ASX Trading Halt News Lynas Corporation (LYC)

Lynas Corporation (LYC) is involved in the exploration and development of rare earth minerals.

LYC owns the richest deposit of Rare Earths in the world at Mt Weld (Western Australia), 35km south of Laverton in Western Australia.

LYC was one of the hot stocks in 2010 after China took steps to curb its export of rare earths minerals.

Lynas remained in a trading halt yesterday after announcing a planned capital raising.

No details were given on the size of the capital raising, which will likely be used to boost production at its Mt Weld site.

LYC was also preparing to announce a strategic agreement but did not elaborate on the details.

Keep updated with FREE ASX Trading Halt News and Lynas Corporation announcements, click here.

Global Trading Markets Summary March 31 2011

Share Buy Back News JB Hifi (JBH)

JB Hifi (JBH) stores offer the world’s leading brands of hi-fi, speakers, televisions, DVDs, cameras, car sound, home theatre, computers and portable audio and specialist hi-fi products.

JBH is Australasia’s fastest growing and largest retailer of home entertainment, and boasts one of the best low-cost business models in the retail sector.

On 29 March, JBH announced a $170 million share off-market share buy back, representing up to 10% of its share issue.

The share buy back will be funded through JBH’s senior debt facility.  In addition, JBH announced a restructuring charge related to its Clive Anthony’s business.

Following a $24.8 million write-down, JBH expects FY10 net profit to be between $108.5 million and $113.5 million.

This compares to previous guidance of a net profit between $134 million - $139 million.

JBH was one of the market’s hot shares on the day of the announcement, shooting up over 7%.

Keep updated with FREE JB Hifi and Share Buy Back advice, click here.

Australian Trading Commentary March 30 2011

ASX Top 200 News Nufarm (NUF)

Nufarm (NUF) produces agricultural fertilisers and chemicals used for crop protection internationally.

The company is also actively involved in the marketing and sale of branded, off-patent crop protection and seeds treatment products.

NUF was one of the shares to sell during the first half of 2010 amid poor results and earnings downgrades.

On 29 March, NUF reported a 1H11 operating net profit of $22.7 million.  This compares to an operating loss of $4.2 million loss a year earlier.

Including one-off costs and write-downs, Nufarm’s net loss came in at $40 million.  No interim dividend was declared.

Excluding glyphosate sales, group revenue rose 15% on-year to $694 million.  This was associated with a healthier gross margin as NUF sought to optimise its sales mix.

NUF was confident that positive climatic conditions in Australia and an improved operating environment will deliver a full year result significantly better than the prior year.

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Materials Shares News Fortescue Metals (FMG)

Fortescue Metals (FMG) is an iron ore miner, with operations located in the lucrative Pilbara iron ore province in Western Australia.

FMG was one of the market’s hot shares last year when it doubled its share price after bottoming out near $3.50 in May.

On 25 March, FMG downgraded its 1Q11 production guidance due to the wet weather events at the beginning of the year.

FMG now expects quarterly production to be at the lower end of its previous guidance of 8.5 – 9.0 million tonnes of iron ore.

However, Fortescue Metals said that operations are now back to normal and that its Christmas Creek ore processing, stockpile and train loading facility has now commenced.

For more FREE Fortescue Metals & Materials Shares News, click here.

International Trading Markets Commentary March 28 2011

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Hot Shares to Buy Ausdrill (ASL)

Ausdrill (ASL) is an international mining services group, whose principal activities include providing cutting edge drill and blast, exploration, supply and logistics services to the world's major mining companies.  They are a diversified company which generates its revenue from a wide range of activities.

ASL has a list of blue chip stocks who are its clients, including BHP Billiton, Rio Tinto and Fortescue Metals.

Over the past few years, ASL has made a well-planned effort to diversify its business and offer more services than the traditional drill, blast and exploration drilling businesses.  These additional services encompass more services to the mining industry.

This diversification is paying dividends, and contributing materially to revenue and growth, while supporting the company's major goal of becoming a total service provider to the mining industry.

Being heavily dependant on the resources sector, ASL also went through tough times in 2008 on a major correction in the commodities markets.

ASL recently reported first half results with revenue and profits at record levels.  It has been one of the hot stocks recently, surging more than 20% in the past week and a half alone.

