Marcus Today End Of Day Report
VIEW MORE ARTICLES BY HENRY JENNINGS
- ASX 200 up +42 points, strong rally to 6042.
- High 6042 Low 6005. Good volume, closes on high.
- Banks gain ground with resources.
- Results again the focus. The good, the bad and the downright ugly.
- APA resumes following institutional entitlement success.
- AUD firms a little to 78.65c.
- Bitcoin steady at US$9,840.
- US futures up 53 points.
- Asian markets strongly higher with Japan up 1.00%. China up 0.76%.
FUTURES AND HIGHS AND LOWS
- MARCUS CALL – It’s a risky week for the US market this week. And is it time to buy utilities REITS and infrastructure?
- SMALL STOCK PORTFOLIO – Henry is deploying some cash this week amid results season.
- INSIDERS – Phoslock is going well. Henry revisits this great Insider tip.
- 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
- MSB +10.79% biotech takeovers continues.
- LYC +5.29% confidence returns.
- APA -4.12% entitlement offer kicks off.
- MYX -4.52% broker downgrades.
- CBA +1.51% ASIC expands rate case.
- WTC -4.85% gloss wearing thin.
- BDR +17.39% US$60m facility with Sprott.
- DMP -2.46% clarifies CEO sales and margin lending.
- HUB -6.64% results underwhelm.
- BWX -2.00% broker downgrades.
- NEC +6.28% momentum trades helping.
- SXY +8.33% broker upgrades.
- WTP +14.93% partial bid at 92c from BESIX.
- ASL +7.92% results cheer.
- SM1 +3.19% buyers return.
- SXL +2.80% broker upgrade.
- ORE +6.11% positive broker comments.
- SIV -28.34% restructure and closure of GoGetta.
- Z1P -11.81% results disappoint.
- ADH -5.26% misses recent guidance.
- ISD -9.92% CEO quits and lacklustre results.
- MVF -6.49% challenging environment.
- BIG remains suspended.
- Speculative stock of the day: RHS +89.29% another one bites the dust with RHS being bid for by PerkinElmer at 28c cash. RHS is a bio tech creating new ways to test DNA for cancer screening.
- Biggest risers – MSB, ASL, GSC, SXY, RWC and BAL.
- Biggest fallers – AVZ, MYX, GEM, HUB, MYO and APA.
- Bluescope Steel (BSL) +2.26% 1H net profit A$441.2m, up 23%. Underlying EBITDA A$703.5m, down 8% on year. Interim dividend of 6c. The company is extending its buyback by a further A$150m. The company said the results were better than expected due to improving business performance and economic conditions, and the added benefit of its recent $32.1m coal supply dispute settlement. Good result. The market will like this one with the buy-back being extended. The company has also issued guidance of underlying EBIT to be 25% higher in the second half.
- Reliance World (RWC) +6.76% 1H net profit A$41.5m, up 18% on year. EBITDA of A$79.3m, up 24.5%. Net sales of A$362.6, up 28.3%. Interim dividend 3.5c. Increased EBITDA guidance of A$150m – 155m, up from A$145 – 150m. The company has continued strong sales growth in the US led by its core SharkBite products, now in 23,000 outlets.
- QBE Limited (QBE) –3.26% FY17 results. Statutory net loss of A$1.2bn includes the non-cash write-down of $700m of goodwill and $230m of deferred tax asset in North America. Adjusted combined operating ratio of 104.1% was consistent with guidance. Final dividend of 4c compared with FY16 of 33c. The losses reflected extreme catastrophes such as Hurricanes Harvey, Irma and Maria and the Californian wildfires. The company said its Asia Pacific operations combined operating ratio of 115.5% was ‘unacceptable’ and plans have been implemented to improve performance through more robust risk selection, pricing and claims management. The result is consistent with guidance the company gave recently.
- Vocus Group (VOC) +1.69% Geoff Horth is leaving the company by 'mutual agreement'.
- Propel Funerals (PFP) +1.28% Revenue up 84% ahead of expectations. EBITDA of $11m up 78% and guidance increased to $21.1m 15% above prospectus.
- Monash IVF (MVF) –6.49%7.94% 1H NPAT $12.1m, down 20.9%. Revenue $77.0m, down 2.2%. EBITDA $20.8m, down 17.7%. Interim dividend of 3.4c. The company said its 1H results were impacted by operational challenges related to ‘changing competitive dynamics and investments’ and high-volume doctor departure. Stimulated cycles decreased by 10.5% in all States. Market share decreased by 4% in Victoria thanks to doctor departures; the company expects this to continue in the 2H.
- G8 Education (GEM) –7.94% FY17 results. Revenue $795.8m, up 2.4%. EBIT $150.8m, up 2.2%. Underlying net profit $92.9m, down 0.5%. EPS 21.8c, down 11.7%. The company said in a statement the results were slightly short of previous guidance thanks to challenging market conditions, higher discounts and lower occupancy levels (-3.2% overall). It said a 20% increase in government funding to commence in July 2018 will increase demand in the sector.
- Zip Co (Z1P) – 11.81% 1H revenue $16.0m, up 139%. Transaction volume $235.3m, up 183%. Loan book of $231.3m, up 164%. Bad debts 2.28%, below industry benchmarks. The company said it has more than 530,000 customers on the platform, and 7,800 merchants.
- Ardent Leisure (AAD) +2.92% half year loss $15.6m this included an impairment charge for Dreamworld.
- Amaysim (AYS) -3.93% after more than doubling revenue to $294m but costs of integrating systems weighed and AYS scrapped its dividend to invest in growth.
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 SECTOR SUMMARY
ALL ORDS TOP MOVERS
ALL ORDS BOTTOM MOVERS
ASX 200 SECTOR SUMMARY
ASX 200 TOP MOVERS
ASX 200 BOTTOM MOVERS
- Nothing today.
BOND MARKET UPDATE
- China's ruling Communist Party on Sunday set the stage for President Xi Jinping to stay in office indefinitely, with a proposal to remove a constitutional clause limiting presidential service to just two terms in office. Trump may be watching.
- Average new home prices in China's 70 major cities rose 5% in January from a year earlier and 0.3% month on month. Prices in December grew 5.3% on year and 0.4% on month, based on data which included affordable housing.
- Galaxy S9 focuses on new camera tricks, super slo-mo and low light selfies.
- BMW Minis will be built in China under a deal with Great Wall to produce an electric powered Mini. The Chinese government has set a target that 20% of cars sold should be electric or rechargeable-hybrid vehicles by 2025. Last year BMW sold 560,000 cars in China.
EUROPE AND US MORNING HEADLINES
- UK PM May will introduce legislation to Parliament today to cap prices charged to consumers by the U.K.’s biggest utilities, following through on a pledge the prime minister made in last year’s general election.
- Geely jumped 8.0% today after it was revealed the company had built a US$9bn stake in Mercedes-Benz owner Daimler in a bid to share electric vehicle technology.
- Fiat Chrysler is set to stop making diesel cars by 2022.
- Buffett is retiring from Kraft Heinz board to reduce travel commitments.
- US cloud storage company Dropbox, which has been previously valued at US$10bn, filed for an IPO last week.
- Italian elections will start to become a thing by weeks end. Berlusconi is back? Bunga Bunga.
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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