Shares of the Week Perilya (PEM)

Perilya (ASX:PEM) is a mining and exploration company and is among the top 20 global producers for zinc and the top 10 for lead production.

PEM is investing substantially in the development of its three major projects located in the Broken Hill (New South Wales), Mt Isa (Queensland) and Flinders (South Australia) regions as well as exploration in the surrounding tenements.

The group is 52%-owned by Shenzhen Zhongjin Lingnan Nonfemet, China’s third largest zinc producer.

The company has rapidly grown from a junior explorer to a company with two operating mines, substantial cash reserves, and investments in other resource companies.

It has also been one of the hot stocks since late February, having surged more than 40% from that month’s lows.

PEM has a wide exposure to base metals and gold. Whilst most commodities have gained strength of late, this diversification helps PEM flourish during bearish economic times (which drives up gold demand) and during times of economic strength (which drives up copper prices).

Regional operator

PEM is the operator of the Broken Hill zinc, lead, silver mine in NSW and the Flinders zinc silicate project in South Australia.

The company’s Broken Hill mine went through a resizing in 2008, resulting in a significant improvement in productivity and cashflows and an extension to the mine’s life by at least 10 years.

Perilya has an active exploration and development program covering Broken Hill and Flinders (in South Australia, in the vicinity of its Beltana zinc silicate project).

At present, PEM is reviewing options for the development of the Mount Oxide Copper and Cobalt Project in the Mount Isa region in Queensland.

PEM recently announced a new mineral resource estimate for the Moblan Lithium Project in Quebec, Canada, which has more than doubled the earlier mineral resource for the project.

Diversified resources

PEM, especially now with its acquisition of Globestar, is exposed to a very wide range of metals, including lead, zinc, lithium, nickel, silver, copper and gold.

Copper price has been steadily strengthening on signs of a global economic recovery, whilst nickel prices on the London Metals Exchange averaged US$9.49 a pound this year against US$5.67 last year.

Copper prices should rise as mine production fails to keep up with rising global demand, creating supply-and-demand issues.

Gold has gained significantly this year, reaching an all-time high of $1,624 an ounce last night, as the US debt crisis remains unresolved.

The Globestar acquisition further diversifies PEM’s metals portfolio. The Moblan Lithium Project in Quebec is looking to benefit from forecast future demand for lithium in electronic products, particularly in electronic car batteries.

Demand from China is set to drive the boom. Lithium usage in electronics has already grown 25%-30% from 1999-2008.

Quarterly report

For the June quarter, PEM saw net cash costs at its Broken Hill operation come in at below market guidance.

Production levels for the quarter saw combined metal production of 30,000 tonnes of contained zinc and lead coming in line with guidance.

PEM reiterated annualised production guidance of 110,000-120,000 tonnes of combined zinc and lead.

At June 2011, PEM held cash, deposits and investments totalling $117.9 million.

Looking ahead

PEM’s diversification and growth strategy has reduced its reliance on the Broken Hill Operations as its sole source of revenue and increased its ability to withstand external shocks.

The miner does not feel the proposed carbon tax will have any material impact on its Australian operations.

PEM is a low-cost mining and exploration company which is invested heavily in Australia but also has overseas exposure, most recently via its acquisition of GlobeStar.

GlobeStar’s Canadian lithium operation adds to PEM’s already-impressive metals portfolio.

The company has rapidly grown from a junior explorer to a company with two operating mines, substantial cash reserves, and investments in other resource companies.

PEM is one of the stocks to watch.

Click to Receive FREE Recommendations for 7 Days

Daily Global Financial Markets Video News July 29 2011

Daily Global Financial Markets Video News July 29 2011

Australian Mining Shares News Mount Gibson (MGX)

Mount Gibson (ASX:MGX) is Australia's fourth-largest iron ore miner, based in Western Australia.

On 27 July, MGX announced an unaudited FY11 net profit of $239.5 million, which was up 80% on-year.

