Three things that got the team talking this week - Firetrail Investments

Weekly insights from the Trail

Three things that got the team talking this week

February 10, 2023February 17th, 2023

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1. Results (w)rap…

The BP result caught our attention this week. As well as upgrading their long term energy prices following the impacts of the Ukraine war, they also signalled a more balanced focus on investment between transition energy, and oil and gas. The company said “we are growing our investment into our transition and, at the same time, growing investment into today’s energy system….It’s what governments and customers are asking of companies like us.”

Source: Bloomberg

2. Job juice…

Jobs has been a hot topic through reporting season. It’s interesting to consider that, according to Goldmans, roughly 15% of companies in the S&P 500 have seen headcount increases of 40% or more since the start of the pandemic, and only one-fifth of them have announced layoffs so far. Closer to home, Boral announced in their result that voluntary turnover remains high, at 19%. Up from 17% at 30 June 2022, reflecting the continued tight job market.

Source: Bloomberg

3. Super bowled…

The global economy may be slowing, but no one has told Super Bowl advertisers. Fox Corp.’s average ad price for the event on Monday is over $6.5 million, in line with NBC from last year. But with multiple 30-second spots going for a record $7 million, the average may settle closer to $6.8 million, according to Bloomberg. Sold-out ad inventory, surging sports bets and expectations for strong ratings are all helping support the ad prices. Over 58 million Americans are projected to bet on the game. Let’s go Eagles!

Source: Bloomberg

Disclaimer

This article is prepared by Firetrail Investments Pty Limited (‘Firetrail’) (ABN 98 622 377 913, AFSL 516821) as the investment manager of the Firetrail Australian High Conviction Fund (ARSN 624 136 045), the Firetrail Absolute Return Fund (ARSN 624 135 879), the Firetrail Australian Small Companies Fund (ARSN 638 792 113) and the Firetrail S3 Global Opportunities Fund (ARSN 653 717 625) (‘the Funds’). Pinnacle Fund Services Limited ('PFSL') (ABN 29 082 494 362, AFSL 238371) is the product issuer of the Fund. PFSL is not licensed to provide financial product advice. PFSL is a wholly-owned subsidiary of the Pinnacle Investment Management Group Limited (‘Pinnacle’) (ABN 22 100 325 184). The Product Disclosure Statement (‘PDS’) and Target Market Determination (‘TMD’) of the relevant Fund are available via the links below. Any potential investor should consider the PDS and TMD before deciding whether to acquire, or continue to hold units in, the Fund.

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