Marcus Today End Of Day Report
VIEW MORE ARTICLES BY HENRY JENNINGS
- ASX 200 rallies 14 points as US tax reform helps equities.
- High 5979 Low 5949. Tight range. Below average volume.
- Weekly performance ASX 200 down 1.2%.
- Banks and Healthcare lead.
- Miners still under pressure.
- WES AGM fails to enthuse. UK a focus.
- AUD falls to 75.67c on disappointing wage data.
- Bitcoin US$7919 rallying hard.
- US futures down 17.
- ADVANCED EDUCATION COURSES - You can now book on the links below for my 2018 Education Courses - The advanced one is "Stock Picking for the Active Investor" with Marcus Padley - It is a one day course. Our first advanced/intermediate stock picking events have only been offered to Members so far and we have sold out of both Melbourne events and one Sydney event. I have added a Gold Coast and a Brisbane event below. We are also going to be offering a BEGINNERS EDUCATION COURSE – An Introduction to financial concepts, your investment options, where you are with Super, and an introduction to the stock market. This will be more cheaply priced and will be conducted over a morning rather than a day and will make a great Christmas present for you or your children. It will improve their financial literacy in a way I wish mine had been improved a lot earlier than it was. I will publish more details when we arrange dates and venues. At the moment we are only advertising courses to Members only but that will change. Click on the dates to book - More Melbourne, Sydney, Perth, Adelaide (anyone interested in Newcastle) events will be arranged depending on demand - email any comments to email@example.com
Friday February 23rd 2018 - MELBOURNE (SOLD OUT)
Friday March 2nd 2018 - MELBOURNE (SOLD OUT)
Friday March 16th 2018 - SYDNEY (SOLD OUT)
NEW EVENT - Saturday March 17th – SYDNEY
NEW EVENT - Wednesday April 18th 2018 - GOLD COAST
NEW EVENT - Friday 20th April 2018 – BRISBANE
- MARCUS CALL – Thanksgiving coming up. A2M AGM a risk. Brokers move in unmysterious ways.
- STOCK OF THE DAY – Xero (XRO) – CEO sells millions of shares.
- SMALL STOCK PORTFOLIO – Henry is away today. MSB retraced some of its losses today. It’s up 7.3%. Click here to read the latest blog.
- US STOCK BOX - We have put this in the "TOOLS" Tab. Covers the S&P 500 stocks.
- INSIDERS – Two new Insiders tips – THC and Nasdaq listed, INCR.
- 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
- STO +1.21% on bid speculation.
- Cannabis stocks have huge day.
- CAN +5.31% THC +30.77%
- MSB +7.72% broker BUY recommendation.
- TAH+4.84% TTS +2.33% on ACT authorisation.
- BIG +6.26% rally continues.
- VAH +15.22% on privatisation expectations and fundie comments.
- PPH +3.63% rally resumes.
- CGC -3.39% agri stocks weaken on weather worries.
- AAC -3.21% downgrade weighs.
- DHG -0.27% slight celebration on decree nisi.
- FXJ -2.74% separation anxieties.
- PGH -1.86% after insto entitlement update at 528c
- Speculative stock of the day: ZYB +37.5% after a ASX query and the company response on opportunities in the cyber sector it is pursuing.
- Biggest risers – VAH, MSB, IFT, BIG, NHC and PPH.
- Biggest fallers – IRI, AAC, SIQ, VRL, CEN and PGH.
FUTURES AND HIGHS AND LOWS
- Tabcorp Holdings (TAH) +4.84% The $11bn merger with Tatts Group (TTS) +2.33% has been approved by the Australian Competition Tribunal. The merger was initially approved by the tribunal in June but the ACCC appealed the decision to the Federal Court only to go back to the Tribunal to be given the final green light. A condition of the merger is for Tabcorp to divest the Queensland Odyssey Gaming Services business. The tribunal has said they considered the detriments outlines by the Anti-trust regulator unlikely to arise and the merger to bring about substantial public benefit.
- Kogan (KGN) +12.60% in a trading update announced that from July to October revenue grew of 36.2%, gross margins improved 18.4% and EBITDA grew 58.3% against the prior year’s pro-forma EBITDA.
- Pact Group Holdings (PGH) –1.86% Completed the institutional component of its 1 for 9 entitlement offer raising $151m at 528 cents per share. The funds will be used in acquisitions in Asia and for financial flexibility.
- Afterpay Touch (APT) –0.73% Established a NZ$20m revolving cash facility for an 18 month period with ASB Bank. It has also gained approval to increase its NAB warehouse funding facility from $200m to $350m with a new term of 24 months after the bank reviewed its financial position.
- Pro Medicus (PME) +3.76% announced an $18m, 7-year contract with Yale New Haven Health, an affiliate of Yale University in the US. The contract is for the use of PME’s Visage 7 technology in Yale’s radiology departments.
- Noni B (NBL) +3.76% chairman Richard Facioni told shareholders at the annual meeting today it will continue to pay regular dividends now that the group has returned to profitability, while at the same time announcing up to a $5m on-market share buyback.
BEST AND WORST
- Nothing significant today
- Toyota will sell electric cars in China from 2020. Selling electric vehicles in China from 2020 will mark the return of Toyota into the battery-powered vehicles market after halting production of the RAV4 EV in 2014.
- Moody’s has upgraded India’s sovereign rating on expectations of continued progress for economic and institutional reforms.
- Not all dairy companies are created equally it seems. China Huishan Dairy which fell 85% in March this year, is preparing for provisional liquidation after it found net liabilities in China may have totalled Rmb10.5bn (US$1.6bn) at that time.
- China has flooded the market with a US$47bn cash injection sending Chinese bonds down off three-year highs.
EUROPE AND US MORNING HEADLINES
- Comcast Corp and Verizon Communications have both expressed interest in acquiring a significant part of Murdoch’s Twenty-First Century Fox Inc’s assets. Meanwhile the U.S. Justice Department is preparing a lawsuit to block AT&T Inc, the largest Pay-TV provider in the United States from buying Time Warner Inc for US$85.4 billion.
- Fox assets that buyers have expressed interest in have included the movie and TV production studios, cable networks FX and National Geographic, and international assets such as the Star network in India, and the European pay TV provider Sky Plc. These units have also been the subject of recent talks between Fox and Walt Disney
- Bitcoin hits record. One of the reasons may be the cancellation of SegWit2X earlier this week. Whatever that is. Ripple apparently is the one.
- Meanwhile in Norway, the state owned sovereign wealth fund, Norges is talking about getting out of oil completely in an attempt to cut its exposure to what it thinks may be a permanent decline in commodity prices. It is also talking about getting out of coal assets too. Fair to say Norges has a fair exposure to global oil and gas companies. Now it is a seller of $44bn of oil assets. Perhaps.
- In the UK Theresa May, who may not make it to Xmas, has had to back down on a fixed Brexit date after a party revolt. Now pencilling in the 12th of never for Brexit.
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.