9 September 2021

Welcome to another issue of Stock Take, our weekly market update. Here’s a look at what’s new in the markets.

Market Overview

The New Zealand stock market (gold line) has produced a return so far this year of around zero, one of the worst year-to-date performances in many years.

Last year, in the same period, it managed at least 2%, and that included the Covid-induced panic in the first quarter of 2020 that saw the market down by 25% at one stage.

Given this lackluster performance, it’s encouraging to see some companies bucking the trend. Best performers on the NZX so far this year are GPS crystal maker Rakon (RAK) (black line), tree genetics company Arborgen (ARB) (blue line) and carpet maker Bremworth (BRW) (red line), all of which have produced gains of at least 90%.

There are no guarantees this level of performance will continue but, for my money, Rakon appears to have the momentum to keep going up for a while yet.

Tip of the Week

This week’s tip of the week is for a NYSE-listed agricultural science company that develops, markets and sells crop protection solutions to crop growers.

The company’s stock price has recovered from a short-term dip due to a recent adjustment in earnings guidance, however the long-term outlook is positive.

Read the tip here.

Top Tips

See the results of our best performing NASDAQ tips over the past three months.

See the performance of all Stockfox tips here.

NB: These are examples of only some Stockfox trading recommendations. They are not a reflection of the success of all Stockfox tips, nor are they necessarily an indication of the success of any future Stockfox tips. If you act on our advice, there is no guarantee as to the repayment of your investment or any particular rate of return.

What’s New

It was great to share our market insights on the radio again last week. We were approached by Radio NZ for our thoughts on logistics provider Mainfreight’s possible share split.

The interview ran on their Morning Report programme in the early business news segment on Friday 3rd September. Listen to it online here.