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Marcus Today End Of Day Report
BY HENRY JENNINGS - MARCUS TODAY COMMENTATOR - 27/02/2018
VIEW MORE ARTICLES BY HENRY JENNINGS

Market summary:

  • ASX 200 continues to rally +15 points to 6057.
  • High 6083 Low 6042. Results season drawing to an end.
  • Industrial results cheer as Wall Street boosts ASX.
  • Banks solid ahead of Royal Commission start.
  • Resources picking up friends. Telcos under pressure.
  • AUD down 0.10% to 78.45c.
  • Bitcoin US$10,299.27.
  • US futures down -30 points ahead of Powell's speech to Congress.
  • Asian markets mixed. Japan up +0.78%. China down -1.02%.

FUTURES AND HIGHS AND LOWS

 

MT Stuff

  • MARCUS CALL - Marcus is fully invested and enjoying the upswing in global markets although remains alert but not alarmed on the current volatility. New Fed chief Jerome Powell will set the tone with his first appearance this week in front of lawmakers. Watching intently.
  • SMALL STOCK PORTFOLIO- Henry has added a couple of stocks as MSB rallies hard on broker coverage and Phase 3 trial success. Finally. Still plenty of cash and looking to put it to work.
  • INSIDERS - Three great insights today on JAT, NTC and KRC. Also, we have seen OGX announce some ‘Bonanza gold grades’ this morning.
  • SMALL STOCK OF THE DAY - We look at an unloved tech stock Catapult (CAT) which has suffered recently and requires patience for a year-end ‘prosumer’ push.
  • TRADING PORTFOLIO - Four stop losses raised. Two stocks stopped out. One new trade added.
  • 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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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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Advancers and Decliners

  • UPD +16.58% results cheer.
  • MLX +4.82% copper price helping.
  • GXY -4.36% ORE -5.18% lithium stocks hit on broker report.
  • AAD +2.32% broker optimism.
  • WGX +7.28% roadshow imminent.
  • PTM -3.52% selling continues.
  • BLD +1.16% US exposure.
  • KGN -4.30% Ruslan sells $50m at 880c.
  • WTC -3.83% shine continues to wear off.
  • LON -11.63% results fail to impress.
  • BUB -4.52% profit taking.
  • CRD -6.96% profit taking after result.
  • Z1P-3.35% broker downgrades.
  • BNO +12.00% bio tech boom.
  • MVF -2.86% broker downgrade.
  • PGH -0.91% broker downgrade.
  • MND -0.83% upgraded to a hold.
  • ADH -8.33% downgraded by Goldman.
  • Speculative stock of the day: King River Copper (KRC) +28.07% after vanadium assays of 99.48% V2O5. Great insight from Insiders this morning.
  • Biggest risers – REL, SSN, AUR, NIU, IMS, FGR, WCN.
  • Biggest fallers – SGO, MIL, CSK, EOR, EGL, RXH, BMZ.

POINTS

TODAY

  • Cabcharge (CAB) (+1.9%) 1H underlying NPAT $7.2m. Reported revenue $90m, up 13.8%. Underlying EBITDA $18m. On a statutory basis, the company reported a NLAT of $5.1m which included a non-cash impairment of $12.3m on taxi licence plates. $515m (up 1%) in total fares were processed for the half, signalling a return to growth in key metrics. Taxi service fee income decreased $4.5m, or 16% due to the introduction of new regulations limiting service fees on non-cash payments to 5%. Fleet size increased by 1,352 cars, an 18.3% increase on the pcp. Its acquisition of Yellow Cabs Queensland contributed $15.5m in revenue so far. The company said favourable trends are set to continue in the 2H. A fully franked interim dividend of 4c was declared.
  • Caltex (CTX) (+4.1%) FY17 results. Revenue $21.1bn, up 19%. After tax profit $619m, up 1.5% after a $14m loss due in part to the sale of its fuel oil business. The result includes crude and product inventory gains of $12m. Total Australian transport fuel volumes increased 3.4%. Commercial diesel volumes grew 9.2%. Retail diesel increased 7.2%, offsetting declines across its premium petrol range. Corporate costs increased due to M&A and project costs. Net debt was $814m equating to a gearing ratio of 21%. The company said its SeaOil Philippines acquisition is expected to be completed in the 1Q FY18. It said the loss of the WOW fuel supply, should BP take formal action against the ACCC regarding a prospective sale, would have a financial impact of $150m EBIT. It is taking steps to replace those earnings via M&A. A final dividend of 61c was declared.
  • Iluka Resources (ILU) (+3.6%) Today reported an annual net loss of $171.6m due to one-off charges. The company restated its final dividend of 25c and reported a doubling of underlying earnings lifted to $360.5m from $150.5m a year prior. Net debt was also reduced 64% to $182.5m. MD Tom O'Leary said, while the loss is disappointing, underlying performance is encouraging and reflects an improvement in mineral sands markets.
  • Costa Group (CGC) (+9.9%) 1H 2018 results. Net profit up 15% on year to $28.6m, revenue up 9.8% to $489.4m and underlying EBITDA came in at $60.9m up 24.2% on 1H 2017. An interim dividend of 5c has been declared. The company expects full-year earnings to be weighted to the 2H and, anticipates NPAT growth of 25% up from previous guidance of 20%.
  • Bingo (BIN) (-1.9%) net profit after tax for the first half of 2017-18 was up 30.1% to $17.8m, and revenues were 43% to $141.7m. Costs rising on higher tipping fees.
  • Speedcast (SDA) (-6.8%) Total revenue of US$514.2m and EBITDA of US$122.6m. Margin surged to 23.8% with a final dividend of 4.80c. Slight miss on forecasts.

ANNOUNCEMENTS

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

BOND MARKET UPDATE

ASIAN MARKETS

  • The Bank of Korea kept its benchmark interest rate unchanged at 1.5% on Tuesday, as forecast by economists.

EUROPE AND US MORNING HEADLINES

  • Qualcomm seems open to another bid from Broadcom but has to be above US$160bn. ‘Woo, oh, the bids are getting bigger’.
  • Fed Ex gives NRA members a discount.
  • Fitbit sales were lacklustre during the holiday period in the US.
  • In the UK the Government introduced the Domestic Gas and Electricity (Tariff Cap) Bill in Parliament, which tasks industry regulator Ofgem with creating a cap on the most expensive standard tariffs until 2020 with a potential extension to 2023. Seems there will be serious job losses in the sector. The government believes that households are being overcharged £1.4bn.

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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