Expansion on track

On 17 August 2009, ASL and Brandrill Limited (BDL) announced a proposed merger of the two businesses.

The integration has now been completed and the two businesses are largely complementary with significant synergies.

The move helped Ausdrill gain an immediate presence in Queensland, and the coalfields in the Bowen Basin.

The area is rife with opportunities associated with the recently approved Gorgon Project.

ASL has also significantly increased investment in plant and equipment.

Rising activity in the coal seam gas (CSG) market is likely to see greater demand for ASL’s services.

Africa continues to provide growth for ASL as mining activity ramps up in East Africa and Zambia.

Half results

For the half ending 31 December, ASL reported a 48% jump in underlying earnings to $95.9 million.

Net profit after tax for the period surged 72% to $36.3 million with EPS up 17% to 13.87 cents per share.

Revenue from operations soared 60% to $416 million boosted by the Brandrill integration.

ASL was also awarded new contracts in Africa by Perseus and Adamus.

Following its solid performance, ASL was promoted to the ASX 200 index.

Looking ahead

The company is targeting FY11 net profit after tax of $70 million implying a second half performance similar to the first half.

Unusually wet weather in Australia remains a key risk to operations as well as adverse currency movements.

ASL expects continuing improvement from increased level of activity. Revenue is already at record levels and increasing in all segments.

Margins are also improving after having been impacted by the Brandrill acquisition.

With an interest cover of 6.2 times, Ausdrill has its debt under control.

Despite its fairly high level of capex, ASL’s high level of cash generated should be sufficient to maintain strong profitability.

Commodity prices continue to charge higher which is a key upside driver for ASL as its blue chip clients generate higher earnings.

To access more FREE Hot Shares to Buy & Ausdrill news, click here.

Australian Trading & Investing News March 24

Consumer Discretionary Stocks News David Jones (DJS)

David Jones (DJS) is Australia’s second-largest department store retailer.

The company operates a chain of over 35 retail stores and primarily sells upmarket brands of clothing, accessories and homewares and David Jones-branded merchandise.

On 23 March, DJS reported a 5.2% increase in 1H11 net profit to $105.7 million, coming in at the lower end of its previous guidance of 5% - 10% profit growth.

Operating earnings increased 4.2% on-year to $125.6 million.  This came on the back of mostly flat sales growth.

Along with other retailers, DJS was one of the shares to sell from September last year as consumers tightened their belts amid rising interest rates.

During the half DJS contended with weak consumer sentiment and the recent wet weather events.  Recent trading conditions were also being impacted by the Japanese tsunami and unrest in Libya.

DJS reaffirmed a 5% - 10% profit growth forecast for the second half, but noted that growth would likely be at the lower end of guidance if there is a continuation of weak consumer spending.

DJS declared an interim dividend of 13 cents per share.

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International Trading Markets News March 23 2011

Australian Mining Shares News Murchison Metals (MMX)

Murchison Metals (MMX) is an emerging iron ore and infrastructure group focused on Western Australia.

According to news reports, Murchison Metals (MMX) and Mitsubishi Corp have suffered a cost blowout at their Oakajee port and rail JV in WA.

The Australian said that capital costs at the project are estimated to have blown out to $6.7 billion, from $4.4 billion.

In response, MMX admitted that capital costs at Oakajee were likely to increase although estimates were indicative and subject to review.

MMX slumped 6.7% on the day, making it the worst performer on the stock market (ASX 200).

Keep updated with FREE Murchison Metals advice and Australian Mining Shares news, click here.

Investing & Trading News March 22 2011

Consumer Staple Stocks News Coca-Cola Amatil (CCL)

Coca-Cola Amatil (CCL) is an Australasian bottler for US-based The Coca Cola Company.

CCL manufactures, sells and distributes Coca-Cola products, including carbonated soft drinks, mineral waters and other non-alcoholic beverages, plus packaged fruit.

CCL was one of the shares to buy in the first half of 2010, surging from $10.50 to a high of $12.51 in October.

On 21 March, CCL signed a 10 year agreement with US-based Beam Global to manufacture, sell and distribute its premium spirits portfolio in Australia.

Beam will continue to deliver the portfolio’s advertising, sponsorship and promotions.

Due to its increased responsibilities, CCL expects its working capital to increase by between $30 million and $35 million.

