A shake-up at the top of our shares race as the market surged, leaves a familiar face in front on the home stretch.
Yes, the same one who was coming second last only two weeks ago.
Thanks be to Metallica Minerals that started to gain ground a couple of days before its quarterly “activities” (it isn’t actually producing anything) report was issued and so might raise eyebrows in some quarters, but not here.
Also exchanging places were fund manager John Aldersley, the race’s dark horse, who has sidled into second spot with no spectacular calls but perhaps more tellingly no duds either.
It has to be admitted that even yours truly picked two lemons and that still leaves the race wide open.
In third spot is chartist Richard Pritchard, previously the frontrunner, who has the second best stock in Poseidon Nickel, a re-structured and re-floated version of the only Australian stock to ever hit $280.
And that was in 1970. In today’s money that’s $2859 a share so don’t tell me this market is in a bubble, especially while I’m winning.
Four of our racers are beating the market so far. An average 10 stock portfolio starting with $100,000 would have climbed to $103,094 over the past three weeks, the market’s biggest gain so far this year.
Despite the high dollar, mining stocks have been among the best performers with supply constraints boosting copper and nickel prices.
Even iron ore prices, where there’s the opposite supply issue, are faring better than expected.
Profit reporting starts in earnest this week and the fact there was a much more subdued confession season of profit downgrades beforehand augurs well.
Companies reporting this week include Cochlear, Flexigroup, Henderson Group, News Corp, REA Group, Rio Tinto, Tabcorp and Transurban.
An average 10 stock portfolio starting with $100,000 would have climbed to $103,094 over the past three weeks.David Potts