FNArena’s Weekly Insights – August 07 2023
In this week’s Weekly Insights:
-Healthy Health, Wealthy Wealth
-Early Observations
-Conviction Calls and Best Ideas
-FNArena Talks (2x)
By Rudi Filapek-Vandyck, Editor
Healthy Health, Wealthy Wealth
Higher bond yields and a tougher economic outlook have directed the market’s attention to corporate vulnerabilities that previously were hardly ever mentioned.
Think balance sheet and debt; profitability and margins; and asset valuations.
This is why companies like Audinate Group ((AD8)), Megaport ((MP1)), SiteMinder ((SDR)), and Xero ((XRO)) are now being judged on their ability to achieve net positive cash flow, and accountancy profits.
This is also why most REITs listed on the ASX (and elsewhere) are trading at a notable discount to their intrinsic valuation; the market fears too much debt, as well as asset devaluations, and prefers to play it safe.