For more Coca-Cola Amatil information and free Consumer Staple Stocks News, click here.

Australian Trading Commentary March 21 2011

Best Performing Shares Sundance Resources (SDL)

Sundance Resources (SDL) is an Australian-based international iron ore company developing the Mbalam Project in the Republic of Cameroon in the central west coast of Africa.

SDL is advancing a significant exploration program and feasibility studies on the project based on production of 35 million tonnes per year hematite.

Sundance Resources recently announced a major resource upgrade at its West African Mbalam iron ore project.

JORC-compliant indicated resources at Mbalam have risen to 417.7 million tonnes at 61.4% iron-ore content.

This was due to the conversion of resources from inferred to indicated at the Nabeba Deposit in Congo.

The resource upgrade means SDL will be one of the stocks to watch in coming weeks.

SDL flew 9.3% on the day, making it one of the best performring shares in the Australian share market.

Want more free best performing shares and Sundance Resources advice? Simply click here.

Hot Stocks Caltex (CTX)

Caltex (CTX) is Australia's leading transport fuel supplier and convenience retailer and the only integrated oil refining and marketing company listed on the ASX.

CTX operates two major refineries, at Kurnell in Sydney, and Lytton in Brisbane. CTX also operates a convenience store network in association with service station sites.

Caltex supplies about one-third of transport fuel in Australia, and is a net importer of petroleum products.

The refiner’s business value chain incorporates supply, refining, logistics and marketing.

Though CTX has suffered in recent history over refiner margin pressure it has been one of the hot stocks since July last year.

The company has turned things around and recently reported FY earnings which beat analyst expectations.

Refined Earnings

CTX last month reported an FY10 net operating profit of $302 million, up 49% from a year earlier and beating analyst estimates.

CTX attributed the result to higher regional refiner margins, surging fuel sales and improved refinery reliability.  However, the stronger AUD eroded $94 million from CTX’s refiner margin.

Record sales for transport fuels were achieved, helping to bolster the result.

The group was bullish about the medium-long term outlook, citing continued recovery in US dollar refiner margins due to the expected decline in excess fuel supply in the Asia Pacific region.

CTX declared a final dividend of 30 cents, up from 25 cent in the prior year.

Production improves in 2H

In the first half of 2010, CTX’s production struggled hurt by reliability issues. Higher planned maintenance was experienced.

However, the second half showed a marked improvement helped by record mechanical availability.

Production in the second half improved to near record levels of 5.5 billion litres with refinery utilisation in excess of 78%.

For the full year, production of petrol, diesel and jet fuel was 9.8 billion litres. This was slightly weaker than the previous year.

CTX refiner margins averaged US$8.39 per barrel in 2010 compared to US$5.95 per barrel in 2009.

Refining profitability is often impacted by the Aussie dollar. This saw CTX introduce a foreign exchange hedging program from 1 July 2010.

The relative strength of the Aussie dollar to the US dollar will reduce the translated Aussie dollar CTX refiner margin.

However, a rising Aussie dollar in 2H10 offset losses in crude payables from 1H10.

Looking ahead

The Catalyst program is expected to deliver a significant improvement in business dynamics.

The 2011 outlook for CTX remains positive despite the recent spike in oil prices.

When CTX reported its FY earnings, it anticipated that the excess supply in the Asia Pacific region should slowly decline.

The Japan crisis has now thrown a spanner in the works as Caltex is set to benefit after Japan shut down 31% of its refining capacity following the devastating earthquake and tsunami.

This will help ease a regional gasoline supply overhang, pushing up margins for refiners.

Exposure to the mining, agriculture and transport industries in Australia is expected to give CTX significant upside as the global economy improves so it will be one of the stocks to watch in coming months.

For more FREE Hot Stocks advice and Caltex News, click here.

Best Performing Stocks Gindalbie Metals (GBG)

Gindalbie Metals (GBG) is junior iron-ore miner, based in WA.

On 16 March, GBG announced a $125 million cost blowout at its Karara iron-ore project.

GBG now expects construction costs to total around $2.63 billion due to soaring labour, fuel and materials costs.

The company brought forward the ramp-up of the project to avoid what it expects to be a more damaging inflationary environment.

The expected cost savings saw GBG rocket 9.5% on the day, making it one of the best performing stocks in the share market.

