Marcus Today End Of Day Report
VIEW MORE ARTICLES BY HENRY JENNINGS
- ASX 200 finished 27 points higher to 6111 as euphoria fades a little.
- High 6031 Low 5994. Modest volumes.
- Banks shine on US moves.
- BHP follows iron ore higher.
- SEK disappoints.
- North Korean missile ignored.
- AUD slips to 75.85c
- Bitcoin races above $10,000 for first time.
- US futures down -3.
- Asian markets easier as Chinese sell off continues. CSI 300 down 0.72%. HK down 0.28% but Japan up 0.67%.
FUTURES AND HIGHS AND LOWS
- MARCUS CALL – We’re in good hands with Jerome. Banks – Royal commission threatens banks on seasonal lows. Chinese tariffs. Directors selling. Quick access link here
- TRADING PORTFOLIO - Three stop losses raised. One new trade.
- SMALL STOCK PORTFOLIO – Henry added ISD yesterday amid a 4% rally. He now sets his sights on PFP. Click here to read his latest blog.
- INSIDERS – Henry discusses BKL as a BUY (thanks Shadowfax). Click here for access.
- 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
- KDR +11.49% on positive drill results.
- LYC -4.65% ahead of consolidation.
- GXY +8.64% offtake agreements in place.
- PLS +5.08% lithium is back.
- DMP -0.15% IT court case adjourned until next year.
- AGI -7.83% AGM comments and outlook.
- CKF -4.97% market update disappointing.
- BHP +0.95% drawing strength from iron ore price.
- ISD +5.29% broker coverage.
- CSL -0.84% slips after recent strength.
- TLS -0.29% pregnant with news on NBN impact.
- CIM +2.48% continues to power ahead.
- APT -2.31% profit taking.
- IDX +22.75% bid from CAJ +1.64%.
- BIN +9.58% after successful insto offer.
- SGH -23.08% recapitalisation plan.100:1 consolidation.
- TCL -0.71% financial close of Hill refinancing.
- NCZ +10.49% positive feasibility study.
- 4WD - unchanged- surrenders in AMA -1.02% bid.
- NOX +8.33% proof of concept in animal strokes.
- APX - capital raise and two acquisitions.
- ALQ -3.37% ex dividend and negative AGM guidance weighing.
- BIG +20.94% company replies to recent volatility.
- SEK -3.61% disappointing AGM and guidance.
- Speculative stock of the day: Quantum Resources (QUR) +25.00%. MOU has been signed to fast track lithium development.
- Biggest risers – KDR, BIN, GXY, CEN, CLQ and PLS.
- Biggest fallers – AGI, LYC, CKF, PPH, SEK and ALQ.
BEST AND WORST
- Kidman Resources (KDR) +11.49% Another positive announcement at Earl Grey with consistent high-grade intercepts for a mineral upgrade. The company says there is significant funding flexibility on the back of resource upgrades.
- Capitol Health (CAJ) +1.64% A bid for Integral Diagnostics with a 6.9 CAJ for each IDX (+22.75%) plus 36c in cash which equates to 246c a share. Four big institutional holders have backed the bid with acceptances of their 19.55% stakes. The merger will create a leading Australian diagnostic imaging service with high quality radiologist business.
- Praemium (PPS) –1.65% Signed its first portfolio administration client in WA. Merchant Group has signed with PPS to provide admin for personal and SMSF investments.
- Seek (SEK) -3.61% expects EBITDA to lift around $48min fiscal 2018 compared to prior forecasts of an approximate $36.2m lift. Revenue growth is still expected to come in at 20%-25% and given the flat profits due to heavy reinvestment in the business. It lifted full year EBITDA (operating income) guidance from around 10% to 13%.
ADVANCED EDUCATION COURSES
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.
- Urging Australia to begin increasing official interest rates, even if inflation remains weak, to cool the housing market and prevent a blowout in risky debt levels.
- Indicates there may be a case for higher interest rates even if inflation stays weak, as many economists expect.
- It warned that those restraints need to be maintained, not least because Australia is vulnerable to "too big to fail risks, due to its highly concentrated banking sector".
- The Reserve Bank of New Zealand said it would ease restrictions on home loans given the recent cooling in the housing market, which is likely to be dampened further by new government policies. In its half-yearly Financial Stability Report, the central bank said it would undertake a "modest easing" of loan-to-value ratio (LVR) restrictions from Jan. 1, 2018.
- The record run continues. And it’s all about the BATs. Baidu, Alibaba and Tencent.
- The Hong Kong dollar’s one-month borrowing cost rose above 1% for the first time since the global financial crisis.
- As Chinese equity markets continue to pullback perhaps all the money is heading into digital currencies.
- Bitcoin now worth more than GE, Disney and McDonalds. Really. Now worth US$160bn. Up 933% this year.
EUROPE AND US MORNING HEADLINES
- Looks like the decree nisi cost has been agreed between the UK and the EU and it’s a big one. GBP40bn. No one will be happy with this outcome. So much for the money flowing to the NHS. Expect fall out.
- Uber’s adjusted losses widened to US$743m during the third quarter of this year, up 14% from the previous quarter, according to new documents sent to shareholders.
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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