“There was nothing specific happening in the market apart on Thursday from a general appetite to get towards 6,000 points,” says Karl Siegling, portfolio manager at Cadence Capital. “The last time the All Ordinaries broke through 6,000 points was 11½ years ago and it’s a barrier that has been tested already twice this year. From […]
Karl Siegling, provides his views on Harvey Norman as part of an interview series with fund managers on a selection of retail stocks. Siegling, a noted contrarian, has an unusual thesis on Harvey Norman: it would be an attractive acquisition for Alibaba Group Holding (the Chinese e-commerce giant) or even Amazon.
Cadence Capital managing director Karl Siegling said he was optimistic on Macquarie’s growth prospects especially in light of the interim result. “It is going to $100 in the next couple of months and over the next year between $105 and $110.”
Karl Siegling discusses the market pushing the 6,000 point barrier.
“Iron ore is in a decidedly downwards trend,” said Mr Siegling. “It doesn’t look like its got any reason to head higher in the short term and that’s likely to weigh on resources stocks, but of course, Australian miners are quite diversified so there are plenty of other markets to keep them happy.”
Chris Garrard from Cadence shorted the company at $70 in October 2016. “This is a very rough proxy, but if it’s growing at 20%, it could move to a 20 P/E; then we’d see the stock coming down another $10.”
While some research analysts see the new bank taxes as yet another challenge for the sector, Cadence Asset Management’s Karl Siegling shrugs off any concerns around the levies on Macquarie’s bottom line. “The bank levies affect a small percentage of Macquarie’s earnings,” he said. “It affects a very large percentage of the major four banks […]
“At the moment, silver doesn’t seem to be seen as a proxy for certainty at all, not in the way that gold does,” says Karl Siegling, portfolio manager at Cadance Capital. But should the silver price head north, traders might experience a protracted, short squeeze.