For more free Best Performing Stocks advice and Gindalbie Metals news click here.

Australian and World Markets Trading News March 16 2011

Australian Energy Shares News Origin Energy (ORG)

Origin Energy (ORG) is a leading Australasian integrated energy company, participating in most segments of the energy supply chain, including natural gas and oil exploration and production, electricity generation, and energy retailing.

The company is also considered among the blue chip stocks in the Australian share market.

On 15 November, ORG announced a $2.3 billion capital raising to help pay for December’s purchase of NSW’s electricity assets.

The raising also means that ORG has reinstituted its FY11 guidance to underlying profit growth of around 15%.

The higher earnings forecast reflects an expected lower interest expense due to the paying down of debt associated with the asset purchase.

The new issue will be through an entitlement offer at $13, representing a 17% discount to ORG’s last price of $15.66.

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International Trading Markets Commentary March 15 2011

Financial Shares News Goodman Group (GMG)

Goodman Group (GMG) is an integrated property group that owns, develops and manages industrial and business space globally. Some of its investments include business parks, office parks, industrial estates and warehouse and distribution centres.

GMG also gives its investors access to its specialist services and property assets through its range of listed and unlisted property funds.

Like many other property managers GMG was one of the shares to sell during the GFC, losing more than 90% of its value from the peak.

On 14 March, GMG confirmed that it had been approached to recycle assets within its Asia Pacific managed funds portfolio.

Goodman Group said it was considering the proposal but stressed that there was no certainty it would proceed to execution.

GMG was responding to an article in the Australian Financial Review, which said the group was preparing to seed a Malaysian industrial property fund with properties from its Asian network, valued at about $1.1 billion.

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Daily World Markets Trading News March 11 2011

Shares to Buy NRW Holdings (NWH)

NRW Holdings (NWH) provides a diverse range of specialist services to Australia's mining and resources organisations.

NWH’s business units are split into four divisions: Civil, Mining, Action Mining Services and Action Drill & Blast.

The group’s head office is located in Perth, with branch offices spanning Australia and West Africa.

NWH’s clients are sector blue chip stocks, including BHP Billiton, Rio Tinto and Fortescue Metals. The group’s lucrative contracts over FY10 offset resource sector shakiness, and FY11 is looking to be a stronger year on increased resource sector activity.

Recently released first half results have already reflected inherent strength with profit jumping over 30%.

Resources return to strength

NWH may not be a famous industry name, but its clients are amongst the resource sector’s biggest names.

In its civil division, NWH’s RGP5 South project, primarily a rail contract, is in alliance with BHP Billiton Iron Ore.

NWH is also carrying out port infrastructure and mine site earthworks for CITIC Pacific Mining at Cape Preston, working on the Christmas Creek Rail project for Fortescue metals, and assisting Rio Tinto with Hope Downs, the Western Turner Syncline project, Simandou and Tom Price Mining.

NRW Holding’s long-term alliance with these big names ensures the group is never short of work, even during a resource sector downturn.

The resource sector has returned to boom times owing to the global economic recovery, and NWH has been one of the shares to buy since June last year.

Furthermore, NWH stands to pick up more lucrative projects with industry leaders in FY11.

First half results

Last month, NWH confirmed 1H11 revenue of $358.3 million, up 30% on a year ago.

Net profit grew 31% to $20.4 million whilst the group declared a half dividend of 4 cents per share, up from 3 cents last year.

NWH said the result was driven by an improved performance in the civil, mining and the drill and blast divisions.

The group’s balance sheet is in a strong position with a cash balance of $40.9 million and net debt of $14.9 million at 31 December 2010.

The company says it is well placed to achieve its minimum revenue target of $700 million, representing 15% growth on FY10.

However NWH’s previous guidance outlined expectations of a 15% – 20% growth in revenue for the full year.

Looking ahead

NWH has a significantly improved cash position in 1H11. Combined with its improved gearing position, NWH has plenty of capacity for future growth.

NWH’s balance sheet is thus in good shape to underpin expansion opportunities and growth.

The value of secured revenue for FY11 is currently $643 million which is 92% of its minimum FY11 target of $700 million.

NWH will be looking to diversify its revenue base as it aims to create a $1+ billion plus order book.

The group has a balance of order book value of $226 million for FY12 and $194 million post-FY12, and is now focused on benefitting on a resource sector recovery with a wide range of civil, mining and oil and gas clients demanding NWH’s services.

