ASX Materials Shares News: OneSteel Ltd (OST)

OneSteel Ltd (ASX:OST) is an Australian manufacturer of steel and finished steel products and a leading metal distributor which is listed on the Australian Stock Exchange.

OST, which was spun out of BHP in October 2000, markets products used in the construction, manufacturing, housing, mining and agricultural industries.

OneSteel announced today that it will write-down $150 million of the value of its LiteSteel Technologies business due to weak residential construction activity.

The company said that the financial statements for last six months of the year will include $90 million of the write-down.

OneSteel also announced that it will sell its Piping System business for $67 million to US based McJunkin Red Man.

Together with the sale of related property investments the company expects proceeds of approximately $100 million.

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Gold Shares Buy-Back News: St Barbara (SBM)

St Barbara (ASX:SBM) is an Australian Small Cap gold producer and explorer.

SBM’s primary assets are its Southern Cross and Leonora operations, both of which are located in Western Australia. The company purchased the Gwalia (WA) mine in 2005, which has now become its main focus.

St Barbara today announced it has established an on-market share buy-back facility to repurchase up to a maximum of 15 million of its ordinary shares.

The buy-back will be conducted over a six month period.

The company stated the buy-back facility will enable it to apply its strong balance sheet and cash position to consolidate the company’s capital base for the benefit of shareholders.

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Materials Stocks Profit News: Macmahon Holdings (MAH)

Macmahon Holdings (ASX:MAH) is an engineering contracting company operating in the mining industry. The company operates in Australia, New Zealand and Malaysia. It was formed in 1963 and listed on the Australian Stock Exchange in December 1983. The business consists of four divisions: Civil, Open Cut, Underground and Services.

Macmahon Holdings announced today that it expects full year net profit for the FY12 to be more than $55 million.

Last month MAH had forecasted full year profit of around $45 million.

CEO Nick Bowen said that additional work and greater clarity on project commencement has combined for the improved outlook for the company.

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Australian Stocks News: Billabong (BBG)

Billabong (ASX:BBG) is a major international retailer whose core business is the marketing, distribution, wholesaling and retailing of apparel, accessories, eyewear, wetsuits and hardgoods.

BBG's products are licensed and distributed in more than 100 countries, and are distributed through specialised retailers and through their own branded retail outlets.

Billabong provided the market with a trading update today, in which it announced a strategic review of its operations and capital structure after a slowdown in Christmas sales.

The company also downgraded its EBITDA guidance for the first half of FY12 to $70-$75 million compared to the previous corresponding period’s $94.6million

Billabong said reasons for the slowdown varied by region, but it believes fears of a global recession are impacting consumer confidence and spending patterns.

Billabong has been one of the shares to sell amongst recent times.

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ASX Mining Shares to Sell: Kagara (KZL)

Kagara (ASX:KZL) is a copper, zinc-lead and nickel miner, with operations in North Queensland and WA. It has four operational hubs in North Queensland – Mungana, Mt. Garnet, Balcooma and Thalanga.

KZL’s North Queensland mines supply ore to three treatment facilities in Mt. Garnet (copper and polymetallic) and Thalanga (polymetallic).

A strategic review determined KZL’s nickel operations at Lounge Lizard, WA to be non-core, and so the group has put the assets up for sale.

The company faced major operational issues in FY11, which culminated in a $32.2 million loss.

An uncertain outlook for commodities has come at a poor time for Kagara, with its recently announced capital raising highlighting potential cash problems at the company.

Although KZL recently unveiled a five year turnaround strategy, we feel there are significant near-term headwinds that are likely to keep its share price under pressure.

Operational issues

KZL’s September quarter activities report revealed a 3% fall in copper output from the June quarter. However that was balanced by a 13% rise in zinc output.

Cash costs for both commodities fell on the quarter, reflecting the company’s focus on protecting its margins in the face of declining prices.

The quarterly output result followed a hugely disappointing FY11, which was characterised by a $32.2 million loss (compared to a $3.2 million profit in FY10).

The loss came on the back of a $48.5 million write-down of KZL’s Mt. Garnet and Mungana mines (Mungana Mines: MUX is 61.9% owned by KZL).

Production over the year was impacted by a prolonged wet season.  This was accompanied by rising cash costs over the year, which came about due to lower zinc output and adverse FX movements.

Uncertain commodities outlook

Europe’s debt crisis coupled with signs of a slowdown in Chinese economic activity has clouded the outlook for KZL’s key commodities – copper and zinc.

Copper has slumped around 17% from the highs it created in July, whilst zinc has suffered similar falls amid persistent concerns about global oversupply.

Copper is usually seen as an economic barometer, and its recent weakness suggests diminishing prospects for global growth.

Although longer-term we expect stronger demand for the red metal, we see more weakness in the near-term as Europe struggles to end its debt crisis.

Cap raising highlights problems

Kagara's problems ultimately led to a $25 million capital raising (completed today), which it said was to finalise the acquisition of the Einasleigh Copper Deposit at Mt. Garnet.

Einasleigh was bought from Copper Strike (CSE) for $16 million, as part of KZL’s push to ramp up production in the next five years.

The announcement of the raising was surprising considering it came less than three months after KZL unveiled its five year turnaround strategy.

The capital raising suggests KZL is facing cash problems, with the group in a precarious position as it looks to significantly increase exploration activities in North Queensland.

Worryingly, this leaves KZL vulnerable to continued declines in copper prices and any unforseen production delays.

Outlook

KZL has been hit hard in recent times due to operational issues at its mines.  A prolonged wet season led to production delays and write-downs at Mt. Garnet and Mungana, which was reflected in a massive loss for FY11.

Although KZL is to embark on a five year turnaround strategy, it has set itself lofty exploration and production goals. The group aims to produce 30,000tpa of copper by FY15 (FY11: 22,530t) and 71,000tpa of zinc by FY14 (FY11: 40,125t).

KZL’s immediate focus, however, is on ensuring it has enough cash to cover near-term development expenses.

The recently completed capital raising is a worrying sign, and suggests KZL has little room for error in a very uncertain global economy.

A worsening of Europe’s debt crisis could see copper prices come under further selling pressure, thus impacting KZL’s margins.

As a result, we feel there is further near-term weakness in store for KZL’s share price.

KZL’s woes have seen it being a major mover on the ASX, it has plummet more than 60% in 2011.

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Financials Stocks News: National Australia Bank (NAB)

National Australia Bank (ASX:NAB) is one of Australia’s “big four” banks, with a focus on regional banking, wealth management operations, international capital markets and institutional banking business. Brands within Australia include NAB and MLC, and the group is represented in New Zealand by Bank of New Zealand. In the UK the brands are Clydesdale Bank and Yorkshire Bank.

