Coles to Fetch Greencross for $4b. Canaccord's 90% Upside for PC2. XRO CEO $7.6m Tax Sell.
Paper Mandate Market & Portfolio Commentary | 13 July 2026
Fund Status:
Bal Start: $1,157,078
Bought 360, ZIP
Sold: None
Bal End: $1,142,963
Cash: $129,756
Overnight Markets
Most US indices ended last Friday up, with small caps (Russell 2000) down -0.49% while large (S&P500) caps were up +0.42%. Materials were the leading sector (+1.12%) with Healthcare the only sector down (-0.81%). The status of the Strait of Hormuz remains in flux as strikes from US and Iran continue, sending oil prices up yet still near the pre-conflict level. Interestingly, the Trump Administration is investigating a retirement system inspired by the Australian super system. Lastly, SK Hynix IPO’d to much fanfare, rallying 14% above the offer price.
Australian Market
The ASX200 was essentially flat (+0.03%) today as the market capitulated to a tech sector sell-off (-2.48%). There were some positive movements in Financial and Healthcare names. A notable movement was the fall in Xero, after the CEO sold all of their common shares for “tax purposes”. Apparently this has happened a couple of times. Combined, the CEO’s selling proceeds equate to roughly $7.6m. Either a very good or very bad “tax purpose” would require $7.6m. Curious to know which it is. The index was saved from rallies in the big banks and the large cap end of town.
In other news, Coles is expected to announce an acquisition of pet care and veterinary company Greencross. A deal worth $4bn. By no coincidence, Macquarie upgraded its target price of Coles by 4% to $25. The cross selling advantages of acquisition are value accretive. Also, Canaccord initiated on PC Gold (PC2) as a speculative buy. Their target price sits at $2.15, much higher than the current $1.13 share price.
Portfolio Commentary
Our portfolio faced a challenging session, finishing down -1.21% due to the correction in technology. The top detractors were Xero (-4.31%), Zip (-2.88%) and Bravura (-5.51%). The latter is likely profit taking following last Friday’s breakout. On the brightside, SKS (+2.52%), Shape (+1.58%) and JB Hifi (+1.09%) came in to protect the portfolio. We took advantage of the sell-off to add to some high conviction stocks, namely 360 and ZIP. Adding 1% each.
Investment Activity
Disclaimer: This is a paper portfolio. Content is for educational purposes only and does not constitute financial advice. Always do your own research.