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Australian Investing & Trading Commentary March 10 2011

Gold Stocks to Watch Regis Resources Limited (RRL)

Regis Resources Limited (RRL) is an emerging Australian gold production and exploration company.

Its management team has a successful track record of developing mid sized gold operations within Australia and Africa.

RRL’s flagship is the 100% owned Duketon Gold Project, 130km north of Laverton in WA.

Operations commenced in August 2010 following the construction of the Moolart Well Gold Mine and the mine boasts a JORC reserve of 603,000 ounces (oz).

Average production is expected to be 90,000oz over a six year mine life.

RRL is confident that Moolart Well offers further reserve and resource growth potential from continued exploration programmes.

RRL also has the Garden Well project which is located 30km south of Moolart.

A maiden ore reserve at the Garden Well deposit highlights the potential of the region.

Quarterly results

For the December quarter, RRL produced 23,851 oz from Moolart at a cash cost of $450 per oz (prior to royalties).

Total costs for gold produced came in at $10.73 million prior to royalties.

Gold sales totalled 20,921 oz at an average price of $1387 per oz.

This brought in revenue of $29.02 million. Cash and gold bullion on hand at 31 December 2010 was $21.5 million.

Gross profit for the quarter was approximately $18.29 million.

Gold production for the half year ended June 2011 is forecast at between 45,000 – 50,000 oz at cash cost before royalties of $500 - $550 per oz.

This will result in a gross profit in the range $40.5 - $42.5 million assuming all gold produced is sold and an average gold price of $1400.

Resource update

RRL announced a resource increase at Garden Well to 2.14 million ounces (moz) contained gold.

A new reserve estimate following the resource upgrade will be completed this month.

Results from a diamond drilling program which commenced in January 2011 are scheduled for release in June 2011.

Regis Resources Limited believes the updated 2.14 moz resource at Garden Well confirms the likelihood of further reserve upgrades at the project.

The miner expects Garden Well to produce approximately 180,000oz of gold per annum.

Successful development of the Garden Well deposit should lift RRL’s gold production to around 270,000 oz per annum commencing FY13.

Should it achieve that production rate, RRL would be a well established mid tier gold miner.

Gold boom and outlook

Gold has gained over 30% this year, reaching fresh record highs last week as tension in North Africa and the Middle East pushes investors towards the safety of the shiny metal.

The metal printed highs of around US$1440 last week and continues to hold its ground well above US$1400.

Inflation continues to be an issue and is likely to contribute to the gold price rally.

With plenty in the reserve growth pipeline and rising gold prices, RRL will be one of the gold stocks to watch in coming months.

To receive more free Gold Stocks to Watch advice and Regis Resources news click here!

Investing & Trading News Australia March 9 2011

Gold Stocks to Buy Northern Star Resources (NST)

Northern Star Resources (NST) explores and develops mineral resources in the highly prospective Kimberley region.

NST is an emerging gold producer and explorer with a market capitalisation of around $120 million.  Its main project is the Paulsens gold mine which it purchased for $40 million.

NST has been one of the hot shares in recent months, more than doubling its share price since last August.

The miner expects to release a resource upgrade later this month and a new mine plan for Paulsens this year.

NST recently acquired the 668,000 ounce (oz) Ashburton Gold Project which is close to the Paulsens mine.

Ashburton acquisition

NST agreed to purchase the Ashburton Gold Project from Sipa Resources which will be paid for via a royalty on future production.

The deal includes 668,000oz resource and the Mt Olympus Gold Mine, which has previously produced 340,000oz.

This puts NST in a prime position to increase production rates, project life and create shareholder wealth through exploration.

Ashburton is a strategic asset for NST as it provides an immediate resource boost to the miner’s resource base.

Bright future

The miner is debt free after paying a final $2.5 million production royalty on the Paulsens gold mine acquisition.

Paulsens produced a record 48,559 oz in the December half, generating revenue of $65.4 million.

Cash costs for the half were $510 per oz which is low when compared to other Australian gold miners.

Northern Star Resources repaid the $40 million acquisition of Paulsens in just seven months.

Resources at Paulsens currently stand at 128,700 oz. Added to the Ashburton resource, the total resource from the two is 796,700oz.

