NCM

We spend a lot of time convincing ourselves not to buy NCM. It is often quite tempting.

However, it is also very difficult (almost impossible for us) to escape the following.

We have a backdrop of of high inflation.

We have a tailwind of low real rates.

We have an environment of elevated market vol.

We have a revenue driver of high gold prices.

We have a revenue driver of high copper prices.

And NCM can’t meaningfully re-rate.

And that, a bull would say, is the opportunity! You’ve identified a stock that’s undervalued! Buy it!

But flipping the question, what would make it re-rate, if all that doesn’t, or won’t?

And so we sit on the side-lines again, with this one.

Important Information: This document has been prepared by Aequitas Investment Partners ABN 92 644 165 266 (“Aequitas”, “our”, “we”), a Corporate Authorised Representative (no. 1284389) of C2 Financial Services, (Australian Financial Services Licensee no. 502171), and is for distribution within Australia to wholesale clients and financial advisers only.

This document is based on information available at the time of publishing, information which we believe is correct and any opinions, conclusions or forecasts are reasonably held or made as at the time of its compilation, but no warranty is made as to its accuracy, reliability or completeness. To the extent permitted by law, neither Aequitas nor any of its affiliates accept liability to any person for loss or damage arising from the use of the information herein.

Please note that past performance is not a reliable indicator of future performance.

General Advice Warning: This document has been prepared without taking into account your objectives, financial situation or needs, and therefore you should consider its appropriateness, having regard to your objectives, financial situation and needs. Before making any decision about whether to acquire a financial product, you should obtain and read the relevant Product Disclosure Statement (PDS) or Investor Directed Portfolio Service Guide (IDPS Guide) and consider talking to a financial adviser.

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