Marcus Today End Of Day Report
VIEW MORE ARTICLES BY HENRY JENNINGS
- ASX 200 down 8 points to 6022 on bank ex-dividends.
- High 6028 Low 6011. Modest volume.
- ANZ and WBC account for 19 points.
- Miners firm, CSL slips.
- Energy stocks mixed.
- Canberra continues to take more bizarre turns.
- AUD steady at 76.59c.
- US futures up 42.
- Asian markets mixed with Japan down 0.50% and China CSI up 0.33% after a Singles day bonanza.
- ADVANCED EDUCATION COURSES - I have posted three dates for my Education Course "Stock Picking for the Active Investor" with Marcus Padley - You can book below - details in Newsletter - I will be running a beginner’s class as well but have yet to settle on dates - to book the advanced course click below. I will add dates and go interstate depending on demand:
Friday February 23rd 2018 - MELBOURNE (11 places left)
Friday March 2nd 2018 - MELBOURNE (11 places left)
Friday March 16th 2018 - SYDNEY (Only 5 places left)
- MARCUS CALL – Singles Day - a strong indicator of how retail is changing. RIO completes its buyback. And the banks – on track to make $30.5bn profit collectively.
- TRADING PORTFOLIO - Four stop losses raised.
- SMALL STOCK PORTFOLIO – We’re sitting pretty at the moment. But Henry talks about some very interesting opportunities emerging in the medical tech space.
- INSIDERS – A note on Insiders. We have consolidated Insiders content with Small Stocks. Head to the Small Stocks drop down menu to access Henry’s blog and the Insiders box. And for archived articles, go to our Education drop down menu.
- CONNECT WITH US - We invite you to send us your own stock ideas. We also have the facility for you to email us any questions. Click on the "Ask Marcus Today" button in the newsletter or below - Ask us anything:
Movers and Shakers
- REA +0.32% broker ups price target.
- TRS +9.14% short squeeze and broker upgrades.
- SYR +10.08% UBS Investor conference.
- THC +26.76% Investor presentation.
- MSB +10.93% ACR presentation on Phase 2 trials.
- APT +5.69% rally continues.
- XRO -5.02% profit taking.
- DCC -14.58% update on Power Ledger ICO.
- NEC +1.00% positive AGM comments.
- AUZ -3.70% AGM presentation.
- CAN +10.59% cannabis stocks rally.
- WHA +9.35% Singles Day success.
- MEA +3.85% speculation on privatisation from John McGrath.
- AZJ UNCH consortium involvement to buy Wiggins Island Coal Terminal.
- PAN +6.38% Investor presentation.
- MDC +7.94% Cannabis stocks rallying.
- MLX +0.87% firmer metal prices.
- CXO +10.77% rally continues.
- Speculative stock of the day: Great Boulder (GBR) +204.35% after announcing significant Copper-Nickell -Cobalt at Mt Venn. Initial results from first nine holes show significant mineralisation near surface.
- Biggest risers –SYR, ELD, MSB, NHC, APT and A2M
- Biggest fallers – MLD, IRE, XRO, NWH, AAC and KDR.
FUTURES AND HIGHS AND LOWS
- Rio Tinto (RIO) +1.10% Completed its $750m off market buyback at 6367c, a 14% discount to the market price. The company has bought back 11.8m, around 2.78% of the outstanding shares. The company has a near US$2bn buyback on market that it will buy between 27th December 2017 and 31st December 31st 2018.
- A2 Milk (A2M) +3.13% Released an investor presentation this morning. Once again, another very positive presentation. Revenue up 56% to NZ$549.5m. EBITDA margin increased to 26% with sales to China around NZ$90m. Infant formula makes up 76% of revenue. The share price is up strongly in early NZ trade. The outlook for FY18 remains strong with the US and UK a focus for marketing and distribution footprints. China remains the key coupled with a launch of fresh milk into Singapore.
