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Marcus Today End Of Day Report
BY HENRY JENNINGS - MARCUS TODAY COMMENTATOR - 20/02/2018
VIEW MORE ARTICLES BY HENRY JENNINGS

Today’s Headlines

  • ASX 200 finishes -1 to 5941 in quiet trade
  • High 5942 Low 5913. Tight range. US closed last night.
  • Winners and losers from results.
  • ALU a standout; SUL suffers.
  • BHP results after hours.
  • AUD stronger at 79.25c
  • Bitcoin rallies hard to US$11,449.
  • AUD Bullion around $1344.
  • US futures down -71.
  • Asian markets ease with Japan down -0.15%. China closed.

MT Stuff:

  • MARCUS CALL – Woodside as a quality buying opportunity, and the essential ingredients of ‘smart’ money.
  • SMALL STOCK PORTFOLIO – Henry reviews slow and steady performer, MOC.
  • INSIDERS – We look at the latest results from Insider tip, OGX.
  • 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:

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FUTURES AND HIGHS AND LOWS

Advancers and Decliners

  • ALU +26.7% great results last night.
  • GWA +9.90% broker upgrades following results.
  • LYC +2.50% rally continues.
  • SWM +18.63% strong earnings on cost cutting.
  • APT +4.83% upcoming results.
  • VRL +5.60% broker upgrades.
  • INA +1.53% strong results expect upgrades.
  • SEK -4.00% lukewarm response to results.
  • IPH -3.49% selling continues.
  • SGM -3.93% broker downgrades
  • HSO -1.57% broker downgrades.
  • GXL -3.74% results underwhelm.
  • GSW -27.48% hit with a class action.
  • AVZ -6.35% profit taking after good assay results yesterday
  • WSA -3.35% results disappointing.
  • ACX +0.39% results in line.
  • VRT +5.31% results cheer on cost cutting and single digit growth.
  • BUB +20.61% deal to use JD. Com platform.
  • FXL +3.92% results ok and business rationalisation
  • NEA +4.88% rally continues.
  • BRU –1.61% Operational review.
  • BUD – Trading halt - Clarifies revenue position after ASX query.
  • Speculative stock of the day: Australian Mines (AUZ) +26.37% Reinstatement to trade after it partners with SK Innovation to develop the Sconi nickel-cobalt project in Queensland.
  • Biggest risers – JAT, JVG, PAK, NCR, WCN, ALU, AUZ.
  • Biggest fallers – CUL, MSE, VPR, GSW, EMP, JKA, SDL.

Stock Picking

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:

