Jackson Aldridge discusses how inflation has been a major concern for investors in recent weeks. He then discusses how companies have been raising capital, with some looking for an opportunistic raise, some looking to shore up their balance sheets, and some looking to make acquisitions. He discusses Retail Food Group (RFG), Silex Systems (SLX) and SRG Global (SRG) which are raising equity.
He also noted that Star Entertainment Group recently raised money through an entitlement offer, with the aim of shoring up their balance sheet. Jackson says that commodity stocks and financial services companies are likely to perform well in an inflationary environment. He also suggests that gold miners may be a risky investment due to their high CapEx profiles and lack of cash flow.