHING from these articles!

If you guys have enjoyed these stock debates and want to continue your personal involvement in the markets BUT don’t know where to start – then I highly recommend you come to our event: Your Life, Your Money: Introduction to Investing (yes click this link or else I won’t spoon-feed you investment debates material).

Anyway …

The ASX200 finished +0.3% for the week – looking fairly sturdy. The markets shrugged off the main concern for last week, which was Trump’s trade sanctions with China.

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With that being said, you might be thinking “oh the index finished green we’re awesome” but we’re still lagging behind how the US markets performed.

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I did favour a LONG position in A2M last week – so I hope that most students were able to capture its solid 3.75% gain.

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On the news side of things, it’s again been a quiet one. Most companies don’t tend to release much news – they’re focusing on growing their business! If you wanted to talk about A2 shenanigans, I would refer to my previous articles that touch on their operations (China, US, UK, ANZ and other results).

I certainly feel more confident about how the index will perform next week than last week. But I’m again in the position where if the XJO went -/+ 1-2% either way – I wouldn’t be surprised.

I slightly favour a LONG position in A2, but perhaps to a small holding than last week.

TWE was down 1% for the week, unfortunate if you favoured the wine boi over A2. I did have a friend message me about TWE’s foreign currency exposures – there is a chart in week 2’s articles that describe how currency movements affect TWE’s EBIT. While there isn’t a strong correlation between currency movements and TWE’s share price – a significant move could have a material impact.

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On the news side of things, there isn’t much. I would go back to previous articles that discuss TWE’s operations and financial results.

It’s the last week of your stock debates so if you want to yolo, I would make an aggressive LONG position on TWE for this week.

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