Welcome to the 27th edition of the BKI Quarterly Report, prepared by Contact Asset Management (Contact).
The August 2020 Reporting Season was as tempestuous as they come from an earnings perspective. Unexpectedly, it was the best August in eleven years from a share market performance perspective. Economic conditions changed drastically in the six months since companies last presented their results. In February, COVID-19 was a potential but oft dismissed threat. With the August results, COVID-19 was omnipresent.
This update provides several insights from the Contact Asset Management team as we reflect on both the year gone and the challenges and opportunities in the periods ahead. We consider companies across several sectors including large, mid and small capitalisation stocks. It is a challenging period for Australian investors – the outlook is uncertain, income is harder to come by and many valuations appear stretched. However, there will be silver linings from the challenges of 2020. As long-term investors, we remain convinced that in the end optimism rules and opportunities never cease.

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