Marcus Today End Of Day Report
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- ASX 200 races ahead up 38 points to 5942 as confidence returns.
- High 5950 Low 5890. US Holiday tonight. Volume ok.
- Results continue to be focus.
- Banks rally hard with resources lagging.
- CSL +1.61% still powering ahead
- AUD stronger at 79.73c
- Bitcoin rallies hard to US$10,580.
- AUD Bullion around $1348
- US futures up 96 points.
- Asian markets better with Japan up 1.84%. China closed.
- MARCUS CALL – Marcus is having a Colonoscopy and Gastroscopy today. Routine stuff, every three years. He’s left us with a quick view on the market from Saturday and a warning to men about bowel cancer (apologies but if you are over 50 and haven't had a colonoscopy - this could save your life).
- SMALL STOCK PORTFOLIO – We have recently added AGY and topped up our holding in MLX.
- INSIDERS – The leaderboard. We publish this every Saturday in a working spreadsheet, but we’ve decided to run it again in case you missed it.
- TRADING PORTFOLIO – No new trades. We were stopped out of IVC on the open.
- INSIDERS 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:
Advancers and Decliners
- CDD +11.74% results cheer.
- MSB +9.20% short squeeze.
- SWM +4.08% recovering on Olympics.
- VOC +2.87% results tomorrow.
- IVC -7.50% profit downgrade.
- DMP +3.06% buyers return.
- WPL -6.85% capital raising.
- MPL -1.90% broker downgrades.
- GSW -55.14% resumes trading.
- EUR -13.04% presentation.
- YOJ +6.67% picks up GSW buyers.
- NCZ +3.79% zinc price rises.
- NAB +0.82% staff cuts begin.
- SM1 +4.49% playing catch up to A2M.
- FXJ +4.92% recovering on Domain results.
- VRL +3.99% broker upgrades.
- Speculative stock of the day: Intiger Group (IAM) +28.00% following a shareholder update last week on its AI and Financial Planning business.
- Biggest risers – CIA, CDD, GWA, AVZ, IFN and MSB.
- Biggest fallers – IVC, WPL, VAH, SGR, VAH and BAL.
- Woodside Petroleum (WPL) - 6.85% The company returned from its trading halt today after raising $1.57bn from existing institutional shareholders at 2700c. The issue was take up by around 90% of eligible shareholders and the balance was placed at 2960c as part of the $2.5bn capital raising. Retail documents sent today.
- Nib Holdings (NHF) +2.64% 1H net profit A$70.9m, down 0.3% reflected one-off costs associated with its GU Health acquisition. Group revenue A$1.1bn, up 8.9%. Statutory operating profit A$88.1m, down 3.1%. New FY guidance of at least A$165m (underlying operating profit). The company said it funded around 24,000 public hospital admissions at a cost of $39m, up 5.9% on the pcp. CEO said the domestic Australian health insurance market is soft, household incomes aren’t growing and there is no shortage of competition in the market place. He said 2018 premium increase of 3.93% was its lowest in 15 years.
- Ooh!Media (OML) +4.52% FY net profit A$33.2 million, up 36% on year. Revenue A$380.3m, up 13.1%. Underlying EBITDA A$90.1m, up 22.5%. Final dividend of 15c. Road and Retail segments delivered around 70% of total revenues and strong double-digit growth through the continued digitization of panels. Lease profiles were extended in CY17 meaning that over 65% of its revenue base is expiring after 2020. Acquisitions in CY16 are now successfully integrated with revenue synergies expected this year. Guidance for CY18 EBITDA of A$94.0 - $99.0m. It’s ‘Out Of Home’ sector is expected to continue to grow over the calendar year.
- GWA (GWA) +11.40% 1H net profit A$27.7m, up 7%. Interim dividend of 8.5c. The company announced it will divest its Door and Access Systems business, set to take approximately six months. The sale proceeds will likely be injected into its Bathrooms and Kitchens business. In terms of macro outlook, CEO says residential construction to remain broadly steady with continued momentum in Victoria and NSW, partially offset by weakness is QLD and WA. The renovation and replacement segment, which accounts for over half of GWA’s revenue, is expected to remain stable for FY18.