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TODAY

  • Vocus (VOC) –10.45% 1H net profit A$37.3m, down 21%. EBITDA up 12% to A$188.1m. The company has cut profit guidance thanks to an increase in subscriber costs in its consumer business and weaker than expected sign ups than it had forecast. Underlying profit for the year now $125 - $135m, down from $140 - $150m. And EBITDA cut from $370 – 390m to $365 – $380m. There was no dividend declared.
  • Monadelphous (MND) +2.06% 1H net profit $38.26m, up 32%. Sales revenue $874.1m, up 39%. EPS 40.1c, up 31%. The company said there is increased demand for maintenance services, and growth in its water and irrigation business. It says it has secured $385m of contracts for the half. FY revenue is expected to be 30% higher on the pcp and major construction prospects are improving particularly in iron ore.
  • Super Retail Group (SUL) –14.48% 1H net profit $72.2m, down 3%. Revenue $1.32bn, up 2.2%. A 21.5c dividend was declared. The company said it was a pleasing start to the 2H with same store sales up 1.5% for sport, 2%for leisure, and 4.5% for auto. It expects to close four stores and open five new in the up and coming half. The company is also buying Macpac a vertically integrated outdoor supplier from PE and Jan Cameron from Kathmandu.
  • Seven West Media (SWM) +18.63% 1H net profit A$101m, up 5%. Revenue A$810m, down 11%. Net debt reduced to A$711m. Operating expenses down 13.8%on year. Underlying EBIT guidance A$220 - $240m maintained. The company said it expects the TV advertising market to grow in FY18 and publishing advertising market trends to continue, while gross digital revenue is on target to grow $80m.
  • APN Outdoor Media (APO)3.76% FY17 net profit A$44m, down 9%. Revenue $342.9m, up 4%. Underlying EPS 30c, up 3%. Billboards accounted for 10% of revenue. Airport and Rail advertising impacted. Digital revenue was up 13%. The company says contract renewal exposure will be in the single digits for FY18 and FY19. It expects FY18 capex in A$25-A$30m range.
  • Greencross (GXL) 3.74% 1H underlying net profit A$24.4m, up 11%. Revenue $433.3m, up 9%. EPS 19.7c, up 7%. Strong online sales drove the result, followed by in-store GP clinics and specialist and emergency hospitals. Its Australian retail division achieved 6% revenue growth and like for like sales growth of 4%. Excellent trading over Christmas, higher premium food sales and growth online were all key contributors. The company opened eight vet clinics in the half, two of which are set to deliver $1m in annualised revenue. A 10c dividend was declared.
  • Senex Energy (SXY) -1.37% Will take a $80m non-cash impairment in its first-half earnings later this week on write-downs of "non-core" assets in the Cooper Basin, which may be sold or relinquished.
  • Northern Star (NST) – UNCH - announced its profit fell 7% to $79.09m. Revenue 14% to $435.35m, the company said in a statement to the ASX. Northern Star said it will pay a 4.5c interim dividend on April 13 to shareholders of record on March 28.
  • Western Areas (WSA) -3.35% Net profit jumped to $3.51m. Revenue in the six months ended December 31 rose 2.1% to $115.81m. The mining company said it was not paying a half-year dividend.
  • Bapcor (BAP) -1.23% The company reported well with a net profit after tax of $40.4m up $45.2m and an interim dividend of 7c up from 5.5c.

ALL ORDS SECTOR SUMMARY

ALL ORDS TOP MOVERS

ALL ORDS BOTTOM MOVERS

ASX 200 SECTOR SUMMARY

ASX 200 TOP MOVERS

ASX 200 BOTTOM MOVERS

ECONOMIC NEWS

  • RBA Board Minutes - Strong competition in the retail sector, which has kept prices particularly low for food and consumer goods is "expected to persist in the next few years". The bank board remained concerned about weak wages and spending as it decided to leave the official interest rate unchanged at a record low 1.5%.
  • Michelle Bullock (assistant governor- Financial System) from the RBA has given a speech this morning on the issues with financial stress and the household debt problem.

BOND MARKET UPDATE

ASIAN MARKETS

  • The Singaporean finance minister raises property tax, plans GST hike to 9%.
  • China is planning to increase the catch from its far-sea fishing fleet as it clamps down on fishing in its own heavily depleted waters.

EUROPE AND US MORNING HEADLINES

  • Almost two-thirds of the UK branches of fast food outlet KFC remained closed yesterday due to a shortage of chicken, after “operational issues”. Seems the move to DHL didn’t work out.
  • Morgan Stanley has taken an axe to its year-end forecasts for the US dollar, with the investment bank expecting the sell-off to accelerate in the second half of 2018.
  • Deutsche Bank is laying off up to 500 employees at its investment bank ahead of its 2017 bonus.
  • Italian election March 4th. We are going to hear a lot more on this in the coming weeks. Bunga Bunga may be back.

MARKET MAP




View More Articles By Henry Jennings

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.



Important note: Any financial product advice contained in this email is general financial product advice only and does not take into account any one person's objectives, financial situation or needs. Therefore, before acting on any financial product advice in this email, you should consider, with or without the assistance of an independent adviser, the appropriateness of the advice, having regard to your objectives, financial situation and needs.
 

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