Marcus Today End Of Day Report
VIEW MORE ARTICLES BY HENRY JENNINGS
- ASX 200 down 53 points to 5969 as capital raisings weigh.
- High 6013 Low 5957.
- Banks sag ex dividend. TLS continues down.
- Energy stocks under pressure as WPL sell down causes reshuffle.
- Miners hurt with broad based selling.
- AUD weaker at 76.33c after Lambie resigns.
- Bitcoin US$6573.
- US futures down 14.
- Asian markets modestly weaker with Japan down 0.17% and China CSI 300 down 0.19%.
- ADVANCED EDUCATION COURSES - I have posted a new Sydney Saturday date for my Education Course "Stock Picking for the Active Investor" with Marcus Padley - You can book below - details in Newsletter - It is a one day course. Our first advanced/intermediate stock picking events have only been offered to Members so far and we have sold out one of the Melbourne events and have as good as sold out Sydney. We only started offering the course on Saturday. We will be offering new dates and events in other States soon. We are also going to be offering a Beginners 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. At the moment we are only advertising courses to Members only but that will change. Click on the dates to book:
Friday February 23rd 2018 - MELBOURNE (SOLD OUT)
Friday March 2nd 2018 - MELBOURNE (8 places left)
Friday March 16th 2018 - SYDNEY (Only 2 places left)
- MARCUS CALL – Amazon’s arrival and who should be nervous. Woodside sold down by Shell.
- STOCK OF THE DAY – Tabcorp enjoys an upgrade in valuation.
- TRADING PORTFOLIO - We were stopped out of WPL.
- SMALL STOCK PORTFOLIO – MSB rallies. And a possible new catalyst for the lithium space.
- INSIDERS – The medical cannabis sector is getting traction again.
- 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
FUTURES AND HIGHS AND LOWS
Movers and Shakers
- AAD -0.28% Interim CEO of Bowling division announced.
- IPL +4.81% positive results and buyback.
- ORE +4.24% investor presentation.
- ELD +3.93% broker upgrades.
- DEG -15.28% profit taking.
- AJM -8.24% profit taking.
- WPL -3.23% Shell sell down at 3110c.
- VTG -1.23% competes acquisition of cosmetic company.
- SRX -0.92% Conference presentation.
- Speculative stock of the day: Victory Mines (VIC) +150% after announcing an acquisition of a highly prospective cobalt and scandium project.
- Biggest risers –VIC, AYM, MXR, LKO, MPE, DHR, QNL.
- Biggest fallers – NUI, WFE, MEM, TPD, GBR, ENT, FE8.
- Incitec Pivot (IPL) +4.81% reports full year results. Revenue up 3.6% to A$3.47bn. Net profit up 8% to A$318.7m. Dividend of 4.9c. Key points: It has suspended its dividend reinvestment plan and will initiate a A$300m share buyback over the next year. 60% of 1H18 USD-linked fertilizer sales have been hedged. Buyback helps. New CEO too. Positive announcement.
- Lendlease (LLC) –1.81% Announces Elizabeth Proust as non-executive director.
- Computershare (CPU) +4.87% The company has upgraded guidance this morning with an increase now of 10% due to strong contributions from its Corporate Actions and Mortgage Service business. Previous guidance was for around 7.5% growth. Guidance upgrade assumes that equity markets remain at current levels, interest rate markets remain in line with current market expectations, and that there is a modest improvement in Corporate Actions. Upgrade looks good and should draw some broker upgrades to the stock. Plus the USD earnings are attractive.
- OFX Group (OFX) –3.78% Results today showed active clients up 5.1% with corporate growing at 12.2%. Transaction volume at 12.2% and Average transaction value down 4.1%. Earnings before depreciation and amortisation was $13.4m Dividend of 2.4c. Net Profits after Tax down 14.1%. Not a result the market will warm to. OFX is still an avoid.
- Orocobre (ORE) +4.24% has given an investor presentation. Market continues to like the story.
BEST AND WORST
- Business conditions hit an all-time high in October, according to NAB's latest monthly survey.
- Industrial output rose 6.2% from a year earlier in October, versus a median projection of 6.3% and September's 6.6%.
- Retail sales expanded 10% from a year earlier, versus an estimated 10.5% and 10.3% the prior month.
- Fixed-asset investment excluding rural households rose 7.3 % in the first 10 months of the year over the same period in 2016, matching economists' forecasts.
- Property investment grew 5.6% in October from a year earlier, cooling from expansion of 9.2%in September, according to Reuters calculations based on data from the National Bureau of Statistics. October's growth was the slowest since July.
- Indian power companies are avoiding long term coal deals as they await the falls in battery and renewable energy alternatives.
EUROPE AND US MORNING HEADLINES
- The California Public Employees’ Retirement System (CALPERS), the largest U.S. pension fund, is considering more than doubling its bond allocation to reduce risk and volatility. Equities could be cut to as little as 34% from 50%. Stocks were the best-performing asset class in fiscal 2017, returning almost 20%.
- Venezuela declared in default by S&P after missing bond payment.
- Italy not going to Football World Cup.
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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