- Aurizon (AZJ) UNCH Has confirmed reports in the media that it is in "preliminary discussions with a number of parties" to buy the Wiggins Island Coal Export Terminal. As part of a consortium deal, Aurizon would get the terminal and other members the associated mines.
- Commonwealth Bank (CBA) +0.83% There will be much talk in the coming months on who will replace Ian Narev at CBA next year. It seems that one front runner, Ross McEwan from UK’s RBS has ruled himself out for the time being at any rate. Narev is due to step down by July 2018. Others in the running include Craig Drummond at MPL and CBA board member, Rob Whitfield. Mike Baird and MacBank’s Greg Ward are also in the mix.
- BUB Australia (BUB) -8.33% Next Step Global has sold down its holding from 34.87m shares to 28.03m or 12.39%.
- Maca (MLD) –22.17% Trading update this morning as earnings have been adversely affected by under performance in the MACA Interquip and Victorian Civil and Infrastructure divisions with costs recognised. EBITDA will be in the range of $39m-$41m. FY19 looking good on further contract wins. Revenue guidance of $560m for FY18 remains.
- Elders (ELD) +7.90% Good result. Net profit up $64.4m to $116m. EBIT of $70.4m up $14.3m. Return on capital 26.8% Fully franked dividend of 7.5c plus a special div of 7.5c.
- IRESS (IRE) -4.95% The financial services software services software firm said it expects full-year 2017 revenue will be between $435m and $440m. It also expects softer segment profit for FY of between $123m and $128m on a constant currency basis.
- Amazon has said it will launch in Australia with both a full retail and marketplace offering it has confirmed. Very, very, very soon apparently.
- Suncorp (SUN) -0.64% Lindsay Tanner appointed to the board.
BEST AND WORST
- In a speech in Sydney Dr Guy Debelle (deputy Gov) said non-mining investment was around 17% higher than in the first three months of 2008. Debelle said growth in the services sectors of health, information, media and telecommunications would kick the economy into its final stage of recovery.
- World is going mad. Razer, a new HK IPO raised US$530m. Razer produces a suite of products for gaming enthusiasts, from computer mice to performance laptops. Up around 41% from IPO price. The IPO was oversubscribed 300 times over. Really. For gamers by gamers apparently.
- Bitcoin is now down 29% from its recent high. Bitcoin dropped to as low as $5,605 on Monday, from a record high $7,882 reached on Wednesday.
- Brookfield Asset Management has bid more than US$14 billion to acquire the stake it doesn’t already own in mall owner, GGP Inc. The Canadian investment firm made an offer of about US$23 per share, a premium of around 21%.
- Insurer, AIA gained as much as 6.1% on plans to allow international players into China.
- A Jardine Matheson company has paid out US$616.6m for a 5.53% stake in Vietnam’s largest dairy group, Vinamilk.
EUROPE AND US MORNING HEADLINES
- UK PM, Theresa May is under pressure again as a group of MPs are pushing for a no confidence vote.
- UK retail is bracing for a 'Christmas of constraint'. In October, the number of people hitting the high streets fell by 2% compared to the year before. This marks the steepest year-on-year drop since the EU referendum when footfall slumped by 2.3%, according to data from Springboard. The Visa Consumer Spending index has revealed that the October spending slide of 2% is the quickest seen since Sept 2013.
Henry Jennings has been involved in financial markets for over 35 years as both a trader and a broker in London and Sydney.
Starting his career in London trading derivatives and moving to Australia in 1989, Henry eventually settled at Macquarie Group, rising to become a Divisional Director responsible for Equity Trading in Australia. For the last decade, Henry has been involved in private client broking and now writes exclusively for the renowned financial newsletter Marcus Today. Henry regularly appears on ABC TV and Sky Business as a market analyst, commentator and strategist and has presented at various conferences most recently for the AIA on the Gold Coast.
To gain further insights from Henry Jennings, Marcus Padley and the Marcus Today team of analysts, click here to register for a free trial of the Marcus Today daily newsletter.