What Worked – This week was almost a complete mirror image of last week with Value once again in play, and longer term momentum signals also strong. PER along with 12 month momentum were both very strong, signals that are normally contradictory to each other. Names that are cheap on a trailing PER basis and have performed well over the last 12 months included Fortescue Metals (FMG, +9.9%), Metcash (MTS, +3.9%) and WPP AUNZ Limited (WPP, +11.6%) – all up this week, while the opposite end of the spectrum saw Cardno (CDD, -1.7%), Origin Energy (ORG, -8.5%) and Santos (STO, -9.3%) all furthering their 12 month losses.
ROIC, along with ROE to a certain extent, have made it 2 weeks in a row as a focus on profitability comes into play. JB Hi-Fi (JBH, +6.3%), Cochlear (COH, +2.7%) and Norther Star Resources (NST, +8.6%) all up this week and all near the top of the market in forecast ROIC.
Who Moved – Only 9 names managed to move this week on higher than normal volumes. On the positive side, Bradken Limited (BKN, +48.4%), Monadelphous Group (MND, +13.2%) and Qube Holdings (QUB, +6.3%) all up, while Asaleo Group (AHY, -9.3%) and Pact Group Holdings (PGH, -5.2%) the only names down on volume.
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