Marcus Today End Of Day Report
- ASX 200 falls 41 points to 5970 on Royal Commission.
- High 6003 Low 5949.
- Bank switching after government backflip.
- CBA seen as the risk.
- Miners struggle on lower metal prices.
- Defensives find buyers.
- AUD steady at 75.82c on capital data.
- Bitcoin recovers to $10600 after 20% fall.
- US futures up 18.
- Asian markets easier as tech sell off continues. CSI 300 down -0.42%. HK down -1.37% but Japan up +0.33%.
FUTURES AND HIGHS AND LOWS
- MARCUS CALL – Royal Commission into banks; the tech sell off; and the fund manager who is ‘very nervous about the market’. Quick access link here.
- TRADING PORTFOLIO - One new trade. And one stop loss hit.
- SMALL STOCK PORTFOLIO – Henry adds a biotech stock, NOX to his watchlist. Click here to read his latest blog.
- INSIDERS - A Member's recommendation on EUR is our current and new League Table leader. The stock is up 250% since its addition to our Insiders forum. Henry also takes a look at Renascor (RNU) - who 'The Keeper' says is a BUY. Click here for access.
- 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:
ADVANCED EDUCATION COURSES
Friday February 23rd 2018 - MELBOURNE (SOLD OUT) - will add numbers soon
Friday March 2nd 2018 - MELBOURNE (SOLD OUT) - will add numbers soon
Friday March 16th 2018 - SYDNEY (SOLD OUT)
NEW EVENT - Saturday March 17th – SYDNEY
NEW EVENT - Wednesday April 18th 2018 - GOLD COAST
NEW EVENT - Friday 20th April 2018 – BRISBANE
The BEGINNERS EDUCATION COURSE – An Introduction to financial concepts, your investment options, where you are with Super, and an introduction to the stock market.
This will be more cheaply priced and will be conducted over a morning rather than a day and will make a great Christmas present for you or your children.
It will improve their financial literacy in a way I wish mine had been improved a lot earlier than it was. I will publish more details when we arrange dates and venues.
Movers and Shakers
- LVH +10.58% gaining fans.
- LYCDA -1.46% first day trading after consolidation.
- AWE +22.94% up on Chinese state company bid at 71c.
- FMG -0.43% appoints two women to run the company.
- ORL – Goes into administration.
- APX +22.47% returns after positive capital raising and acquisitions.
- EHL +4.00% completion of acquisition.
- CCL +2.32% defensive buying.
- MYR +6.08% stirring.
- RFG +2.97% AGM positive.
- KDR -3.64% profit taking.
- JIN +5.06% positive outcome from TAH/TTS CrownBet talks.
- WTC -3.65% director selling takes wind out of sales.
- BPT +1.94% finding buyers after AWE bid.
- TLS +1.18% yield investors chase on bank falls.
- EUR +20.00% Insider leader continues rally.
- Speculative stock of the day: Love Group (LVE) +39.53% after a presentation to shareholders on matchmaking site global potential.
- Biggest risers – APX, VRL, MYR, SLC, WGX and RFG.
- Biggest fallers – ALL, ASL, CLQ, AWC and IGO.
BEST AND WORST
- Aristocrat (ALL) –6.82% The company has delivered a strong performance with EDITDA up 24.2% to $1001.2m. EPS up 36.2c. Final dividend of 20c fully franked. Outlook is continued growth in FY18. Investors will like that. The company has also announced a strategic acquisition of a social media gaming company Big Fish for US$990m. This will transform ALL into the #2 social casino owner by revenue.
- Tabcorp (TAH) -unchanged- has entered an agreement with Crown Resorts (CWN) -1.36% for CWN not to oppose the merger with TTS. In return TAH has agreed to supply a digital stream of SKY 1 and 2 to CrownBet for betting customers. This is a good move for TAH and the TTS merger.
- AWE +22.94% The company has received another indicative proposal from China Energy Reserve (CEROG) for the company at 71c. This is not the first time the company has been bid for with the last one failing to get up at around 80c. An interesting move from a Chinese state run company. That is now both STO and AWE under siege from predators. Who is next?
- Oroton Group (ORL) - The company has been placed into administration and suspended from the exchange. Another retail casualty. Hardly a surprise just surprising that high profile fund manager, Will Vicars from Caledonia still has around 18% of the company.
- Fortescue Metals (FMG) –0.43% Finally the company has announced its Core Leadership Team (CLT) with Elizabeth Gaines being promoted to CEO to replace Nev Power. Ian Wells becomes CFO, Julie Shuttleworth becomes deputy CEO and Greg Lilleyman is COO.
- Private Capital Expenditure has risen 1.0% in September.
- The trend volume estimate for total new capital expenditure rose by 1.1% in the September quarter 2017 while the seasonally adjusted estimate rose by 1.0%.
- The trend volume estimate for buildings and structures rose by 1.0% in the September quarter 2017 while the seasonally adjusted estimate rose by 1.2%.
- The trend volume estimate for equipment, plant and machinery rose by 1.2% in the September quarter 2017 while the seasonally adjusted estimate rose by 0.7%.
- Dwelling approvals rise 0.7%
- Tech stocks continue to sell off in Asia. FANGs for the memories.
- The official Purchasing Managers' Index (PMI) released on Thursday stood at 51.8 in November, compared with 51.6 in October. Growth in China's manufacturing sector picked up in November, despite a crackdown on air pollution and a cooling property market.
- Economists see fourth-quarter economic growth moderating to around 6.6%, and slowing further to 6.4% in 2018, as borrowing costs rise and the boost from earlier infrastructure projects begins to fade.
- New manufacturing orders picked up to 53.6 from 52.9.
- New export orders increased to 50.8 from 50.1.
- The steel industry PMI rose to 53.1 from 52.3.
- The Bank of Korea has raised interest rates for the first time in more than six years, heralding a tightening cycle on the back of the country’s export-driven economic recovery.
- Japan’s industrial production returned to growth in October but grew at a slower pace than forecast. YoY grew at 2.5%.
EUROPE AND US MORNING HEADLINES
- US calls on China to stop oil supplies to North Korea and warns if it comes to war 'regime will be utterly destroyed'.
- UK consumer confidence has fallen to -12. Consumers shunning major purchases. All five measures used by GfK to calculate the score declined, with the willingness of consumers to make major purchases posting the biggest drop.
- Poor old Theresa May now being attacked by Trump Tweets as the UK tries to justify the divorce payment to the EU.
- Sterling having a decent run as Brexit fears ease.
- Rooney hits three against West Ham.
- US Tax cuts in the spotlight but maybe 22% not 20%.
- UK is building an $140m battery research base in Coventry. The National Battery Manufacturing Development Facility (NBMDF) will bring together academics and businesses to work on new forms and designs of batteries, as well as their chemistry and components.
Marcus Padley is the founder of the Marcus Today share market newsletter. Marcus is a stockbroker and has been advising institutional clients and a private client base for over 32 years.To gain further insights from Marcus Padley and his team of analysts, register for a free trial of the Marcus Today daily newsletter.