However, iron ore production fell 26% in the same period, with lower costs the primary driver of the profit result.

MGX shares slumped 4.3% on the day, making it one of the worst performers in the Australian stock market.

Click for FREE Daily Shares Advice

ASX Stocks to Watch Alesco Corporation (ALS)

Alesco Corporation (ASX:ALS) is a marketer and distributor of industrial brands to niche markets in Australia and New Zealand.

ALS’s customers include businesses involved in building and renovations, mining and construction and water management.

On 26 July, ALS reported a FY11 net profit of $13.6 million, up from the prior year’s loss of $124.3 million.

Core EBIT rose 9% to $36.5 million, with the garage doors division (EBIT up 23%) driving the result.

However, revenue fell 3% amid a weak housing market and natural disasters in Queensland and New Zealand.

A final dividend of 7 cents was declared, plus a special dividend of 5.5 cents.

ALS warned that trading conditions are likely to remain tough in FY12 due to a forecast decline in consumer confidence and Australia’s housing market.

As such, it is questionable whether ALS can maintain its recent gains, therefore it will be one of the stocks to watch in coming months.

Click for FREE Daily Stocks to Watch, Buy & Sell Advice

Daily Global Financial Markets Video News July 27 2011

Daily Global Financial Markets Video News July 27 2011

ASX Sell Stocks Australian Agricultural Co. (AAC)

Australian Agricultural Co. (ASX:AAC) is the oldest continuously operating company in Australia, supplying domestic and export beef consumers.

AAC is the largest beef cattle company in Australia, and is managed from Brisbane, with regional management located on each station. The business also has one of Australia’s leading composite breeding programs.

AAC has been one of the shares to sell since April, tumbling from a high of $1.70 to current prices around $1.40.

On 25 July, AAC reported a 1H11 net loss of $12.6 million.  This compares to a net loss of $12.2 million a year earlier.

However, revenue jumped 53% on-year to $58.2 million, driven by an increase in cattle sales and favourable seasonal conditions.

AAC reaffirmed FY11 EBITDA guidance of $50 - $60 million, taking into account the Meteor Downs station sale, favourable market conditions and the government’s repeal of the live cattle ban.

Click to receive FREE Daily Stock Recommendations for 7 Days!

Daily Global Financial Markets Video News July 26 2011

Daily Global Financial Markets Video News July 26 2011

Australian Shares News Austar United (AUN)

Austar United (ASX: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.

AUN was dealt a blow on Friday after the ACCC blocked Foxtel’s takeover for the group.

In blocking the bid, the competition regulator warned that a Foxtel-Austar tie-up would substantially reduce competition in the pay-TV market.

The ACCC denied that the decision was related to the Newscorp (NWS) phone hacking scandal.  Foxtel is 25% owned by NWS.

A final decision on the bid will be made on 8 September, although it is unlikely the ACCC will change its mind.

AUN shares sank 16.2% on the day, making it one of the worst performers in the stock market.

Click for FREE Australian Share Market Recommendations

Daily Global Financial Markets Video News July 25 2011

Daily Global Financial Markets Video News July 25 2011

Gold Stocks to Buy Resolute Mining (RSG)

Resolute Mining (ASX:RSG) is a gold mining and exploration company, operating primarily in Africa and Australia.

It is the second largest gold producer by volume listed on the Australian stock exchange.

The group has a portfolio of three operating mines in Africa and Australia.

Its three operating mines are: Golden Pride in Tanzania, Ravenswood in Queensland, and the newly re-developed Syama in Mali, which was once a BHP Billiton operation.

RSG’s operations are well-placed, and exploration is likely to lead to further resource discoveries, underground, and in nearby pits.

Being unhedged, RSG continues to benefit from a boom in gold prices.

Doubling exploration budget

RSG today announced an annual group exploration budget increase to $20 million in FY12, from $10 million in FY11.

The news comes after RSG identified some high priority exploration targets at Syama in Mali and Ravenswood in Queensland.

