26 May 2022

Here’s what’s new from Stockfox this week:

  • Time to short sell?
  • Official cash rate rises to 2%.
  • Transport companies that’ve flourished and those that have tanked.

Market Summary

The market has had a sharp decline in recent weeks and uncertainty is definitely present. However, there are always opportunities no matter which way the market is moving. One such opportunity is short selling.

Short selling involves selling a share first, then buying it back at a lower price (hopefully), profiting from the difference. Essentially, it is the inverse of conventional investing. The graph above is an example of a short sell some of our clients have done. Short selling is a great way to capitalise on a falling market during uncertain times.

What’s Trending

We all know inflation is running rampant in New Zealand. The Reserve Bank raised the official cash rate (OCR) yesterday to 2%, from 1.5%, in a bid to bring it back down.The Bank also increased its forecast of how high the OCR might rise over the next three years.

Find out what this means for investors here.

Tip of the Week

This week’s tip of the week is for an NYSE-listed beverage manufacturer. The company has strong earnings growth forecast for the next two years.

View the tip here.

We’ve issued three new tips this week.

KMD Brands‘ (NZX: KMD) shares are weakening in the face of inflationary pressures. Reliance Worldwide Corporation (ASX: RWC) is almost at a 52-week low and looks set to weaken further. For these reasons, we’ve issued a  SELL: STOP LOSS for both companies to limit further losses. Coca-Cola Consolidated‘s (NYSE: COKE) share price is recovering and has a positive outlook, leading us to recommend buying its shares.

See more of our recommendations and analysis here.

Top Tips

Transportation of supplies and materials has been an issue during Covid-19. Some parts of the industry have thrived, while others have taken a dive.

Here is our most and least successful transport-related tips, respectively, over the past three months.

See the performance of all tips here.

NB: These are examples of just some of 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.

Happy trading!