Marcus Today End Of Day Report
VIEW MORE ARTICLES BY HENRY JENNINGS
- ASX 200 down 43 to 6042
- Weak from the start on banks and Royal Commission fallout.
- Nowhere to run, though tech stocks held up slightly.
- Broad-based losses with CSL under pressure.
- Resources fold too. Energy runs out of steam.
- AUD better at 75.84c.
- Bitcoin falls again to US$8334.
- AUD Gold rallies to $1286.
- US futures up 27.
- Asian markets better on trade talk success with Japan 0.23% and China up 0.32%.
FUTURES AND HIGHS AND LOWS
- MARCUS CALL – Weekend trade talks wash through. Royal Commission headlines push market lower - BWX, HSO and WTC.
- SMALL STOCK PORTFOLIO – A look today at one of our local FANGs as APX stirs our interest.
- INSIDERS – Tech talk today as a Townsville startup attracts serious funding and how to play unlisted tech companies.
- TRADING PORTFOLIO – No new trades. One stop loss raised.
- INSIDERS CONNECT WITH US - We invite you to send us your own stock ideas.
- TLS -2.14% outage bites.
- CSL -0.96% profit-taking.
- BIG CEO resigns. Company puts Big Review into administration
- BWX +35.37% MBO at 660c.
- JHX +4.01% results cheer.
- CBA +0.23% slips below $70.
- APT +1.85% director’s sales.
- AMP +1.52% broker upgrade.
- AHY +2.60% broker update.
- TNE -6.06% results disappoint.
- HSO -2.44% rejects bid and downgrade.
- PTM -3.47% profit-taking.
- AYS -17.10% change in substantial holdings
- MHJ +3.57% bargain hunting ion thin volume.
- Speculative stock of the day: Lodestar (LSR) +91.3% after outstanding drill results from Gidgee Flat and Contessa. 4m @74g/t AU from 140m the best.
- Biggest risers – JHX, AHY, BKL, DMP, AMP.
- Biggest fallers – ALU, TNE, MND, ORE, GEM.
- James Hardie (JHX +4.01%) – Net profit -47% to US$146.1m on the back of asbestos compensation claims in Australia. Adjusted net operating profit, which strips out asbestos liabilities, rose by 17% to US$291.3m. The company remains positive on its US operations and expects earnings margin before interest and tax of its North America Fiber Cement business to be at the top end of a 20% to 25% range.
- Healthscope (HSO -2.44%) - The company has rejected the bids from BGH and Brookfield and denied the companies due diligence for either bid from Brookfield or BGH. The Board believes that it is not in the best interests of Healthscope shareholders to provide due diligence access to either party. The Board is committed to maximising value for shareholders and has decided to commence a strategic review of Healthscope's substantial freehold property portfolio. Healthscope owns 29 freehold properties that are expected to have a market value well more than their current book value of approximately $1.3bn. The Company now expects Hospital Operating EBITDA for FY18 to be between $340m and $345m compared with FY17 Hospital Operating EBITDA of $359.4m. The Northern Beaches hospital is on track for opening in October, and the company is targeting FY19 hospital operating EBITDA of at least 10%. Results due August 21st August.
- BWX - A management buyout announced last night priced at 660c by the CEO and finance director backed by Bain Capital. Plenty of question marks surrounding the bid on an ethical front but shareholders will be happy. Well happier. The bid is either 660c cash or a 25% cash and 75% interest in the new company.
- Sirtex (SRX -0.03%) - The company is in a trading halt this morning pending an announcement by Thursday.
- BIG Un (BIG) - Announcement this morning that the Big Review TV business had been placed into administration.
BEST AND WORST
- Nothing today
ASIAN MARKETS NEWS
- China is considering birth limits as soon as this year. Unfortunately, the one baby policy roll back has done little to increase birth rates as it is too expensive now to have children.
EUROPE AND US MORNING HEADLINES
- Mark Zuckerberg is set to face EU regulators today. Plenty of ‘Mea Culpa’ and a chance for the officials to hang with the cool kid. And it's going live via a web stream. How very Facebook of you.
- Favourite for Italian PM is now Giuseppe Conte.
- Sony has agreed to buy a controlling stake in EMI Music Publishing for US$2.3bn
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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