- Brambles (BXB) +1.14% 1H net profit nearly triples to US$447.2m boosted by US tax benefit. Revenue A$2.7bn, up 9%. Underlying EPS 20.3c, up 9%. Interim dividend of 14.5c. The company expects FY18 sales revenue growth in mid-single digits. The sale of CHEP Recycled has been completed with the proceeds to be recognised in the 2H.
- Invocare (IVC) -7.50% FY18 net profit A$97.4m, up 37%. Sales revenue A$470.9m, up 1.8%. Operating EBITDA A$124.3m, up 7.8%. Declared dividend of 27.5c. The performance was driven by the Australian cemetery and crematoria business and a strong performance from New Zealand. CEO said its $200m ‘Protect and Grow’ plan is on track, with costs set to impact FY18 EPS and EBITDA due to temporary closures of locations for refurbishment.
- Seek Limited (SEK) +1.94% Seek 1H net profit A$102m, up 21%. Revenue A$620.3, up 26%. EBITDA A$221.2m, up 20%. The company says that its Asian business are progressing well thanks to better macro conditions. Australian segment revenue growth up 15%. International revenue growth of 10%. Revenue guidance confirmed in the range of 20 – 25%. EBITDA guidance upgraded to 14 – 15% growth and reported NPAT confirmed at the upper end of the previous range of A$225m – A$230m.
- Get Swift (GSW) -55.14% Returned after a lengthy trading halt due to ASX listing issues. The market has not been kind. Looks like less than half its announced contracts had progressed to a revenue generating stage.
- John McGrath, the CEO at McGrath (MEA) +4.88%, has appointed Kerry Stokes' former chief financial officer, Peter Lewis, as its new chairman.
- BIG Un (BIG) - Trading halt - pending more details of its financing arrangements. According to the company filings it had granted security over its assets to FC Capital, the small business lender that is advancing funding to facilitate the company's sales. The charge commenced on April 21, 2016 and is not set to end until April 2041.
Earnings season looking good so far according to Credit Suisse :28% of companies in the ASX 200 have had upgrades of more than 1% versus 23% with downgrades.
If the market wobbles then Stock Picking will be a lot more important this year. Find out how to do it on one of my one day courses costing $750 - click on the button below - we are adding new dates all the time as they sell out:
ALL ORDS SECTORSUMMARY
ALL ORDS TOP MOVERS
ALL ORDS BOTTOM MOVERS
ASX 200 SECTOR SUMMARY
ASX 200 TOP MOVERS
ASX 200 BOTTOM MOVERS
- Figures from ABS on our biggest visitor numbers.
China remains closed for Lunar New Year.
- As the war of words heats up, China has warned of retaliation if the US introduces tarriff controls on steel and aluminium. Not good for RIO and BSL unless exempt.
- Shipments to the U.S. rose 1.2%.
- Exports to the EU increased 20.3%.
- The Noble Group will report a net loss of US$1.73bn to US$1.93bn for the final quarter of last year, potentially bringing losses for 2017 to almost $5bn.
EUROPE AND US MORNING HEADLINES
- Presidents Day tonight in the US.
- Archer Daniels Midland and Syngenta, two giants of industrial agriculture, have settled lawsuits over the release of a new biotech corn strain that upended US grain exports to China.
- Fitch on Friday lifted its sovereign rating on Greece, saying that the country seems to be on course for general government debt sustainability, thanks to a growing economy, waning political risks and government budget surpluses that beat creditors’ target.
- In the UK, annual wage growth in the three months to December held flat at 2.5%, official figures are expected to reveal on later this week, failing to accelerate for now. It comes after inflation in January also held up at 3% in defiance of an expected fall making life tougher for families.
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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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