Financials Stock NAB held its AGM today, where it stated it expects a challenging 2012 as it faces a combination of volatile markets and subdued consumer and business sentiment.

CEO Mr Cameron Clyne said the group was committed to its strategic agenda, which drove a solid performance in 2011.

Mr Clyne also flagged increasing offshore funding costs which were placing further pressure on the bank’s margins.

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ASX Blue Chip News: Westpac Banking Corporation (WBC)

Westpac Banking Corporation (ASX:WBC) is Australia’s oldest bank operating a significant banking franchise in Australia and New Zealand.  WBC is considered an ASX Blue Chip Share. The company has balanced exposures to retail, corporate and institutional sectors.

Westpac has been one of the more acquisitive banks domestically with successful takeovers of Bank of Melbourne and Challenge Bank and Trust Bank in New Zealand. More recently WBC has aggressively expanded its wealth management activities with the acquisition of Rothschild Australia Asset Management, BT Funds Management and Hastings Funds Management.

Westpac today held their AGM where it warned that the European debt crisis will continue to impact the price and possibly the availably of funding to Australia’s banking sector.

CEO Mrs Gail Kelly said the outlook for the global economic outlook remained mixed with Australia not immune to these headwinds, with growth slowing and consumer and business spending cautious.

Mrs Kelly also hinted that WBC may not pass on future interest rate cuts to borrowers in full, citing the impact of higher funding costs on interest rate margins.

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ASX Materials Stocks News: Orica Ltd (ORI)

Orica Ltd (ASX:ORI) is a leading manufacturer of industrial & specialty chemicals, agricultural chemicals & fertilisers, commercial explosives & mining chemicals, paints & other consumer products in Australasia.

Orica has four broad business groups - Mining Services, Fertilisers, Chemicals and Consumer Products. ORI is a truly multinational company, with operations in over 40 countries. The company is listed on the Australian Stock Exchange and is part of the S&P/ASX 200.

Materials stock Orica announced today that it is resuming its Ammonium Nitrate production plant at Kooragang Island, near Newcastle.

The plant and several others have been closed since August, after thousands of litters of a dilute ammonium nitrate solution leaked from a storage facility.

Orica said re-start activities at the remaining facilities, are progressing.

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Australian Stock Report Launches the Speculative Report

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ASX Energy Shares News: Whitehaven Coal Limited (WHC)

Whitehaven Coal Limited (ASX:WHC) is a coal producer in the Gunnedah Basin. The Company is engaged in the development and operation of coal mines in New South Wales. Whitehaven operates five mines in the region: Narrabri (underground), Rocglen (open cut), Sunnyside (open cut), Tarrawonga (open cut) and Werris Creek (open cut). The company is listed on the Australian Stock Exchange and is part of the S&P/ASX 200.

Whitehaven Coal and Aston Resources have reached an agreement that will create the largest strictly coal producer in Australia.

The deal, in which WHC offers 1.89 of its shares for each of Astons share, will create a company with a market value of approximately $5.1 billion.

The merger which has been billed by the companies as merger of equals has the unanimous support of both Aston’s and Whitehaven’s boards.

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ASX Stocks to Watch: Aristocrat Leisure (ALL)

Aristocrat Leisure (ASX:ALL) develops, manufactures, and distributes gaming machines and systems in Australia, New Zealand, the Americas, Asia Pacific, South Africa and Europe.

ALL is the largest gaming machine company in Australia and the world's second-largest slot machine maker.

The company has been a basket case over the past few years amid weak consumer spending and adverse FX movements, as well as industry and operational problems.

Although ALL’s 1H11 profit was down sharply on-year, certain elements of the earnings release indicate the company is better placed to leverage off a cyclical rebound in its core markets - Australia and the US.

Gambling on weak 1H11

Aristocrat Leisure reported a 1H11 net profit of $24.9 million, which was down 49.5% from 1H10.  On a normalised basis, earnings were down 32% (1H10’s profit was inflated by a one-off gain on an asset sale). An interim dividend of 2.5 cents was declared.

The profit was impacted mostly by higher net interest costs, adverse FX movements and an 8.8% fall in revenue to $310.6 million.

Sales weakened amid tough trading conditions in North America - ALL’s biggest segment.  The division’s EBIT margin also contracted 5.6 basis points due to a higher proportion of second hand sales.

However the Australian operations performed solidly, with revenue there rising 5.5% on-year to $73.4 million.

The launch of the Viridian WS cabinets was well received by customers, driving average selling prices higher and improving margins despite competitive market conditions.

Encouraging outlook

Despite a tough half, ALL confirmed FY11 net profit guidance of 10% - 20% growth on FY10’s $77.2 million.

Although the North American division struggled, there was positive momentum towards the end of the half, with average daily fees increasing due to the rollout of new game titles.

Assuming a continuation of this trend, higher selling prices could be an important driver of earnings in the second half. Also, as legacy products are cycled out, ALL’s margins could see a turnaround due to a more favourable selling mix.

The operating environment is at least showing signs of improvement, with US consumer sentiment having shot higher in recent weeks.

Although market conditions were expected to remain challenging in Australia, Aristocrat Leisure nevertheless forecast a continuation of top line momentum, along with improved selling prices and margins.

Importantly, Aristocrat Leisure’s new product rollout makes it well placed to leverage off a cyclical rebound in both countries.

Market sentiment towards the stock has improved in recent months, and we believe there is further near-term upside to come.

ALL is a defiantly a stock to watch.

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ASX Energy Stocks News: AWE Ltd

AWE Limited (ASX:AWE) is a small oil and gas explorer and producer. The majority of its operations are located in Australia and New Zealand, though the company is becoming increasingly interested in international operations.

The company’s major projects are the onshore Casino gas field (Otway Basin, SA), Cliff Head project (Perth Basin, WA), the BassGas project (VIC & TAS), and now in the Perth Shale Gas Basin. AWE is listed on the Australian Stock Exchange and is a member of the S&P/ASX 200.

AWE today agreed to sell a stake of its Bass Basin gas project to Toyota Tsusho for a cash consideration of $80 million.

The company stating that the sale will inject cash into the balance sheet, and also reduce the risk-exposure to the capital expenditure requirements for the Bass Basin project.

AWE also announced a special $0.05 fully franked cash dividend.

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Financials Shares News: Lend Lease Corporation (LLC)

Lend Lease Corporation (ASX:LLC) is an international group involved in project design, construction and maintenance, property development and property funds management.

