OIL down = +ve for karoon, page-5

Swan, its actually a very simple buy at 1.40... rest of the ASX is not.

US raised interest rates, which effectively means australia will either pause or go with it.

A stronger USD(caused by higher rates... Europe still needs to stay low, as well as UK) means that commodities will remain depressed. So Commods down, ASX upside will be limited. high yields perhaps leads to rotation into less risky higher yielding bonds. Also higher US rates, means higher AU rates = risk to AU bank loan books given australia has the most expensive property vs income in the world.

Effectively, buying the broader asx here is extremely risky given the above.

Hence why I still like our little karoon, trading below cash value, they have given up the cash intensive rig, they are in the hunt for Bauna. Lots of catalysts for upside here to atleast $2 and more if they can do something smart.

We are now into stock pickers world....... karoon could be one.

OH, i also like that alot of funds will sell karoon into financial year end to net out their gains (almost everything else is up YoY). Very good time to accumulate over the next two weeks.

PB