RSG has a strengthening balance sheet on the back of operating improvements at Syama.

Results from current exploration at both projects will be provided in the miner’s June Quarter Report.

It is targeting an increase in production from its flagship Syama project to 250,000oz of gold a year after an extended ramp-up and commissioning period

Golden update

Last month, RSG provided its Group gold production and cash cost guidance for FY12.

Gold production in the coming year is forecast to increase to 410,000 ounces at a cash cost of $730 per ounce.

This cements RSG’s position as the second largest primary listed gold producer on the ASX.

It also represents a substantial increase in production and reduction in cash costs.

RSG’s continued improvement in outlook is underpinned by ongoing progress being achieved at the Syama operation in Mali.

The miner’s shares surged 7.6% on the day of the announcement.

Looking ahead

RSG could be debt free by the end of December should existing share options and convertible note debt be converted to equity.

The miner has a highly prospective tenement package with the potential to add significant value for shareholders.

Gold has gained significantly this year, reaching fresh record highs this week as global economic uncertainty pushes investors towards the safety of the shiny metal.

The metal printed highs of around US$1610 this week and continues to hold its ground well above US$1500.

Following the recent production and reserves updates, RSG seems well placed to benefit from the surging gold prices so it will be one of the stocks to watch in coming months.

Click to Receive FREE Trading Recommendations for the next 7 Days!

Daily Global Financial Markets Video News July 20 2011

Daily Global Financial Markets Video News July 20 2011

Hot Stocks News Macquarie Airports (MAP)

Macquarie Airports (ASX:MAP) is one of the world’s largest private airport owners and operators with a core portfolio of three major airports - Sydney, Copenhagen and Brussels.

It has been one of the hot stocks in recent weeks, surging from around $3.00 in June to be currently trading at $3.40.

MAP announced yesterday that it has completed its asset swap with the Ontario Teachers’ Pension Plan (OTTP).

The deal was revealed last month, but the finer details have now been settled.

Under the deal MAP will acquire OTPP’s 11.02% stake in MAP’s Sydney Airport, taking MAP’s ownership level in its key asset to 85%.

In exchange, MAP is handing OTTP its stakes in the Brussels and Copenhagen airports.

OTTP will also pay MAP approximately $791 million.

The deal will see MAP focus purely on its Sydney airport asset, reducing its exposure to the struggling European market. It will also simplify the company’s corporate structure.

MAP will also be cashed up after the deal and expects to make a return of capital or special dividend of around 80 cents to distribute the surplus proceeds from the OTPP.

The airport manager also gave distribution guidance of 21 cents per security for 2011 and 2012.

Click for more FREE daily Hot Stocks

New Share Trading & Property Investment Forum

Australian Stock Report are proud to announce that we have teamed up with Property Planning Australia in our quest to broaden our service offering to include property investment as a complimentary strategy with share trading.

We are all acutely aware that property investment plays an important role in most people's lives, generally as the primary residence. Like shares, property can also be used as an investment strategy that forms part of a Self Managed Super Fund or as a tax effective tool.

At "The Share Trading & Property Investment Forum" day-long event we have assembled some of the industries heavy weights who will cover the Financial Markets & the Property Sector topics.

Financial Markets Topics include;

> Technical & Fundamental Analysis
> FX & CFDs Trading
> Online & full service brokers

Property Sector Topics include;

> Investment Strategies
> Off plan v Established
> Gearing, Finance & Tax
> Auction Vs For Sale

The Share Trading & Property Investment Forum includes; Lunch, Morning Tea & a FREE Forum Pack containing over $500 worth of Value!

Reserve Your Seat Now with an Early Bird Special Price, click here!

Daily Global Financial Markets Video News July 20 2011

Daily Global Financial Markets Video News July 20 2011

ASX Best Shares Eastern Star Gas (ESG)

Eastern Star Gas (ASX:ESG) is focused on the exploration and development of coal seam gas (CSG) in Northern NSW for the Eastern Australian and potentially international LNG markets.