LLC operates in over 40 countries, with a significant presence in Australia, Asia, Europe, and the USA.  Lend Lease is listed on the Australian Stock Exchange and is a member of the ASX 200.

LLC today announced the sale of its 75% interest in the Chelmsford Meadow Unit Trust for approximately A$65 million.

The sale of the asset to was to Legal & General property.

CEO & Managing Director Steve McCann, said that the proceeds will be used to develop more significant projects that are currently in the pipeline.

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Seven Group Holdings (SVW) Takeover News

Seven Group Holdings (ASX:SVW) is a diversified operating and investment group listed on the Australian Stock Exchange. The operating business encompasses WesTrac, a global top five Caterpillar dealership. It also is a minority holder in Seven West media and major shareholder National Hire.

Seven Group Holdings Ltd has today finalised its takeover of equipment hire company National Hire.

Major shareholder Elph, which was a holder of 21.9% of National Hire stock, accepted Seven’s increased offer of $3.75 per share.

SVW can now compulsorily acquire the remainder of National Hire shares.

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Australian Stocks Advice: APN News & Media Limited (APN)

APN News and Media Limited (AXS:APN) is one of Australasia’s largest and fastest-growing multi media companies. Listed on the ASX in 1992, APN publishes 23 daily and over 100 non-daily newspapers across Australia and New Zealand. Importantly, APN’s newspapers service Australia’s fastest growing region of southern Queensland and northern New South Wales.

APN News and media held an investor Conference today, where it announced expected full year net profit will be between $75 million to $77 million, which is slightly below market consensus.

The company said in a statement that trading in the second half will be better than the first half, which was impacted by a series of natural disasters in Queensland and New Zealand.

CEO Brett Chenoweth said that management have remained vigilant and have exceeded the cost reduction targets announced in April.

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Australian Gold Shares to Buy: Saracen Mineral Holdings Ltd (SAR)

Saracen Mineral Holdings Ltd (ASX:SAR) is an Australian mid-tier gold producer based in WA.

The company bought its major assets off Sons of Gwalia back in 2006 - when the latter went bankrupt – and has done well to develop the assets and move from an explorer to a producer.

SAR’s key assets are located in the South Laverton mining district, 120km North-East of famed gold mining town Kalgoorlie, in Western Australia. This includes around 200 granted tenements and applications pending spread over 2,500 square kilometres.

Since purchasing these assets, SAR has spent money exploring the tenements and developing the projects to production.

The company completed a Definitive Feasibility Study on the South Laverton gold project in December 2008 and started producing gold in early 2010.

Ramping up

Having started production in April last year, SAR has achieved strong production quite quickly and established itself as an enticing small producer.

The company produced 111,163 ounces of gold in FY11, its first full year of production, at an average cash cost of $738 an ounce.

SAR has forecast production of around 125,000 ounces in FY12 at costs of around $700-$750 an ounce. So far FY12 is off to a solid start, with the company recently releasing its September quarter Activities Statement. Production of 31,790 ounces at cash cost of $730 was right in light with guidance.

By de-watering some of its flooded pits, SAR hopes to ramp up production to over 160,000 ounces a year by 2015.  Management has proven to be conservative and reliable so far, offering some reassurance in what is a speculative sector.

Saracen Mineral Holdings has managed significant upgrades to its gold resources and reserves, presently standing at around 3,300,000oz and 880,000oz respectively.  Most of the reserves are open-pit, which allows for easier and cheaper mining.

The sizeable resources and potential underground mining pave the way for a long mine life, while the company has extensive exploration potential to upgrade this further.

The hunt for Red October

SAR’s has planned to spend $35 million on exploration activities in FY12, a sizeable budget given the size of the company.

The company recently completed a placement, raising $50.2 million and helping the company to end the September quarter with $60.3 million in net cash and no debt. A share purchase plan and subsequent placement have raised a further $15 million since.

Together with cash generated from production (almost $10 million last quarter), SAR will not need to raise significant fresh capital to fund this.

Much of SAR’s exploration efforts will be in exploring its Red October project. The company expects to have completed dewatering the pits shortly, to be followed by underground development work.

Previous drilling results have confirmed the continuity of ore body at Red October and further exploration efforts could lead to significant resource upgrades relatively quickly.

Production from Red October is expected to commence in FY12, but potential major exploration success could provide a major share catalyst before then.

Outlook

SAR only started gold production just over 18 months ago but is already generating output of around 125,000 ounces a year.

Incremental production upgrades could come in the next few years, but the significant upside potential comes from the development of its Red October operation.

While SAR offers significant exploration upside, its existing production provides extra protection, and suggests that the market could re-rate the stock and push SAR shares much higher than current levels.

SAR is a defiantly a stock to watch.

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ASX Energy Stocks News: Oil Search (OSH)

Oil Search (ASX:OSH) is an oil and gas exploration and development company that has been operating in Papua New Guinea (PNG) since 1929 and is listed on the S&P/ASX 200.

OSH now explores, develops and produces oil and gas in Papua New Guinea and Australia, not to mention Yemen, Libya, Iraq and Tunisia.

Oil Search said the large gas export venture in Papua New Guinea with Exxon Mobil has had a budget increase of US$700 million.

The company announced today that the increase was due to the impact of the high Australian dollar.

Oil Search said that it has ample liquidity to increase its equity contribution to the project.

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Australian Stocks Dividend News: Metcash Ltd (MTS)

Metcash Limited (ASX:MTS) is a leading marketing and distribution company operating in the food and other fast moving consumer goods categories. MTS operates via three business units: IGA Distribution (retail), Campbells Cash & Carry (wholesale) and Australian Liquor Marketers (ALM; liquor wholesale).

Metcash today released its first half results, which showed a 14% decrease in 1H profit to $94.4 million.

The company said the decrease was due to grocery price deflation, economic uncertainty and a cut in margins due to increased competition.

Metcash said it expects low-to-mid single digit earnings growth for the full year.

MTS will pay an interim dividend of $0.115.

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ASX Industrials Shares News: UGL Limited (UGL)

UGL Limited (formerly known as United Group), (ASX:UGL) is an engineering and services company providing industrial maintenance, manufacturing, engineering, transport facilities management and corporate real estate services to blue chip companies and governments throughout Australia, New Zealand, Asia, US and the UK.

Industrials stock UGL, today announced that it has successfully secured approximately $200 million in new contracts, while renewing several old contracts.

