Company Interview / Henry's picks amid the resources rotation

Key points:

Commodities, especially gold and uranium, have had a strong start to the year with upbeat price action Uranium stocks Boss Energy (ASX:BOE), Paladin Energy (ASX:PDN), and Lotus Resources (ASX:LOT) have large short positions Resource sector favoured for exposures such as copper, gold, uranium, and rare earths, with stocks like BHP (ASX:BHP) highlighted Australian tech sector, including WiseTech (ASX:WTC), Xero (ASX:XRO), and Technology One (ASX:TNE), experiencing significant pressure 4DMedical (ASX:4DX) has delivered significant gains, though recent broker actions raise questions

Henry Jennings from Marcus Today highlights steady GDP figures from both China and the US, each reporting growth around 5%. Jennings casts doubt on the reliability of Chinese numbers but points to strong trade export figures, suggesting China’s ability to skirt tariffs. He notes these twin economic tailwinds could be positive for commodities, which have started the year with notable strength, particularly in gold and uranium. Gold miners benefit from heightened geopolitical concerns, while uranium has rallied to $85 per pound, spurring renewed market attention and analyst upgrades across resource stocks.

Jennings points out significant short positions in uranium stocks such as Boss Energy (ASX:BOE), Paladin Energy (ASX:PDN), and Lotus Resources (ASX:LOT), suggesting that positive news in the sector could prompt a rapid short squeeze. He remains focused on resources, particularly copper, gold, uranium and rare earths, viewing these as favoured exposures given global strategic shifts towards critical metals self-sufficiency. Jennings also references BHP (ASX:BHP) for its copper and uranium exposure, calling the resource sector a compelling area, especially as the US considers reshoring supply chains and the world seeks to diversify away from US assets.

Turning to tech, Jennings describes a significant decline across the Australian sector, mentioning WiseTech Global (ASX:WTC), Xero (ASX:XRO), and Technology One (ASX:TNE) as key laggards. He also highlights the striking rise and recent developments at 4DMedical (ASX:4DX), noting profits for long-term holders but raising questions about recent broker activity and valuations.