Sectors: Manufacturing
ARB –13%: The stock fell after 1H FY26 results came in softer year-on-year, reflecting a tougher domestic and OEM backdrop, but the underlying message was better than the headline suggests. Management reiterated confidence in a second-half improvement, supported by a healthy order book and strong offshore momentum.
We’ve written extensively about energy demand in a new data heavy world. AI/data centres, electrification and on-shoring are all pushing baseload needs higher and tightening power markets. That’s fuelling renewed interest in nuclear, but it’s also catalysing on-site/commercial solar where economics, speed-to-deploy and energy security matter. FSLR sits squarely in that area: US-made, utility-scale capable, and increasingly leveraged to corporates that want price certainty and domestic supply.
ARB +3.83%: Tougher conditions domestically in after-market 4wd accessories offset by strong export momentum.
A2M +19.66%: Had a strong day on the back of a very good 1H25 result, which demonstrated great execution across all aspects of the business. Revenue was 10% higher than expected driving bigger earnings beat and we’ll likely see chunky upgrades filter through on FY25 estimates.
BSL +12.98%: Delivered a strong 1st half result driven by increased Colorbond volumes in Australia, implying residential demand may be recovering more quickly than expected.
As major indices continue to track around all-time highs, we’re becoming more conscious of looking beyond the well-known names in the US market that have been primary drivers of the strength, into more industrially focused companies that will benefit from a broadening of the market rally.
The widely held view is that solar and renewables, more generally, will have a tougher time under a Trump administration than they would under Kamala Harris. As the chances of that occurring have firmed, FSLR has been sold off – a logical reaction. Our 6% holding in the International Equities Portfolio is now only up ~8% as the stock pulled back from a recent high of $US300 down to $US200.
ANN’s shares jumped +8.9% on Tuesday after the medical glovemaker forecast EPS for the full year of $1.07-$1.27, ahead of consensus on in-line revenue but lower operating costs.
Ricky Sandler, the CIO at New York-based hedge fund Eminence Capital, presented first at this week’s Sohn Hearts and Minds conference. The order in which the 11 fund managers present is decided by how well their stock picks have done from last year’s event, a great idea for accountability! So, while Ricky was first up having last year’s best bet, Jun Bei Lu from Tribecca was the last cab off the rank!
