What has been striking is the contrasting performance in the consumer facing stocks.You know, retailers and the like.
On the one hand you have groups of retailers ceaselessly complaining that the world is falling in around them - the likes of David Jones, Myers and Harvey Normans come to mind. Their complaints are the same: competition from offshore online sales that don't charge GST, uncertainty about jobs translating to lower spending, and a high Australian dollar, which means imported goods are more competitive.
But on the other hand, you have companies that are shooting the lights out. Companies like debt collector Credit Corp, automotive retailer Super Cheap, furniture retailer and manufacturer, Fantastic, as well as travel booking websites Webjet and Wotif.com.
From all this it can be deduced that the economy is not the issue, but rather the business models of all these companies.
Another point that John Murray, a broker from Lonsec, makes is that even if some companies deliver results that are worse than expected, their shares are still rallying:
"There are lots of short positions out there, and people are using bad news as an opportunity to buy the shares back."
To "short" a stock means that you sell it without owning it, with the intention to "buy it back" if its price heads down, thus locking in a profit.
Lastly, and not least importantly, the companies that Radar has tipped have been producing very good results.
We will keep our subscribers updated with all the pertinent and juicy news as it comes through.