Managing Director and CEO, Richard Leupen said that strong momentum of contract wins is consistent with UGL’s strategy of maintaining and growing a stable base of recurring revenue.

Mr Leupen also added the business remains healthy and is well positioned to support the growth outlook within the business.

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Australia Shares News: Qantas Airways (QAN)

Qantas Airways (ASX:QAN) operates domestic and international airlines under the widely known Flying Kangaroo banner. These airline operations are complemented by extensive holiday travel activities, catering facilities for QAN services and external customers, ground handling of baggage and freight, and engineering and maintenance services.

Qantas updated the stock market today on its expected profit.   The company guided for 1H FY12 profit of $140-$190 million, from $417 million a year earlier.

Qantas said that the recent industrial action will cost approximately $194 million for the first half.

A company spokesman has also denied media speculation that it has shelved a planned Asia-based premium carrier.

Qantas’ passenger numbers for October showed a 1.8% decline compared to the previous year.

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Shares to Buy: Nexus Energy (NXS)

Nexus Energy (ASX:NXS) is small cap emerging oil and gas producer, with operations focused on the Gippsland Basin, offshore Victoria and the Browse Basin, offshore Western Australia.

In 2009, NXS transitioned from explorer to producer with the start-up of the Longtom gas project.

The Longtom project was plagued by production problems in late 2010 due to the detection of mercury in its gas.  However those issues have since been resolved and the project has been delivering record production of late.

A lot of interest currently surrounds NXS’s 85% stake in the Crux liquids project (15% Osaka Gas-owned), which is Shell-operated and has a reserve estimate of around 75 million barrels of oil.

With liquefied natural gas (LNG) seeing global demand as an alternative fuel source, NXS and its peers are in good standing owing to the LNG boom and recovering commodities market.

The company is in the midst of securing financing for its share of Crux’s development, and a final investment decision (FID) is expected by the end of the year.

The Crux of the matter

Nexus is looking to commercialise the Crux project, but before a FID can be reached, it must secure financing.  The group is currently trying to obtain up to US$1 billion in financing, with the lenders currently conducting due diligence.

Encouragingly, NXS has also identified a potential JV partner for the project, and is expecting a binding proposal in the next few weeks.

NXS’ proposed 35% sell-down of its equity stake in the project, combined with the potential US$1 billion in debt financing, are signs that the group is on track achieve the FID by the proposed target date.

The economics of the project have already been confirmed under varying capex and schedule sensitivities.  Construction of the project is expected to total around $1.78 billion.

Therefore, achieving FID by the target date will help alleviate concerns over NXS’ ability to fund the project’s developments costs.

Whilst the stock has rallied ahead of the FID, we believe the market has yet to fully price in the huge revenue potential of the project (assuming a positive FID).

The Longtom and short of it

In late October, NXS reported Longtom gas production of 6.4 petajoules (PJ), which was 7.4% higher than the previous quarter.

Saleable gas production totaled 6.2 PJ, which was up 6.7% on June quarter output. This drove revenue up from $27 million to $29 million in the same period.

The increase in Longtom output has continued the turnaround in this asset, which faced production issues early in the financial year due to mercury detection in the delivered gas.

The installation of mercury removal equipment has so far allowed Nexus Energy to meet gas nominations under its contract with customer, Santos.

Future growth will come from the exploration of Longtom South, which is a prospect located 4km south of Longtom.

Given the proximity of the two fields, it wouldn’t cost NXS as much to develop Longtom South. If gas is ultimately discovered, it will provide another source of cash flow, thus increasing the company’s value.

Outlook

NXS has had a fantastic turnaround in the past few months, as anticipation builds ahead of its proposed FID by the end of the year.

The company is in the midst of securing financing for the project and is also in negotiations to sell down part of its stake.

That’s not to say either of these will definitely happen, as there is always the chance of NXS failing to obtain the required funding.

However, NXS hasn’t indicated any issues with the FID process thus far.  Therefore we believe the potential payoff from taking a position in Nexus Energy is worth the risk.

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Australian Stocks News: David Jones (DJS)

David Jones (ASX:DJS) is Australia’s second-largest department store retailer and fifth largest retailing company overall. The company operates a chain of over 35 retail stores and mainly sells upmarket brands of clothing, accessories and homewares. The stores also offer a wide product range of David Jones branded merchandise.

ASX 200 listed stock DJS today has reaffirmed its guidance for a substantial fall in first half year profit.

The company expects its net profit for the half year to December 31 to fall by 15-20% on last year’s first half profit of $105.7 million

David Jones also reported first quarter 2012 sales of $414.3 million, which was down 11.2% compared to the previous corresponding quarter.

CEO Paul Zahra said that trading seems to have improved in October and November 2011, but continues to be negative on last year due to a tough operating environment.

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ASX Industrials News: NRW Holdings (NWH)

NRW Holdings (ASX:NWH) is a provider of civil contracting, mining services and equipment to the resources industry.

A leader in the Western Australia resources sector, NWH provides a number of services, most notably civil contracting services including rail formation, bulk earthworks, road and tunnel construction, and mining services, including earth moving, waste stripping, ore haulage and related ancillary services.

NRW Holdings advised the market that based on current management accounts, net profit for half year ending 31 December 2011 is anticipated to be in the range of $41-$43 million.

This profit forecast would represent a big increase of approximately 100% on the prior corresponding period.

NRW said that the second period of FY12 will be similar to the first period of FY12, subject to any unforeseen events.

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ASX 200 Materials Shares News: BlueScope Steel Ltd (BSL)

BlueScope Steel Ltd (ASX:BSL) is a major steel company in Australia and New Zealand, supplying flat steel products to the building, construction, manufacturing, automotive and packaging industries.

ASX 200 listed stock BlueScope has today launched a $600 million share issue.

The new shares will be offered at $0.40, which represents a 34% discount to the most recent close.

The money will be used to repay existing debt.

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Murchison Metals (MMX) Trading Halt News

Murchison Metals (ASX:MMX) asked and was granted a trading halt from the Australian Stock Exchange today.

MMX stated it was in advanced talks on the possible sale of its Oakajee port and rail projects and also its entire stake in the Jack Hills iron-ore development in WA.

Materials Stock, Murchison said it hopes to make an announcement before the commencement of trading on Wednesday.

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ASX Stocks to Watch News: Myer Holdings (MYR)

Myer Holdings (ASX:MYR) is one of Australia’s largest department store groups targeting a wide spectrum of consumers.

Myer has a national network of stores in Australia. It retails designer, national, and international fashion and apparel for men, women and children.

MYR focuses on its retail presence and execution, and also operates a consumer loyalty program.

