Marcus Today End Of Day Report
- ASX 200 finished 20 points higher, ending the week positively amid news of a royal commission and NBN issues.
- Highs in the afternoon were stymied by a stalling in the US senate surrounding increases to the federal deficit.
- High 6011 Low 5969.
- Most banks up (except CBA).
- Telstra fell after downgrading guidance.
- Resources performed well.
- S&P200 rallied 19 points.
- The All Ords up 18 points to 6075.
- Energy companies led the gains after OPEC meeting overnight.
- AUD reached 75.62.
- Bitcoin up $9585.
- US futures -15.
- Asian markets CSI 300 down -0.09%. HK down -0.13% but Japan up +0.28%.
FUTURES AND HIGHS AND LOWS
- MARCUS CALL – Big rise on Wall St means the tax bill has to pass. Broker says the Royal Commission is good for banks. Telstra’s profit downgrade. Quick access link here.
- TRADING PORTFOLIO - No new trades. Just a little concerned about the overnight rise because the market is going to badly kark it if this tax reform bill doesn’t go through. The assumption is that it will of course but that makes this a risky day because assumptions are the mother of all…
- PORTFOLIOS - Being updated today.
- SMALL STOCK PORTFOLIO – Henry is on cloud 9 thanks to GSW’s major announcement that has seen the stock almost double. 10 facts about Bitcoin you may not know. Click here to read his latest blog.
- INSIDERS – Tesla3 is running faster than Black Caviar at Flemington. But we’ve added two new contenders to the fray – one a US-equity hedged ETF. It’s an eclectic bunch so far, but that’s what makes a market. Click here for access to Henry’s latest.
- 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 - DATES ANNOUNCED ON MONDAY – 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
- GSW +83.67% on Amazon deal.
- BBG +21.79% on takeover proposal.
- PHK +2.38% Directors buying.
- APX +7.84% broker upgrade.
- NAN +4.72% Professional body recommendation.
- ORG +1.57% Substantial buying.
- TAH +1.44% ACC wont seek review.
- TTS +0.70% ACC wont seek review.
- DMP +0.09% substantial buying.
BEST AND WORST
- Telstra (TLS) –0.29% The company has revised down its FY18 guidance given the delays in the NBN roll out. It now expects a $600m hit with its EBITDA revised down from $10.7bn to $11.2bn guidance to $10.1bn to $10.6bn. There were no changes to the 22¢ a share dividend. Its total income has been revised down by $700 million. It was expected to be between $28.3bn and $30.2bn for 2018. This has now been revised to $27.6bn to $29.5bn. The revision is not great news but not that unexpected given the problems with the NBN. The positive is the company has reaffirmed the dividend at 22c. Still no great rationale to be in this one.
- Billabong (BBG) +21.79% Has received an indicative non-binding approach from Boardriders Inc at 100c. Shareholders may have something to celebrate this Christmas finally. The board has allowed the US group fronted by Oaktree Capital due diligence.
- Get Swift (GSW) +83.67% The company has announced a multi year partnership with Yum!Brands and more than 250m deliveries world benefit from GSW technology solution. A very positive move. We HOLD GSW in the Small Stock Portfolio. It also announced that it had sealed a deal with Amazon. Champagne corks should be popping at GSW today. This is a huge deal and validates the technology. Stock is up 84% in early trade.
- AIG manufacturing index came in at 57.3 ahead of consensus of 54.
- A 50.8 reading for Caixin's manufacturing purchasing managers' index in November represented a slowdown from 51.0 in October and came in below expectations for a reading of 50.9. The reading was a five-month low for the index and Capital Economics said that the unofficial PMI reading paints a less upbeat picture than the official PMI readings. The decline was primarily driven by a drop in the new orders component from 52.4 to 51.8, they said.
- Japan Q3 Capital Spending Jumps 4.2% YoY and Japan Factory Activity Growth at 44-Month High.
EUROPE AND US MORNING HEADLINES
- A Republican tax overhaul stalled in the US Senate today, forcing lawmakers to weigh new options to address complaints by a leading fiscal hawk about a projected $1 trillion increase of the federal deficit.
- EU and Britain agree settlement post Brexit. Record fall in net migration to UK in year after Brexit vote.
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.