On 18 July, ESG accepted a $730 million takeover offer from Santos (STO).

The all-share offer values ESG at 90 cents, which represents a 51% premium to ESG’s closing price on Friday.

As part of the deal, STO has also agreed to sell a 20% interest in ESG’s Gunnedah permits to TRUenergy for $284 million.

ESG shares flew 41.2% on the day, making one of the best performers on the Australian share market.

Click for FREE Trading Advice.

Daily Global Financial Markets Video News July 19 2011

Daily Global Financial Markets Video News July 19 2011

BHP Billiton (BHP) Petrohawk Takeover News

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 also the biggest company by market cap in the Australian share market, and is 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.

Last week, BHP made a US$15 billion takeover offer for US gas producer, Petrohawk Energy.

The all-cash offer will significantly expand BHP’s oil and gas assets, and in particular, its shale gas holdings in the US,

The deal also signals that BHP is betting the US will turn to unconventional sources of energy, such as shale gas, in an attempt to wean itself of foreign oil.

The offer was unanimously recommended by Petrohawk directors.

For 7 days of FREE Stock Recommendation, click here!

Daily Global Financial Markets Video News July 18 2011

Daily Global Financial Markets Video News July 18 2011

ASX Sell Shares News CSR Limited (CSR)

CSR Limited (ASX:CSR) is a leading building products company with operations throughout Australia and New Zealand.

CSR’s stock dropped dramatically over 2008 into 2009 as the company suffered from two angles: a poor sugar industry and a dire building sector.  It was previously considered among the market’s blue chip stocks.

Investors were unsure of the combined effect of its exposure to two completely different industries.

On the one hand was a subdued housing market whilst on the other was a less cyclical, fairly defensive sugar industry.

Due to problems with the two businesses, CSR went through a demerger. CSR established a sugar and renewable energy company – Sucrogen. This was later sold to Wilmar International for $1.75 billion.

This left CSR as a traditional manufacturing group, supplying building products in Australia and New Zealand. The group also has an interest in aluminium smelting and property.

The business is currently facing some challenges, particularly a challenging building and housing sector.

Divesting assets

Over the past two years, CSR has been actively divesting some of its assets.

In a bid to stage a recovery, CSR made the decision to demerge its business into two new separately listed companies: one for sugar and renewable energy, and another for its building products, property and aluminium businesses.

Last year, CSR agreed to sell its insulation panels and trading businesses in the Asian region to Rockwool group for $128 million.

CSR stated that the sale will allow it to better focus on the Australia/New Zealand building products market.

The decision followed on from the sale of CSR’s Sucrogen division to Wilmar International.

At the time, CSR said it would consider a range of capital management initiatives to utilise these funds efficiently, which the market took as implying it may consider an acquisition.

A sweet result

In May, CSR reported a 13% on-year increase in FY11 underlying profit to $90.2 million.

Including the one-off gains related to its sale of Sucrogen and its Asian insulation business, CSR’s net profit totalled $503.4 million (compared to a $111.7 million loss in FY10).

CSR saw earnings growth across all of its businesses (ex-insulation), despite the impact of wet weather in eastern Australia.

A final dividend of 5.3 cents was declared. Adding this to a special dividend and a capital return from the Sucrogen proceeds takes the total amount distributed to shareholders for the year to $1.72 a share.

The company returned $800 million to shareholders from sales of Sucrogen and Asian Insulation businesses.

Gloomy outlook

The demerger and divestment helped CSR’s shares to hold up for a while but a bloomy outlook for the sector has since hurt CSR.

The building sector faces tight credit conditions and the prospects of higher interest rates.

CSR feels leading indicators such as finance and housing approvals point to a moderation in housing activity over the coming year.

We feel CSR has a lack of catalysts at the moment to drive value. The outlook across its businesses is dismal and its share price weakness reflects that.

Parts of its business are also being negatively affected by a strong Aussie dollar.