A cloudy macroeconomic picture has been a major thorn for MYR and its retail peers in recent times.

However, the RBA’s recent rate cut could be the first sign of a near-term turnaround in the company’s fortunes.

Although MYR’s first quarter sales were weak, we see a pickup in momentum heading into 2012, which makes the stock an attractive proposition around current levels.

Confidence is key

MYR’s troubles have stemmed largely from concerns about the Australian economy, specifically the deterioration in consumer sentiment.

Consumer sentiment has remained weak for much of the past year amid global market volatility and the RBA’s hawkish stance on monetary policy.

This has prompted consumers to save more and cut back on discretionary spending, which has hit the sales of retailers such as MYR and David Jones.

However, things have improved in recent weeks, particularly with the RBA’s recent dovishness translating into an interest rate cut this month.

Consumer sentiment shot up 6.3% this month in response to the rate cut as well as the potential for further easing.

When combined with the Aussie dollar’s recent decline, the economic conditions are ripe for a near-term pickup in domestic consumer spending. This should come as a welcome relief for MYR’s sales heading into 2012.

Deflating trading conditions

Yesterday MYR reported a 3.5% fall in 1Q12 sales from a year earlier to $$681.million. On a like-for-like basis, sales were down 5.1%.

The group experienced a tough trading environment during the quarter, but nevertheless said sales were tracking expectations.  It also reaffirmed its full year forecast for flat sales and a 10% fall in net profit.

This came as a relief to the market, which had feared a worse result given the recent global economic turbulence.

The sales result came on the back of a tough FY11, in which net profit fell 3.6% to $162.7 million. Sales were also down for the year amid challenging retail conditions.

A final dividend of 11.5 cents was declared, bringing the full year dividend to 22.5 cents. Maintaining this dividend in FY12 would result in a robust yield ~9%, but even if the group cuts its dividend by 10% (20.25 cents), it would still deliver a healthy yield of ~8%.

Just how valuable?

Despite MYR’s weak 1Q12, we expect an improvement in sales heading into Christmas as consumers take advantage of the recent rate cut.

Unless Europe’s debt crisis intensifies, the rate cut may also prompt consumers to release pent up demand in 2012, which we see as underpinning a sales recovery for MYR.

Heading into FY13, we see a rebound in both earnings and sales for MYR as the Australian economy gathers steam due to the mining boom.

Myer is currently trading at a deep discount to its rivals, given the poor earnings expectation for FY12.  The group’s current P/E of just 8.9x represents a ~30% discount to its industry average.

However we believe the discount is too deep given the company’s relatively stronger leverage to improving consumer sentiment.

Adjusting the discount to 15%, and using a blended EPS spread over FY12, FY13 and FY14, our fundamental-based price target for MYR is $2.77, which represents good value around current levels.

Outlook

Aussie retailers have been out of favour for a while due to cyclical issues (tough economy) and more serious structural problems (strong AUD and online competition).

Whilst we are cautious on retailers as whole due to those structural issues, there is finally some value in the sector given the potential for an improvement in trading conditions.

The RBA’s recent rate cut could prompt consumers to release pent-up demand, which we believe will benefit retailers with strong operational leverage such as MYR.

Although the group’s first quarter sales were weak, we see a pickup in momentum heading into 2012.

Adjusting MYR’s deep discount to its peers, we have a price target of $2.77, which offers decent value at the current share price, particularly when factoring the healthy dividend yield.

If MYR keeps picking up momentum it will be a stock to watch right into the new year.

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ASX Materials Sector News: BHP Billiton (BHP)

BHP Billiton (ASX:BHP)  has a global portfolio of high-quality assets, with more than 100 operations in 25 countries.

BHP held its AGM today, with CEO Marius Kloppers outlining challenges for the company on the back of economic uncertainty and equity market volatility.

Mr Kloppers told the AGM that despite short-term challengers the long-term outlook remains unchanged.

BHP’s strategy remains to invest through the economic cycle, with a plan to invest US$80 billion over the next five years on its mining and petroleum assets.

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ASX 200 Shares News: Incitec Pivot Limited (IPL)

Incitec Pivot Limited (ASX:IPL) produces and distributes fertilisers and explosives. IPL has operations throughout the United States, Canada, Mexico and Australia.

ASX 200 stock Incitec Pivot has delivered a strong annual profit, slightly beating market forecast.

Incitec recorded a 13% lift in net profit, which it contributes to the second half rise in fertiliser prices and demand for explosives.

The company declared an 8.2 cent dividend, compared to 6 cents the same time last year.

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Gold Shares to Buy: Azimuth Resources (AZH)

Azimuth Resources (ASX:AZH) is a junior gold and uranium explorer, with projects based in Guyana and South America.

The group holds approximately 8000km² of gold tenements in Guyana, and its main asset is the West Omai gold project, which it is currently exploring.

AZH’s other interests are the East Omai gold project, the Amakura uranium project, and the Pandanus West uranium project in Australia.

The company is an exciting prospect that has produced encouraging drilling results at West Omai. There is growing hope that the group’s maiden resource discovery will be significant enough to help underpin the start of production.

Go Guyana

The West Omai project is AZH’s flagship project, and which may contain the discovery of significant gold resources.

West Omai is part of the same corridor that hosts the Omai gold mine, which is the biggest gold mine in South America, having so far produced 3.7 million ounces of gold.

Azimuth Resources is expected to release a maiden resource estimate from the project sometime this quarter.

Given West Omai’s proximity to the Omai gold mine and the encouraging drilling results thus far, a significant resource discovery could be on the cards.

Gold shoots higher

Being an explorer, AZH is tightly leveraged to gold prices.

Although gold was sold-off heavily in September, the precious metal has bounced back strongly in recent weeks amid global economic uncertainty.

The spot price of gold is back above US$1750 an ounce after crashing to just above US$1500 in late September.

Europe’s debt crisis and the potential for another round of bond purchases by the Fed is likely to lure more nervous investors back into gold, which is likely to support prices further.

Such an outcome would be very beneficial for AZH.

Balanced out

AZH completed a $19.4 million capital raising on 31 October, giving it the balance sheet strength to pursue its Guyana exploration program well into 2012.

The raising has come at an ideal time for AZH, which has smartly taken advantage of its strong share price to shore up its finances.

The group also announced plans in April 2011 to list on the Toronto Stock Exchange.

The listing is expected to boost AZH’s global profile, which will come in handy when the group looks at future capital raisings.

Outlook

AZH an exciting prospect that has produced encouraging drilling results at its West Omai project.

