Market Update & Important Indicators:
The Dow Jones Industrial Average climbed within striking distance of 22000, with the blue-chip index finishing 73 points higher at 21,964, or 0.3%. That advance put the index on track for a sixth straight session of gains and another closing high. Meanwhile, the S&P 500 rose 0.2%, and the Nasdaq Composite added 0.1%. Both were on track to end three-session losing streaks. U.S. stocks have posted records this year, buoyed by strong corporate earnings and signs of resurgent global growth. With more than half of S&P 500 companies having reported results for the second quarter, firms were on track to post their best sales growth in years. The U.S. gold price once again fell slightly overnight, shedding less than 0.1% to finish at 1,268.20 US$/oz.
Stocks in Europe gained ground, as trading in August kicked off with shares of BP climbing after the oil major's earnings report, and as data showed rising economic growth in the Eurozone. The Stoxx Europe 600 tacked on 0.6% to close at 380.26. Energy and industrial stocks led advancers, and the health care sector was the only laggard. The pan-European index on Monday slipped 0.1% to close at its lowest since April. The oil and gas sector leapt a collective 1%. Oil stocks remained higher as crude oil prices turned lower. Prices had earlier extended a rally driven by growing optimism that the oversupply in the global oil market is now easing. Oil investors were also monitoring Venezuela, a member of OPEC, after President Nicolás Maduro in a weekend referendum was given overwhelming power to redraft the country's constitution.
In Asia, improvement in a closely watched private gauge of manufacturing in China helped Asian shares gain. The reading from Caixan and IHS Markit rose for a second straight month in July and hit the highest level since March. In contrast, Monday's government reading slowed slightly. Chinese stocks were already higher ahead of the report, and the Shanghai Composite Index was last up 0.6% after four consecutive sessions of gains. In Hong Kong, the Hang Seng Index hit fresh two-year highs, rising 0.7%, moving closer to 2015's peak. Korean stocks were also strong with the Kospi rising 0.8%. Japan's Nikkei rose just 0.3% as Tokyo equities continued to be capped by the weaker dollar; it was recently around Y110.20.
Australian stocks maintained their recent rebound, with the S&P/ASX 200 rising for a fifth day in six on continued improvement in commodities prices. Finishing near session highs, the index rose 0.9% to 5772.40, led by energy companies and utilities as U.S. oil prices have moved back above $50 a barrel for the first time in two months. Only the IT sector was lower for the day. Early broad stock gains were added to in the afternoon following the central bank's latest statement, which included stepped-up warnings about the Aussie dollar's recent strength.
The London Metal Exchange's three-month copper contract closed 0.38% lower overnight to finish at $6,345/t. The other base metals finished mixed. Nickel prices rose 0.7% to 10,241/t as the Philippines’ new environmental and natural resource minister vowed to maintain the ban on open pit mining imposed earlier this year. Lead prices also rose, finishing 0.2% higher at 2,313/t. Aluminium prices fell 0.6% for the day to 1,884/t, whilst tin prices shed 0.7% to 20,660/t. Zinc prices also lost ground, dropping 0.6% to 2,768/t.
In this Issue:
Vault Intelligence (VLT) | June Quarterly | HOLD
Market Cap $22m | Current Price $0.032 | Valuation $0.035
VLT continues to develop its product suite and engage with potential clients. The latest quarter was a record for new contract signings, validating both the software and the opportunities. As we pointed out post the prior quarter, the SaaS business model is attractive but necessitates business development costs prior to the generation of recurring revenue. As a result, in our view, it will take until FY19 for recurring cash receipts to overtake cash costs and for the Company to turn a profit. A hold call remains appropriate at this time.
Recent Contacts & Presentations:
Gage Roads Brewing Co Ltd (GRB), Stavely Minerals Ltd (SVY), Orbital Corporation Ltd (OEC), 4Ds Memory Ltd (4DS), Kin Mining NL (KIN), Pharmaust Limited (PAA), Botanix Pharmaceuticals Ltd (BOT), Dimerix Ltd (DXB), Metro Mining Ltd (MMI), Paringa Resources Ltd (PNL), Independence Group NL (IGO), MZI Resources Ltd (MZI), Transerv Energy Ltd (TSV), Emmerson Resources Ltd (ERM), Antipa Minerals Ltd (AZY), Echo Resources Ltd (EAR), Sovereign Metals Ltd (SVM), Calidus Resources Ltd (CAI), Great Boulder Resources Ltd (GBR), Finders Resources Ltd (FND), Bionomics Ltd (BNO), Threat Protect Australia Ltd (TPS), Ramelius Resources Ltd (RMS)
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