Current production is 6,000oz per month which brings in revenue of approximately $8 million per month.

Being unhedged, NST has maximum exposure to the surging gold prices.

Its exploration program at Ashburton is well underway and could deliver a significant resource upgrade as early as this month.

With strong cashflow and a robust balance sheet, NST is in a good position to grow.

Outlook

Gold has gained over 30% this year, reaching fresh record highs this week as tension in North Africa and the Middle East pushes investors towards the safety of the shiny metal.

The metal printed highs of around US$1440 this week and continues to hold its ground well above US$1400.

NST’s strong financial position leaves it well placed for further acquisitions in line with its objective of building a major mining house.

The miner is likely to announce a resource upgrade this month which would give it further upside.

With the potential for further acquisitions and strong gold prices backing the unhedged miner, it will be one of the stocks to watch in coming months.

For additional Australian Gold Stocks to buy and Northern Star Resources info click here.

ASX IT Shares News Carsales.com.au (CRZ)

Carsales.com.au (CRZ) is Australia’s largest online automotive, motorcycle and marine classifieds business.

The company listed on the Australian share market in 2009.

Privately owned Nine Network has sold its 49% stake in carsales.com.au (CRZ).  Also CRZ announced the resignation of its non-executive directors.

The block trade was sold to a range of institutional and sophisticated investors at $4.92 per share.

Nine’s private equity owners, CVC Asia Pacific, said the sale proceeds would be used to cut $585 million in debt in order to prevent the need for an IPO of Nine.

CRZ slumped 4.6% on the day, making it one of the worst performers in the share market.

For free daily advice on ASX IT shares including Carsales.com.au click here.

Australian Stock Investing & Trading News March 7 2011

Materials Shares News Fletcher Building (FBU)

Fletcher Building (FBU) is a NZ-based deliverer of building products, and construction materials and services across the world.

FBU has been one of the hot stock picks in 2011, surging from around $5.75 to around $6.43.

On Friday, FBU advised that due to the recent New Zealand earthquake, it expects FY11 net profit to be between $14 million and $24 million lower than previous estimates.

Given the major disruptions to the Christchurch economy, Fletcher Building has made an allowance of $5 million for its part in the city’s expected recovery programme.

Separately, FBU has extended its $700 million takeover offer for Crane Group (CRG) until March 25.  The deal was previously accepted by CRG directors.

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Australian Trading and Investing Commentary March 4 2011

Hot Shares to Buy Beach Energy (BPT)

Beach Energy (BPT) is an oil and gas exploration and production company based in South Australia. BPT has oil and gas reserves of 66 million barrels of oil equivalent (mboe) equivalent and contingent resources of 297 mboe.

The company holds interests in more than 300 exploration and production tenements in Australia, New Zealand, Papua New Guinea, Tanzania and Egypt among others.

BPT was among the worst performers in the Australian share market last year on the back of declining oil and gas production.

The drop in output was due to planned and unplanned downtime at the Basker Manta Gummy project and a natural resource decline and downtime at the Cooper Basin.

Unsuccessful exploration in the Bass Basin also resulted in a $64 million writedown.

The end of last year saw things start to turn around for BPT as it gained majority control of Impress Energy in an on market takeover.

A revival of shale gas assets in the Cooper Basin helped by enhanced drilling technology gave BPT further upside.

This year has been all in all positive for Beach Energy as oil prices surge to new highs.

Impressive takeover

On 6 December 2010, BPT announced a recommended and unconditional on market cash offer of 8.5 cents per share for all the issued and outstanding shares of Impress Energy it did not own.

BPT subsequently gained majority control of Impress on 14 December 2010.

Overall, BPT spent $38.1 million on the Impress acquisition.

The Impress takeover gives BPT access to the Cooper Basin Western Flank oil. Impress holds a 40% interest in highly prospective Western Flank oil acreage.

Drilling has commenced and if successful will provide a material reserves upgrade and subsequent significant increase in operated production during FY11 and FY12.

A dominant shale gas acreage in the Cooper Basin has shown encouraging results with potential for a material resource booking in 2011.

Saved by oil again

Beach Energy this week reported its 1H11 results, keeping the market happy.

Gross profit for the half of $37 million was down 18% on the prior year, driven mainly by lower production.