The group is expected to release a maiden resource estimate from the project sometime this quarter, and there is hope the estimate will be significant enough to help underpin the start of production.

AZH’s fortunes are closely linked to the price of gold, and with the precious metal on track for continued gains, we believe this will translate into continued strength for AZH’s share price.

This is one of the hot stocks of the year, rising from 25 cent in June to currently be trading beyond 50 cents.

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ASX Industrials Shares News: Asciano (AIO)

Asciano (ASX:AIO) is transport infrastructure and operations company formed from a de-merger from Toll Holdings in June 2007 and joined the ASX 200 soon after.

Today, Asciano released its FY12 September quarter update, saying that it has performed well in uncertain economic times.

However CEO John Mullen did warn global economic conditions were difficult and unpredictable at present, and refrained from releasing specific guidance for the remainder of the FY12.

AIO reported coal volumes fell 9% in the September quarter, amid reduced export demand and delivery issues.

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Financial Shares News: Lend Lease Corporation (LLC)

Lend Lease Corporation (ASX:LLC) is an international group involved in project design, construction and maintenance, property development and property funds management. LLC operates in over 40 countries, with a significant presence in Australia, Asia, Europe, USA and is listed on the Australian Stock Market.

Today Lend Lease’s CEO Steve McCann told the company’s AGM that the outlook for Australia across most of the company’s key sectors remains positive, but weak sentiment in overseas market could impact the business.

Mr McCann did believe that LLC is well placed to deliver growth for security-holders.

Lend Lease also outlined an additional $1.2 billion in infrastructure work in the short term.

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Blue Chip Stocks News: Westfield Group (WDC)

Westfield Group (ASX:WDC)  is the largest retail property group in the world by equity market capitalisation. It has investment interests in 126 shopping centres in Australia, New Zealand and the United States.

Westfield, which is among the blue chip stocks, has released its 3^rd quarter operating update for the nine months to 30 September 2011.

WDC reaffirmed its full year earnings forecast, saying it is seeing growth in all of its markets.

Current full year forecast for distribution per security is 48.4 cents, whilst operational segment earnings are expected to be 74.6 cents per security.

Westfield did outline their new development projects for the next few years with $1.25 Billion to be spent in 2012 and a further $1.5 Billion in 2013.

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ASX Hot Stocks Tips: Computershare (CPU)

Computershare (ASX: CPU) provides technology systems and services for the international securities industry. Its core services comprise the provision of shareholder registry services, employee share plans and associated services such as printing and share registry analytical services.

Computershare’s US$550 million takeover of Bank of New York Mellon Corp’s investor service business has been approved by U.S regulators.

This deal expected to be completed around the 1^st of January and will make CPU the largest provider of share-registry services in the world.

Computershare is one of the hot stocks of the day up around 15%.

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ASX Shares to Buy News: WorleyParsons (WOR)

WorleyParsons (ASX:WOR) provides professional engineering and management services to the energy, resource and complex process industries.

WOR offers a broad range of services, from feasibility studies to design and project services, and is exposed to a number of sectors.

The group is a leader in its industry and has established long-term relationships with a number of companies, including some blue chip stocks.

Despite facing obstacles in FY11, WOR was able to grow its profit and revenue, with the Hydrocarbons business driving the result.

Moreover, WOR is ideally placed for the future, as the lure of higher energy prices is likely to drive demand for its services from the bigger oil companies.

FY11 results highlight underlying strength

On 24 August, WOR reported a 25% lift in FY11 net profit to $364.2 million. On an underlying basis, profit was up 2.5% to $298.5 million, matching previous guidance.

A final dividend of 50 cents was declared, bringing the full year dividend to 86 cents per share.

It was a solid result considering WOR faced a number of headwinds such as the strengthening AUD, Middle East instability and natural disasters.

The result didn’t really reflect the strength of the underlying business. Revenue grew 19% on-year to $5.9 billion, driving by a strong performance in the Hydrocarbons business.

The group was also in financially strong shape, with a gearing ratio of just 22% and operating cash flow growth of 5.1% in FY11. Moreover it had more than 50% in untapped debt facilities.

Taken together, this tells us WOR has significant firepower to expand its business –organically and/or through M&A activity.

The group forecast good underlying profit growth in FY12, continuing the momentum displayed in the 2H11. The guidance was reaffirmed at WOR’s AGM last week.

Hyper about Hydrocarbons

The majority of WOR’s earnings are in the Hydrocarbons division. Hydrocarbons are organic compounds, found mostly in crude oil.

WOR’s leverage to the energy market is a key attraction, particularly as demand for oil and gas is expected to strength in coming years due to emerging market growth.

The recent market turbulence has raised questions about faltering energy demand in the developed economies, which has been a factor behind WorleyParson’s recent share price weakness.

However we believe these fears are overblown given the oil supply/demand imbalance (dwindling oil supplies vs. growing energy demand) is only expected to worsen in coming years.

The lure of energy price appreciation at a time of growing demand is likely to see the big energy companies continue their ramp up of capex spending, putting WOR in an ideal position to accelerate its contract win rate.

LNG is the future

The big oil companies have also recognized that the world is moving towards more unconventional sources of energy such as LNG.

There are number of massive projects being undertaken throughout Australia, and WOR has had a hand in some of the key ones such as Pluto and more recently, Wheatstone.

WOR won a $235 million contract from Chevron for the construction of management services at the Wheatstone Project.

WOR’s experience in developing LNG projects, coupled with the established relationships it has with its blue-chip clients, makes it ideally placed to benefit from this increased focus on alternative energy.

Outlook

As the global growth engine continues to shift from developed economies to the developing regions, there will be increased demand for commodities.

As mining companies look to meet this demand, there is going to be a significant increase in capex activities over the coming years.

This will strengthen the market for WOR’s services, providing it with plenty of growth opportunities, especially in the hydrocarbons space.

WOR is in sound financial position and is expected to continue the positive earnings momentum into FY12.

The long-term relationships WOR has fostered with its blue-chip clients is likely to yield considerable benefits for the company, particularly as miners look to capitalize on rising commodity prices as well as the world’s shift to alternative energy sources.

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ASX 200 Shares Update: News Corporation (NWS)

News Corporation (ASX:NWS) is a diversified media conglomerate with interests in all geographic locations around the world, and in all facets of the media. The principle activities of the company include printing and publishing, books and magazines, television broadcasting and production including both free to air and pay television, and film production and distributions.

Today, ASX 200 listed News Corp reported 1Q12 revenue of US$7.96 billion, up  7% from  a year ago. However net profit for the quarter came in at US$738 million, down from US$775 in the previous quarter.

