Allan Gray’s Suhas Nayak on why 2022 could be a year of share buybacks, how Origin sold its interest in APLNG too cheaply, and his wariness around floats.
What sort of year are you expecting 2022 to be in terms of buybacks?
We think there are a number of companies that can and should take advantage of their healthy profits and depressed share prices by buying back their shares. Cyclical companies, in particular, should consider whether there truly are any investments that are better than the one they know the best: their own shares.
Counter-intuitively, this means that as industry input costs go up , AWAC’s margins per tonne actually increase as the costs of refining for other players go up faster than the costs for AWAC. Despite this, AWAC trades at a discount to both greenfield and brownfield capacity additions, and at about 11 times after-tax earnings at spot alumina prices, which we think are not particularly high.A is an opportunity but also a risk for investors in out-of-favour stocks.
While we were clearly early in increasing our exposure to cyclicals through 2019, we think the elastic band has stretched even further since then, and it is in this space where value can still be found. We have also changed our bank exposure recently. Westpac is now the highest weight it has ever been in the fund, which shouldn’t be surprising as it isWe are pretty wary of IPOs. We look at most of them, but haven’t bought into one for over a decade.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Squad Game: Eels 2022 roster changes and best 17The TheParraEels will still be strong in the forwards next season but there are 🙋❓over their depth at hooker and in the outside backs.
Read more »
The road to the 2022 NRL premiership runs through the Sydney RoostersAfter the year from hell, the Roosters are entering 2022 fully loaded and all most of the NRL can do to stop them is pray for mercy.
Read more »
Squad Game: Roosters 2022 roster changes and best 17Put Keary and Collins back into a sydneyroosters side that showed incredible resolve to make it to Week 2 of the finals and you’ve got a bona fide contende🐓
Read more »
FDA approves Pfizer's antiviral COVID-19 pill, plans to increase production in 2022US health regulators authorise the first pill against COVID-19, a Pfizer drug that Americans will be able to take at home to head off the worst effects of the virus.
Read more »
First home buyer hopes for 2022 may be a mirageWarning lights were flashing amber on housing affordability five years ago. They should now be bright red.
Read more »
First home buyer hopes for 2022 may be a mirageWarning lights were flashing amber on housing affordability five years ago. They should now be bright red.
Read more »