Overnight the S&P 500 and Nasdaq fell 2.30% and 3% respectively. The vast majority of stocks were in the red but it was the semiconductor manufacturers that were hit the most. NVIDA Corp (NASDAQ:NVDA) declined by 7%. At home the ASX SPI is indicating a modest fall of 0.20% as we all have one eye on our Easter break.
- S&P 500 = -2.30%
- Nasdaq = -3.05%
- Aussie dollar = +0.3% at US63.64¢
- Iron Ore = -0.7% at $US98.05 a tonne
- Gold =+3.1% to $US3332.34 an ounce
Unexplained director movements
Personally, I don’t have a lot of experience with resignations. A few years back I became the treasurer of the Brunswick Bowls Club. I asked a friend who was the CFO of an ASX listed business if he had any advice. He only had one piece of advice for me, “when you look at the accounts for the first time and you don’t understand them, resign”.
Yesterday two directors of embattled former market darling, Mineral Resources Limited (ASX:MIN) resigned with immediate effect. Jacqueline McGill and Susie Corlett decided to call it a day. The share price fell 8.99% to $16.61. A staggering decline for a business which almost touched $80 a share back in May last year. No reason was provided for McGill and Corlett’s departure. McGill and Corlett were two of the three directors on the recently formed ethics and governance committee.
I am not insinuating Corlett or McGill didn’t understand the accounts or anything untoward is at foot, nor at the 100 year old Brunswick Bowls Club. Corlett is also the owner of the picturesque Rocky Hill Miniature Donkey Stud. An ASIC investigation is hanging over the embattled company, as well as a class action. When it comes to either being in the boardroom or a lush paddock, I know where I’d rather be. And given her experience it is fair to say she knows how to spot a donkey.
More thoughts on fashion duplication
Further to the Chinese influencers pulling back the curtain on the fashion industry, I’ve been thinking. What luxury goods would you not accept substitutes for? Goods where trust in the brand is everything?
I’m curious to see how companies such as L’Oreal SA (EPA:OR) and Estee Lauder Companies (NYSE:EL) have hold up. Are these businesses more resilient? The US listed Estee Lauder has been hit by tariff implications and is down 24% year to date, whereas the French listed L’Oreal SA remains buoyant, up 3.5%.
These are businesses with products built into daily routines making switching less likely. If switching to cheaper products were to happen, chances are you’d be switching to a brand owned by the parent company.
L’Oreal SA is never going to be a tear-away stock like an AI highflier but it is of the upmost quality. It has regional product development and testing to cater specifically to the needs of those consumers with excellent global distribution channels. Size provides it with a competitive advantage as it can sit back, watch its competitors grow and prove their products before acquiring them.
L’Oreal SA is listed on the Euronext Paris and is held in the Vanguard FTSE Europe Shares ETF (ASX:VEQ).
If you’d like to get in touch with me you can via the chat function in the corner, the Rask Community or head over to Rask Invest. Enjoy your long weekends everyone, especially those public holiday aficionados who were able to snag the Easter/ANZAC Day double up.