The fall in earnings was partially due to the $68 million, or 38%, decrease of operating income in the publishing segment. This reflected the impact from the closure of The News of World in the U.K.

The Cable Network Programming, Filmed Entertainment and Direct Broadcast Satellite Television segments all recorded double digit revenue increases compared to the prior corresponding quarter.

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ASX Materials Stocks News: Onesteel Ltd (OST)

Onesteel Ltd (ASX:OST) is Australia’s premier manufacturer of steel and finished steel products and is also a leading metal distributor.

OneSteel revised downward its earnings guidance for the 1H12, saying it will provide a trading update at its Annual General Meeting (AGM) on the 21^st of November 2011.

OST will revise down its earnings due to the collapse of iron ore prices, which are now around 30% below their the levels 3 weeks ago, and also the increase in the Australian dollar over the same period.

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Hot Shares to Buy: Mineral Deposits (MDL)

Mineral Deposits (ASX:MDL) is an exploration and development company, focussing primarily on the Grande Cote Minerals Sands Project in Senegal.

Grande Cote is a world class ore body that extends more than 100 kilometres and boasts high quality zircon and ilmenite.

Growing demand for mineral sands means production from Grande Cote is likely to occur in a period of rising prices, boding well for future profitability.

The market has acknowledged this, and as a result MDL has been one of the hot stocks in recent times.

Although capex costs at the project are expected to be significant, MDL’s cash balance and JV with Eramet puts it in a good position to meet funding requirements.

Magnificent Mineral Sands

The mineral sands industry is expected to boom in coming years due to a widening supply deficit.

Global zircon supply is forecast to shrink over the next decade, which will coincide with soaring demand from high growth countries such as China.

Zircon demand is driven predominantly by its use in ceramics. With China modernising its economy, the demand for ceramics, such as tiles, is expected to surge.

This is likely to drive significant zircon price growth, which will benefit MDL as it begins production in 2013.

The supply deficit will take time to narrow given the more than seven years required to bring projects from exploration to commissioning.

Titanium is anticipated to follow a similar path to zircon, in that demand is likely to be fuelled from its use in paint, plastics and paper – key ingredients for China’s growing economy.

Tizir is born

On 28 July the group formed a 50/50 JV with French-based miner, Eramet, known as Tizir Limited.

Under the JV, Mineral Deposits will contribute its 90% interest in Grande Cote (Senegal’s government owns the other 10%), with Eramet contributing its Tyssedal titanium and iron plant in Norway, along with $30 million in cash.

The JV was crucial for MDL as it secures off-take for the majority of Grande Cote’s ilmenite. The ilmenite will be used in the production of titanium feedstock at the Tyssedal plant.

The agreement also secures additional titanium supply for Tyssedal, giving it the capacity to meet growing demand from pigment producers.

Therefore it appears the JV is a win/win for both companies.

Grande Cote is grand

The Grande Cote project is strategically placed in Senegal, located not too far from the Dakar coast. This reduces the time it will take to transport the minerals from the mine separation plant to the port for shipment.

The lack of significant vegetation and overburden also allows for an efficient processing of the mined ore.

Thus when production begins MDL will be operating towards the lower end of its cost curve, giving it a significant competitive advantage.

Grande Cote has the potential to be a Tier 1 asset, with an operating mine life of 25+ years, and expected annual production of 85,000 tonnes of zircon and 575,000 tonnes of ilmenite.

These output estimates will amount to approximately 7% of global supply, putting MDL on track to become one of the world’s bigger producers.

Cash is king

MDL is in sound financial shape, having secured US$136.2 million in a capital raising in June. The raising brought the group’s cash balance at the end of June to US$173.3 million.

Moreover, the company has no external borrowings.

Although Grande Cote requires approximately US$516 million in capex requirements, Mineral Deposits' array of financing options, including the contribution from Eramet, will help ensure sufficient funding for the project.

Outlook

Mineral sands producers stand to reap significant benefits from China’s voracious demand for resources.

The supply deficit is expected to linger for a while yet, putting MDL in line to achieve major price increases at the same time it begins production.

Grande Cote appears to be a long-life, low-cost asset for MDL, thus giving it a competitive advantage in the mineral sands industry.

Importantly, the company is in sound shape with cash in the bank, no external debt, and a JV with Eramet that has secured off-take for its ilmenite.

Therefore the future appears bright for MDL, and it will be one of the stocks to watch in coming months.

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Australian Shares News: TEN Network Holdings

Ten Network Holdings Limited (ASX:TEN). TEN ‘s FY11 profit slid 90.5% to $14.2 million, driven by an $85.4 million impairment charge that related to staff redundancy costs.

Underlying earnings slumped 24% to $74.1 million, with revenue rising a paltry 1% to $1 billion. A final dividend of 5.25 cents was declared.

However the group said it will keep costs flat in FY12 and that a planned programming overhaul will help it better compete with its rivals.

The encouraging outlook has lit a rocket under TEN shares, making them among the best performing in the Australian stock market.

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Financial Shares News: Insurance Australia Group (IAG)

Insurance Australia Group (ASX:IAG) is one of the largest general insurers in Australia and New Zealand, providing personal and commercial insurance policies under the brands NRMA Insurance, SGIO, SGIC, CGU, Swann Insurance, State Insurance and NZI.

IAG has been among the shares to sell over the past 12 months due to the natural disasters in Australia and New Zealand.

Today IAG reaffirmed its FY12 insurance margin of 10% - 12%, saying it has been encouraged by the gross written premium growth thus far.

Gross written premium was expected to grow 6% - 9% in the FY12.

The group said it was well capitalised and that it would undertake a NZ$150 million bond offering for general corporate purposes.

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ASX Health Care Stocks News: ResMed (RMD)

ResMed (ASX:RMD) is a leading developer, manufacturer and distributor of medical equipment for treating, diagnosing, and managing sleep-disordered breathing and other respiratory disorders such as sleep apnoea.

Today RMD announced a 12% increase in 1Q11 revenue to $314.8 million. However net profit was down 11% to $50.5 million.

Although the result was affected by adverse exchange rate movements, RMD was also hit by a weak 1% increase in flow generator sales.

The sales result missed analyst estimates, causing it to become the worst performer in today’s share market action.

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Blue Chip Stocks News: BHP Billiton (BHP)

BHP Billiton (ASX:BHP) is the world’s largest diversified resources company, with a global portfolio of high quality assets and more than 100 operations in 25 countries.

