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Zinc Shortage Good News For Ironbark

Ironbark Zinc (ASX: IBG, Share Price: $0.12, Market Cap: $51m) is the first pure zinc exposure that we have incorporated into our Portfolio since we began way back in December 2010. The rationale for this has been quite clear – zinc has until recently been a poor-performer from a pricing perspective – hence there has been no sound reason to this point to recommend zinc equities. Nevertheless, we have covered zinc extensively from a sector perspective and we have consistently highlighted the looming supply gap that would emerge. We are now approaching a critical point in terms of declining supplies from existing zinc sources, which we believe justifies the introduction of a world-class emerging zinc producer.

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Breaking Down The Budget

Federal Treasurer Joe Hockey’s claim that the Government’s latest budget provides a “credible path back to surplus” has been widely derided – as is usual. According to the Budget papers, the now yawning budget deficit of $35 billion expected for 2015-16 (2.1% of GDP) is then projected to gradually shrink over the next few years, such that by 2019-20 it should again be back in the black.

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Budget Benefits Car Dealers

Two weeks ago we discussed the leading signals that pointed to Automotive Holdings Group (AHG previously AHE) being re-rated significantly higher on the basis of a profit upgrade from peer AP Eagers (APE), record new car sales for February and March and record low interest rates. Together with a low valuation, attractive 5% fully franked dividend yield and an exceptional chart formation it looked set to move to record territory.

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RBNZ Moves To Cool Hot Property Market

Sydney’s property boom is threatening the economy – right? Yep The Reserve Bank has said just that and in fact the central bank also says the property boom in Australia’s biggest city threatens to unbalance the wider economy and the financial system. Sydney’s property boom is being driven by investors, especially self-managed super funds and foreign buyers (predominantly from China).

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Underperforming Yourself

Investors may understandably be puzzled if their investment returns are very different from the managed investment funds holding their money. Vanguard analysts in Australia and the US have examined this phenomenon in which investors appear to be effectively underperforming themselves.

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CSR Booms, Dividend Up

Building products group CSR has confirmed the solid rebound reported in its in interim profit late last year in reporting an 82% jump in underlying full-year profit yesterday to $146.5 million, thanks to the surge in new home construction which boosted sales of bricks, glass and other products.

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