With plenty of macroeconomic issues surrounding CSR and its peers, we feel CSR is likely to be one of the shares to sell in the near term.

For Daily Trading Recommendations get your FREE Trial.

Daily Global Financial Markets Video News July 15 2011

Daily Global Financial Markets Video News July 15 2011

Mining Stocks to Watch Integra (IGR)

Integra (ASX:IGR) is an Australian gold explorer looking at becoming a significant new mid-tier Australian gold production house.

IGR has built up its portfolio through a series of acquisitions, joint ventures and strategic alliances – predominantly in the Eastern Goldfields region of Western Australia.

It is looking to commission its flagship, the Randalls Gold Project. In January, IGR announced a 40% increase in resources.

The miner has an attractive asset portfolio with low cost gold production, approximately $500 per ounce cash cost.

It has enjoyed a successful transition to a gold producer aiming to produce 140,000 ounces (oz).

IGR has a good track record of discovery and development with significant exploration potential.

The miner recently reported shallow high grade gold results at the Lucky Bay prospect.

Business investment

Integra is looking to spend $12 million upgrading its processing facility. It will also be looking to repay $20 million worth of debt.

By the end of FY12, the company will be nearly debt free.

The Randalls Gold project will be producing 90,000oz per year at $500 per ounce.

The process plant expansion is expected to be completed by August. The target production is 100,000oz per annum.

There are also plans to increase production to 120,000-140,000oz per year underpinned by underground production potential.

Looking ahead

IGR has a very strong business primed for long term growth. The recent positive results at Lucky Bay are testament to IGR’s strength and potential.

Gold has gained significantly this year, reaching fresh record highs as global economic uncertainty, natural disasters and tension in North Africa and the Middle East pushes investors towards the safety of the shiny metal.

The metal tacked on 4% last week and continues to hold its ground well above US$1500.

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

Click here for FREE Daily Trading Picks.

New Perth Gold Investors & Traders Expo

Australian Stock Report is proud to announce it's Perth Investors & Traders Expo!!! With a special focus on Gold, this multi speaker daylong event will cover topics including;
> Technical & Fundamental Analysis
> Gold Trading
> FX Trading
> CFD's
> Options
> Charting software

Keynote Speaker:

Tommy D McKeith

Executive Vice President, Head of Exploration & Business Development Gold Fields, South Africa

BSc Hons (Geology) GDE (Mining), & MBA

Gold, Beyond $2,000: Why gold's bull run is set to continue

Gold prices continue to soar!

Certainly an investment in gold has been one of the best moves anyone could have made in the last 5 years. But with simmering economic turmoil in Europe, strife in the Middle East, and US debt seemingly ballooning out of control, what does the near-future hold for the precious metal?

Tommy McKeith is Executive Vice President, Head of Exploration & Business Development for Gold Fields, one of the world's biggest gold producers. Tommy has been integral in forming the company's ongoing strategy and Gold Fields' massive 3.6 million gold equivalent ounces annual production remains unhedged - the ultimate vote of confidence in rising gold prices.

Australian Stock Report is offering you the chance to come and learn from this leading industry expert why he feels that the golden bull run is set to continue. Tommy will set forth the fundamentals underpinning an ongoing investment in gold, and share with you his expected timeframe for when it may well breach the psychological $2,000 barrier (and what lies beyond $2,000!).

Investors who currently have an exposure to the gold sector, or are looking to insulate their portfolios from the continued uncertain global economic and geopolitical environment, simply cannot afford to miss this fantastic key note presentation.

Click to Reserve Your Seat Today, Hurry Limited Seats!

Shares to Sell News Corporation (NWS)

News Corporation (ASX:NWS) is a diversified media giant with interests all over the world and in most facets of media.

It is also considered among the global market’s blue chip stocks.

NWS thus has a wide range of household name services and assets under its belt, including Fox Filmed Entertainment, Twentieth Century Fox Television, Fox Sports, book publisher Harper Collins, the New York Post in the US, web services Photobucket and MySpace, and Dow Jones.

