Cleanaway – Rallies 10%

Posted on | by Leon Hinde

Our “high conviction” buy on Cleanaway Waste Management has produced a 10% return in the past week.

Our upside target has been reached and we expect selling pressure building within the $2.30 – $2.40 price range.

What is your strategy?

  1. Take profit now and be happy with the gain
  2. Use a momentum filter and stick with the trade
  3. Long-term investment 2% yield and a good 2 – 3 year outlook

If you’d like to discuss Cleanaway or our other high conviction holdings, please call me on 1300 614 002.

CIMIC – Funding Update

Posted on | by Leon Hinde

CIMIC’s global parent, Grupo ACS, will receive a cash injection of at least $4.5 billion if it accepts an $8 billion offer from French infrastructure group VINCI for its industrial services business.

Should the above transaction proceed, it will relieve pressure on its global cash flows.

The class action lawsuit filed against CIMIC, which alleges the group used supply chain financing to mislead investors about its cash flows and did not fully disclose the financial problems in its Middle Eastern joint venture, remains a negative overhang.

The share price has rallied 10% over the last week, which can be attributed to the funding news for the parent entity. We continue to like the investment theme and exposure to local infrastructure development, which CIMIC offers.