In today’s briefing:
- Treasury Wine Estates (TWE AU): Passive Selling Adds to Tariff Woes
- Abacus Storage King (ASK AU) Gets an NBIO from Ki Corp & PSA
- Fenix Resources (FEX AU): Highlights From The Ignite Investment Summit
Treasury Wine Estates (TWE AU): Passive Selling Adds to Tariff Woes
- Given its portfolio mix, Treasury Wine Estates (TWE AU) does not expect a material impact on its business from the blanket 10% tariff on all goods imported from Australia/New Zealand.
- However, there is a high probability that Treasury Wine Estates (TWE AU) will be deleted from a global index in May and that will lead to large selling from passives.
- There has been an increase in short interest and an increase in other positioning. Trading will be volatile but there could be a downward bias over the next few weeks.
Abacus Storage King (ASK AU) Gets an NBIO from Ki Corp & PSA
- Abacus Storage King (ASK AU) was demerged from Abacus Property Group in 2023 and the stock has traded in a range since listing.
- Now, Ki Corp and Public Storage (PSA US) have made a conditional and non-binding proposal to take Abacus Storage King (ASK AU) private at A$1.47/share.
- The offer is a 27% premium to the last close of the stock and is higher than the price that the stock has traded at since listing.
Fenix Resources (FEX AU): Highlights From The Ignite Investment Summit
- Executive Chairman John Welborn presented the investment case for Fenix Resources (FEX AU) at the Ignite Investment Summit in Hong Kong on March 26th/27th.
- The company’s imminent production of 4 million tons of iron ore (~$100 USD/ton), is projected to generate AUD 200 million in operating cash flow, matching its current market capitalization.
- The company briefly touched on its M&A opportunity with Coziron Resources (CZR AU), which is expected to add 40 million tons of reserves and further increase production.
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