The news giant has made headlines lately following its $12.48 billion bid for pay television operator British Sky Broadcasting Group.

It is also embroiled in a British media scandal following some phone hacking allegations.

NWS continues to suffer from declining earnings and the negative impact of a stronger Aussie dollar.

Scam doldrums

NWS has been experiencing heightened scrutiny amid phone hacking allegations. Pressure on the company has escalated to a political level and some lawmakers are now demanding the deal be blocked.

Allegations of phone hacking and illegal payments at News of the World, one of NWS’s British newspapers, resulted in the paper being shut down.

NWS feels its proposed acquisition will not lead to there being insufficient plurality in news provision in the U.K.

The matter has now been referred to the Competition Commission with immediate effect after the US company withdrew undertakings to satisfy antitrust requirements.

The undertakings included spinning off BSkyB's 24 hour news channel, Sky News, to alleviate concerns over the extent of its influence in the U.K. media landscape.

A decision could take up to 32 weeks but with the current allegations, the matter might be dragged even longer.

Fresh allegations have also seen another one of NWS’s British newspapers, The Sun, come under fire.

Monetising the net

NWS recently announced it will start charging for access to the online version of The Australian newspaper.

Limited content will be available to the public, with full access costing $2.95 a week.

This follows the model News Corp introduced after it purchased the famed Wall Street Journal in 2007.

News Corporation and fellow media giant Fairfax have introduced high quality online versions of their flagship newspapers in the last decade and if the paid access model works with The Australian, it is expected other key newspaper sites across the stables will start charging for their content.

Earnings not newsworthy

In May, NWS advised that third quarter net profit fell 24% from a year earlier to $639 million.

Net income was $639 million (24 cents a share), down from $839 million (32 cents a share) on year.

The result came on the back of a 6% decrease in revenue to $8.26 billion, which NWS attributed to weakness in its filmed entertainment and publishing divisions.

Weighing on the results was a $125 million charge in its publishing division stemming from a legal settlement and declines in the media company's movie and newspapers businesses.

However, the cable division was a bright spot, with operating earnings rising 25% on-year amid stronger advertising revenue.

The poor profit result, which missed analyst estimates, saw NWS shares drop 3.4% on the day.

Looking ahead

NWS seems to be in a world of trouble at the moment following the phone hacking scandal.  It is also being considered among the shares to sell, and has recently been a major underperformer in the Australian stock market.

The company is already facing a loss of revenue through the shutting down of its News of the World newspaper.

Current fears are that the scandal will spread to its other newspapers along with a public and political backlash.

In a world where media is already a tough industry, the last thing NWS needs is a bad reputation.

NWS is currently working on introducing charges to online newspaper access. The latest scandal certainly does not help its cause.

With the proposed BSkyB acquisition in limbo, a deepening scandal and declining earnings, we feel NWS will remain under significant pressure.

A strong Aussie dollar will also add to the company’s demise as its US dollar earnings convert to less AUD.

Receive FREE recommendations for the next 7 Days.

Daily Global Financial Markets Video News July 13 2011

Daily Global Financial Markets Video News July 13 2011

ASX Hot Stocks News Macarthur Coal (MCC)

Macarthur Coal (ASX:MCC) is a coal miner, supplying low volatile pulverized coal injection coal (PCI coal) to the steel mills of Asia, Europe and Brazil as well as some thermal and coking coal.

On 11 July, MCC received a takeover offer from Peabody Energy Corp and ArcelorMittal that values MCC at $4.68 billion.

Peabody offered $15 and $16 for the company in multiple attempts over the last two years, and ArcelorMittal owns 16.07% of the company.

The board makes no recommendation in relation to the indicative proposal so far. It will seek to engage the two companies in relation to the price and terms.

MCC has been one of the hot stocks following the takeover offer, bucking the weakness seen on the Australian share market.

