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Marcus Today End Of Day Report
BY HENRY JENNINGS - MARCUS TODAY COMMENTATOR - 22/01/2018
VIEW MORE ARTICLES BY HENRY JENNINGS

 Today’s Headlines

  • ASX 200 down 14 to 5992. Psychological barrier breached.
  • High 6018 Low 5992 Light volume ahead of Australia Day.
  • Financials weigh as CBA suffers broker downgrade.
  • TLS and consumer stocks rise slightly.
  • AUD steady around 79.90c
  • Bitcoin US$11,643.
  • US futures down 36 on day three of shutdown.
  • Asian markets slightly mixed with CSI 300 up 0.75% and Japan down 0.17%.

Mt Stuff

  • MARCUS CALL – US government shutdown yet the Dow futures moves skyward yet again. Some tips if you’re tempted to sell. And other interesting stuff to keep you on the edge of your seat.
  • TRADING PORTFOLIO – No new trades. But TWE is flying and our stop loss is raised accordingly. We were stopped out of AXP.
  • SMALL STOCK PORTFOLIO – Henry is commiserating lithium performance last week, factoring in of course our medium term portfolio horizon. He lists our stocks to watch. And considers the press on GSW. A good overall summation on our small stock portfolio to date.
  • INSIDERS – ‘Rank Amateur’ says that Department 13 (D13) is a BUY. This company manufactures an anti-drone systems called Mesmer. Fascinating. Henry dissects accordingly. Thanks Rank Amateur for the insight.
  • 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:

Advancers and Decliners

  • DHG -17.17% CEO resignation for family reasons. FXJ -9.72% follows as 60% owner.
  • KDR -6.81% PLS -5.05% lithium fall out continues.
  • UPD -10.00% valuations questions.
  • KGN -4.71% update leads to profit taking.
  • VCX - Unchanged- Asset revaluation.
  • NEC +6.89% ratings stronger.
  • SWM +4.55% boosted by FXJ fall out.
  • A2M +1.39% rally continues.
  • MEA -12.28% board resignations and profit downgrade.
  • PNI +10.86% after profit upgrade to $8m.
  • TWE +2.71% technical buying on strong AUD.
  • RFG -2.42% slide continues as new role created to look after franchisees.
  • BYE +5.45% positive drilling update.
  • GSW – Trading halt as Chanticleer asks questions.
  • Speculative stock of the day: Ecargo (ECG) +233.33% after announcing it would acquire Jessica’s Suitcase from Kevin Rudd’s daughter. ECG will buy 45% of the company with an option to buy the remainder. Jessica Rudd will join the board.
  • Biggest risers – PNI, NEC, YAL, SWM and OMH.
  • Biggest fallers –KDR, UPD, DHG, MYX, and IVC.

FUTURES AND HIGHS AND LOWS

TODAY

  • Domain Group (DHG) –17.17% A shock announcement this morning that Antony Catalano has resigned from the group for family reasons. Not a good result as Catalano was seen as the great hope for DHG to take on REA. The company is now conducting a global search for a replacement. And quickly it would seem.
  • Quintis (QIN) – suspended - The company has announced it had entered administration. Hardly a surprise and a vindication for the US hedge fund that short sold the company and had a damning report on the company.
  • AuMake (AU8) –4.00% The company has successfully raised $14m in a placement at 45c supported by existing shareholders associated with non-executive director, Quentin Flannery. The company has also welcomed a cornerstone Chinese investor.
  • Yojee (YOJ) – 5.66% The company has announced the completion of the block chain integration to provide seamless regional freight networking. First blockchain software product expected to be released in this quarter.
  • Zip Co (Z1P) +1.15% Appointment of Dianne Challenor as a non-executive director.
  • Animoca Brands (AB1) – Trading halt and capital raising. Given the huge run last week hardly a surprise the company is raising money. ‘Crazy Defense Heroes’ online gaming app had strong Asian sales hence the huge share price appreciation.
  • McGrath (MEA) –12.28% Changes to the board and earnings update. CEO, Cameron Judson and Head of Corporate Services, Morgan Sloper will leave the company together with Nigel Dews as CEO of Message Media. EBITDA is now expected to be $1.63m before one off items giving a small loss of $50,000. Stage two of the restructure is expecting to deliver $5m in savings and deliver a full year EBITDA of between $5.8m-$6.8m.
  • Get Swift (GSW) – Trading halt pending an announcement regarding the AFR article this morning.
  • Kogan (KGN) –4.71% Trading update – Cash of $28.2m Strong growth achieved in 1HFY18. Acceleration in trading momentum in 2QFY18 with the business outperforming management budgets.
  • Australian Pharmaceuticals (API) –3.59% Trading update with NPAT now expected to be $26.5m. The half year is expected to be down 9% due to ‘supressed retail conditions’ at Priceline. Christmas trade was also underwhelming with no pick up.

ASX 200 SECTOR SUMMARY

ASX 200 TOP MOVERS

ASX 200 BOTTOM MOVERS

ALL ORDS SECTOR SUMMARY

ALL ORDS TOP MOVERS

ALL ORDS BOTTOM MOVERS

BOND MARKETS

ASIAN NEWS

  • Shares of HNA Group units fell in Shanghai and Shenzhen trading after more of the conglomerate’s subsidiaries halted their stock from trading, pending "major"’ announcements. HNA Infrastructure fell by 10%, the daily limit in Shanghai and HNA Innovation Co fell 9%.

EUROPE AND US MORNING HEADLINES

  • Davos kicks off January 23. Trump will be there (closing keynote address) as will May, Modi and Elton John. This year’s theme is “Creating a shared future in a fractured world”. Runs all week. Will Elton play Rocket Man?
  • Looks like Merkel will be back after SPD votes to hold coalition talks.
  • Fitch has upgraded Spain’s credit rating to A- from BBB+.
  • S&P Global Ratings upgraded Greece’s long-term sovereign credit rating by one notch to B from B-’

 

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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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