It is the biggest listed company on the Australian share market and is widely considered among the blue chip stocks.

It is an industry leader in most of the major commodities markets, including aluminium, coking and thermal coal, copper, manganese, iron ore, uranium, nickel, silver and titanium. On top of this, BHP has sizeable interests in oil, gas, natural gas and diamonds.

Today, BHP reported a 28% on-year increase in 1Q11 iron ore output. The increase was driven by greater system capability of the group’s WA rail infrastructure.

Petroleum production increased 19% in the same period, with BHP’s acquisition of the Fayetteville and Petrohawk shale businesses helping the result.

However copper output declined 24% over the year amid strikes and lower ore grades at the Escondida mine in Chile.

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Australian Shares News: Qantas Airways Limited (QAN)

Qantas Airways Limited (ASX:QAN) is one of the world’s leading airlines and an Australian icon.

On top of its standard domestic and international flights, QAN also owns budget airline Jetstar, regional airline QantasLink and related travel businesses Qantas Flight Catering.

Although some still consider QAN as a blue chip stock, its huge share price fall since the GFC has taken away a lot of its lustre.

Today, QAN said it would plan to ground additional aircraft due to the ongoing strikes.

The group will ground two Boeing 767s, resulting in the loss of 20,000 seats.  The total hit to capacity has now reached 88,000 seats.

Qantas has not ruled further grounding of aircraft in response to the strikes.

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Australian Mining Stocks News: Rio Tinto (RIO)

Rio Tinto (ASX:RIO) is one of the world’s largest miners, mining and processing a wide range of metals and minerals including all the key base metals, precious metals, diamonds, iron ore and energy products.

The miner is widely considered among the blue chip stocks, and it is also among the biggest companies in the Australian share market.

Today, RIO announced the sale of up to 13 assets as it looks to restructure its aluminium division.

The sale would include Australian and European based refineries and smelters, with the sale likely to happen when the economic picture improves.

The sale would also allow RIO to focus on its tier one assets in an effort to drive improvements at the aluminium division.

RIO’s interest in six of the assets would be transferred to a new business, called Pacific Aluminium.

The other seven assets will continue to be managed by Rio Tinto Alcan until they are sold.

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Stock of the Week: Mesoblast (MSB)

Mesoblast (ASX:MSB) is a world leader in the development, manufacture and commercialisation of biologic products in the broad field of regenerative medicine.

MSB has the worldwide exclusive rights to a series of patents and technologies developed over more than 10 years relating to the identification, extraction, culture and uses of adult Mesenchymal Precursor Cells (MPCs).

MSB’s stock has been one of the hot stocks since the start of the year on market excitement over the therapeutic power of MPCs.

A unique business

The commercialisation of MPCs allows adult stem cells to be extracted from the bone marrow of donors, grown into therapeutic quantities and administered to non-related patients.

MSB’s lead products will target cardiovascular conditions, diabetes, inflammatory conditions of lungs and joints, eye diseases, bone marrow cancers, bone fractures, cartilage degeneration and musculoskeletal conditions.

The company aims to generate a series of high margin, off-the-shelf adult stem cell products that are obtained from a single donor, commercially expanded and frozen, and subsequently used in potentially thousands of unrelated, or allogeneic, recipients at the time and place of need.

Bone marrow approval

Mesoblast recently received approval from US authorities to begin an advanced trial of a treatment that could boost the number of bone marrow transplants for patients who cannot find a matched donor.

Following the approval, MSB has commenced the Phase III trial for bone marrow regeneration in patients with blood cancers.

MSB aims to produce a product that can be used in bone marrow transplants where a perfectly matched donor cannot be found.

Hearty hopes

Another key driver for MSB will be the results of its Phase II congestive heart failure trials in November.

Clinical results have thus far been encouraging, and if the full results turn out to be positive, MSB is likely to request a Phase III trial from the US Food and Drug Administration (FDA).

We believe a positive Phase II result will help deliver a significant jolt to MSB’s share price, as it moves the group closer to receiving regulatory approval to market its product.

Moreover, given the large number of reported heart problems in the US, Phase III approval can open up a huge market for MSB.

The Lonza and short of it

On 27 September, MSB announced an alliance with Swiss-based Lonza Group for the clinical and commercial production of its MPC product.

Under the deal, Lonza will supply MSB’s product requirements, in return for MSB having exclusive access to Lonza’s Cell Therapy facilities in Singapore.

The alliance is a critical plank in Mewsoblast’s strategy to market its product, as it creates certainty in the ability of the group to manufacture its MPCs.

Another interesting aspect of the alliance was Lonza using its intellectual property to help lower MSB’s manufacturing costs.

This would be in keeping with MSB’s aims to generate higher margin products, and would also provide it with the flexibility to develop new technologies.

Looking ahead

Whilst market excitement grows surrounding the therapeutic potential of MPCs, MSB has turned heads with its unique product innovation.

With regulatory approvals continuing to roll in and a global manufacturing alliance locked in, MSB is in a good position to bring its MPC technology to market.

The bone marrow product could be the company’s first revenue generating biologic therapy in the US and Europe.

MSB has huge revenue potential and exclusive rights to a series of patents and technologies relating to MPCs.

Furthermore, a successful outcome for MSB’s Phase II congestive heart failure trial could make MSB one of the stocks to watch in coming weeks.

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Australian Financials Shares News: Bank of Queensland (BOQ)

Bank of Queensland (ASX:BOQ) was established way back in 1874 and operates mainly in its home state of Queensland, with operations covering retail financial services and business banking.

It has been one of the shares to sell in recent times due to the macroeconomic headwinds plaguing the financial sector.

Today BOQ reported an FY11 net profit of $158.7 million, down 13% on-year.  The result was impacted by higher bad debts and subdued credit growth.

Underlying profit rose 18% on-year to $447.4 million, helped by a disciplined expense control.  BOQ’s cost-to-income ratio fell 1% to 44.5%.

The group was hit by funding cost pressures in the 2H, but still grew its full year net interest margin by 5 basis points to 1.65%.

BOQ noted FY12 would be turnaround year for the group and that it was confident in the underlyin earnings momentum.

A final dividend of 28 cents was declared.

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Shares to Buy News: Tabcorp (TAH)

Tabcorp (ASX:TAH) is a diversified entertainment group specialising in gambling and a variety of other entertainment products.

TAH has reported a 2.7% on-year rise in 1Q12 revenue to $759.4 million.

All of TAH’s divisions recorded growth in the quarter, reflecting the group’s well executed investments in those businesses.

TAH has been one of the shares to buy today on the back of the update.

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