Sales revenue gained 2% to $265 million due to higher prices, partly offset by higher Aussie dollar.

Oil sales revenue was up $3 million due to higher sales volumes, which included the sale of crude from the Jackson-Moonie pipeline.

Underlying profit for the half totalled $19 million, 27% lower than the previous year’s half.

BPT declared a 1 cent per share dividend based on its FY10 results and has further announced a half dividend of 0.75 cents per share.

Oily time

For the first half of FY11, BPT achieved an average oil price of US$81 a barrel, up 8% on year. Average gas prices were also up 8%.

Oil prices have since had an impressive run, currently hovering around the US$100 a barrel level.

Tension in the Middle East and North Africa is threatening oil supply which has resulted in a run up in oil prices.

However, a stronger Aussie dollar is likely to offset part of the oil price gain effect.

Looking ahead

BPT had $179 million cash on hand and no debt as at 31 December 2010 which gives it plenty of room for further exploration.

The company has a large resource base and excellent prospects for reserves growth via resource conversion and exploration.

BPT has given FY11 production guidance of 7 mboe which may be upgraded following the Impress takeover.  It has been one of the hot shares to buy in recent months, surging more than 30% since early December.

We feel the stock has significant upside potential on the back of the Impress takeover and rising energy prices.

For more free, hot shares to buy and Beach Energy advice, click here.

ASX Best Shares Austar United (AUN)

Austar United (AUN) is the largest provider of pay TV in regional and rural Australia, with around 730,000 customers receiving the company’s primary service of satellite digital television.

Yesterday, AUN confirmed its major shareholder, US-based Global Inc., and Foxtel have entered talks about a possible takeover of the company.

AUN was responding to earlier media reports which suggested Foxtel had made a $2 billion offer for the group.

Foxtel, which is 50% owned by Telstra (TLS), 25% owned by Newscorp (NWS) and 25% owned by Consolidated Media (CMJ), did not confirm the rumours.

AUN flew 10.6% following the announcement, making it one the best shares for the day in the Australian share market.

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Investing & Trading Summary March 2 2011

Mining Shares News Equinox Minerals (EQN)

Equinox Minerals (EQN) is an international mining company that is dual listed in Canada and Australia, focused primarily on copper but with some small exposure to other resources (such as uranium and gold).

EQN boasts operations in Western Australia and Peru but the company's main project is the development of its 100%-owned Lumwana Project (Zambia), one of the largest new copper mines to be developed globally over the last decade.

EQN was hit hard yesterday after it made a takeover offer for Canadian-based Lundin Mining the previous night.

The C$4.8 billion offer is an attempt by EQN to derail a planned friendly merger between Lundin and fellow Canadian miner Inmet.

EQN said its bid would make it one of the top 10 copper producers in the world by 2016.  EQN would return to a net cash position in four years, with the deal expected to generate bumper cash flows.

EQN’s part cash/part scrip offer represents a 26% premium to Lundin and Inmet’s share exchange offer, which has no premium.

EQN slumped 6.1% on the day, making it one of the worst performers in the Australian share market.

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Blue Chip Shares News QBE Insurance Group (QBE)

QBE Insurance Group (ASX:QBE) is a leading provider of general insurance and reinsurance services in Australia, the Pacific, Asia, the Americas and Europe.

The company is Australia’s largest insurer, and is considered one of market’s the blue chip shares.

It has offices in 45 countries, and offers a range of retail and wholesale insurance products, across a gamut of insurance lines.

Yesterday, QBE reported its FY10 results, with net profit falling 17% on FY09 to US$1.28 billion as national disasters in Australia, Chile and NZ significantly upped claims.

The profit result was in line with the company’s guidance. QBE’s overall insurance profit margin - a widely watched underlying profitability measure - fell to 15% from 17% a year earlier.

The profit margin came in below the company's 16%-18% target range due partly to the unusually high number of extreme weather events and crimped by low interest rates in the UK, the US and Europe.

Net earned premium, QBE’s key revenue measure, rose by 20% to US$11.36 billion, in line with the company's guidance.

As expected, QBE will pay a final dividend of 66 cents per share, flat on year, taking the full year dividend to $1.28.

QBE noted its outlook is positive, with expected net earned premium growth of 22%-25% in FY11 from acquisitions and expectations that insurance profit will grow by at least a similar percentage.

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