Marcus Today End Of Report
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- ASX 200 rises to 6 to 5989 after breaking 6000 earlier.
- High 6009 Low 5978
- Banks flat as Joyce flips on Royal Commission.
- TLS hit by NBN halt.
- MQG hit the magic $100.
- Miners tread water.
- AUD slips to 76.04c on political woes.
- Bitcoin rises to US$9623. Are we there yet?
- US futures down 29.
- Asian markets in the dog house again. China CSI 300 falls another 1.00% and Japan down 0.18%.
FUTURES AND HIGHS AND LOWS
- MARCUS CALL – Avoiding the yield trap, QLD politics and the threat of a Royal Commission; and has the yet-to-be launch of Amazon already been factored into Australian retailers’ share prices?
- STOCK OF THE DAY – Bingo Industries (BIN).
- TRADING PORTFOLIO - No new trades today but Henry is looking at WEB.
- SMALL STOCK PORTFOLIO – Underpinned by the EV narrative, Henry talks about cobalt. Click here to read his latest blog.
- INSIDERS – Another member selling CCL. Thanks 'Fred'.
- 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
- DOW +5.05% upgrades following positive review of SPO acquisition.
- WEB -2.43% selling continues.
- ZEL -8.55% on low volume.
- BTT +4.53% global fund managers in the spotlight.
- APT -5.93% heat coming out after recent run.
- BIG -8.79% profit taking after update.
- LYC +4.88% heading in the right direction.
- PLS +3.59% lithium back in fashion.
- KDR +6.47% back in favour ahead of Tesla test.
- EUC -6.12% drilling report disappoints.
- CSL +0.54% drawing buyers again.
- AOG -0.76% reports of class action.
- BSL +0.14% new CFO appointed.
- MQG +0.87% breaks $100.
- TWE +0.63% helped by Chinese tarriff reductions.
- TLS -0.57% under pressure after NBN statement.
- RCG +12.66% big hitter takes an 11% stake.
- ANG +8.00% drawing strength from Waislitz recommendation.
- KGN +3.41% substantial shareholder.
- MYQ +27.78% binding term sheet signed with Ravi Krishnan an Indian sports identity.
- Speculative stock of the day: Quantum Resources (QUR) +100.00% following a MOU signed to fast track lithium development with FAR Resources.
- Biggest risers – DOW, BTT, AJM, WOR, LYC, VOC and PLS.
- Biggest fallers – BIG, PME, APT, ASB, BPT and SLC.
BEST AND WORST
- Downer EDI (DOW) +5.05% Company update this morning with the SPO acquisition review being largely positive. Underlying earnings have been consistent and broadly in line with the company’s business case. Cost synergies are expected to be around $25m and the MD is pleased with the integration.
- RCG Corp (RCG) +12.66% A substantial shareholding has fired this company up this morning with Brett Blundy acquiring around 11.82% of the company at 95c. The vendors were RCG directors all of whom were vendors of the Accent business acquired in 2015. Blundy has a great track record and where there is smoke there is fire.
- BIG Un (BIG) –8.79% US update with the company onboarding over 800 customers with a further 600 due by the end of the quarter. In addition to the 800 signed agreements achieved in Q1, and the expected 1,400 signed agreements in Q2, the company expects to deliver a further 4,600 signed agreements by 30 June 2017 resulting in 6,800 signed agreements for FY17/18. At a conversion rate of 50% and an ARPU of $4,500 this would represent US$15.3m in sales revenue. The Company plans to expand US sales seats to 100 by the end of Q3 and currently has 29 sales people on the ground.
- NBN is immediately halting the rollout of super-fast broadband delivered over pay television cables due to mounting issues with service dropouts. Telstra, in response to NBN's announcement, said it would be looking at its full-year financial guidance. TLS' FY18 guidance included an assumption that the NBN rollout would be broadly in accordance with the NBN Corporate Plan 2017.
- Bingo Industries (BIN) says the waste management company will now turn its sights to Queensland and other states beyond NSW and Victoria in its acquisition strategy after spending a combined $141m to help double its future capacity. BIN is raising $120m with a non-renounceable entitlement offer at 190c.
- Nothing today.
- The cryptocurrency frenzy continues. FOMO is strong with this one.
Is China cooling?
- A survey by the China Economic Panel showed expectations for the next 12 months dropped to 7.6 this month from 17.3 in October. The construction sector scored much worse than in the previous month, according to the statement.
- Sentiment among sales managers eased, according to a survey by London-based World Economics Ltd., as the reading fell to 51.5, the lowest in 13 months.
- The S&P Global Platts China Steel Sentiment Index edged down to 31.93 this month from 33.61 in October. The gauge is based on a survey between 75 and 90 of China-based market participants including traders and steel mills.
- Manufacturing was little changed from last month, according to the China Satellite Manufacturing Index, which remained unchanged at 51.08. The gauge published by San Francisco-based SpaceKnow Inc. tracks commercial satellite imagery to gauge activity levels across thousands of industrial sites.
- Judging by the recent falls in the equity market, things may have peaked as the party conference effect unwinds.
EUROPE AND US MORNING HEADLINES
- Time Inc will be sold to rival media group Meredith in a deal valued at US$2.8bn and backed by the Koch brothers.
- More on US tax reform this week may help Dow break more records.
- Troubles in Ireland upsetting the UK Brexit negotiations.
- UK retail failed to buck the gloom despite Black Friday. High street footfall was down 4.2% on last year. Including retail parks and shopping centres, 3.6% fewer shoppers bothered to seek out a bargain on Friday. The figures, compiled by Springboard, were significantly worse than the expected decline of just 0.6%.
- OPEC meeting this week. Should be interesting.
ADVANCED EDUCATION COURSES - Click on the links below to book current events. These are close to selling out as well. The demand for stock market education is healthy. We are in the middle of adding numbers to the Melbourne events and launching our beginners course in Melbourne and Sydney. We are also adding a Perth Advanced course. Just have to lock in dates with the venue hire people.
Friday February 23rd 2018 - MELBOURNE (SOLD OUT) - will add numbers soon
Friday March 2nd 2018 - MELBOURNE (SOLD OUT) - will add numbers soon
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
The 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.
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.
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