Receive FREE Hot Stocks Recommendations

Daily Global Financial Markets News July 12 2011

Daily Global Financial Markets News July 12 2011

Top Shares News Bradken (BKN)

Bradken (ASX:BKN) is a leading supplier of consumable parts, capital equipment and associated maintenance and refurbishment services to the resources and freight rail industries.

The company’s five divisions are mining products, rail, power and cement, engineered products and industrial.

BKN suffered from a volatile environment over 2008, as the commodities bubble burst and the market worried over demand for BKN’s services.

BKN has seen signs of improvement in 2010 on a turnaround for miners and iron ore prices, improved order intake levels and strength in its Rail division.

Shopping spree

Bradken (BKN) announced two acquisitions for a total consideration of $222 million.

BKN expects the acquisitions to deliver $28 million of additional EBITDA in FY12.

The company will fund the acquisitions from current cash and debt facilities.

The move is in line with BKN’s strategy of globalising its consumable products businesses and building a substantial presence in the world’s major mining regions.

BKN shares finished the day of the announcement up 4%.

Receive FREE Shares Recommendations for the next 7 Days!

Australian Stock Report Launches FX Report

Be part of the foreign exchange phenomenon! Australian Stock Report invites you to register for a FREE 7-day trial of our FX Report.

With trillions of dollars being traded on currency markets around the clock, Australian Stock Report has introduced a fully featured FX Report which provides you;

* Twice daily updates
* A market wrap
* In-depth market commentary
* Short-term trading signals
* Medium-term trade recommendations
* 25% discount to Fast Track FX Workshops

Receive FREE FX Recommendations for the next 7 days!

ASX Buy Stocks Invocare (IVC)

Invocare (ASX:IVC) is the largest funeral, cemetery and crematorium industry operator in Australia and Singapore.

It operates national brands such as White Lady, Simplicity and Singapore Casket.

The company operates a network of 180 funeral homes and 12 crematoria and cemeteries across Australia.

This network of facilities makes IVC the largest participant in the “death care” industry, performing over 20% of the burials in Australia. The majority of other funeral providers are well-established, small family operations.

Though IVC already has a stranglehold on a defensive industry that is certain of future business, it has continued to grow its market share over the last year via acquisitions.

It recently completed its latest acquisition which saw its shares surge as the market cheered the news.

Takeover completed

IVC recently completed the acquisition of Bledisloe Group. Bledisloe is the largest operator in New Zealand and one of the top four in several Australian markets.

It has revenues of approximately $60 million and maintainable EBITDA of approximately $11 million.

Invocare expects Bledisloe’s post synergy annual contribution to its EBITDA result to be approximately $14.4 million.

This move increases IVC’s presence in markets it was previously light on. We feel the acquisition is a good move for IVC going forward.

FREE Daily Buy Stocks Advice

Profits are alive

In February, IVC reported a 43.2% slide in FY10 net profit to $27.4 million.  Excluding the impact of a change in accounting policy, profit increased 11.9% on-year to $34.2 million.

Revenue grew 4.6% to $267.4 million, which was attributable to increased sales of cemeteries and crematoria memorials.

IVC declared a final dividend of 15.25 cents per share.

For the four months to 30 April 2011, total group sales revenue was up 6.5%. Average revenue per funeral was up 5.7% supported by a 4.5% price increase.

The impressive earnings trend looks set to continue as the business continues to engage in earnings accretive investments.

Looking ahead

IVC’s defensive characteristics give it an edged in the current market conditions.

The company is targeting approximately 6%-7% annual revenue growth. Its pillars of growth include favourable demographics (ageing population), consistent annual pricing improvements and market share improvements.

IVC is currently working on prepaid funerals to lock in future market share. The move gives clients guaranteed future service at today’s price.

The company has around $10 million debt headroom following the completion of the Bledisloe takeover.

Unfortunately the number of deaths is a key variable impacting FY results. IVC has no control over this part of the business.

However, with increasing market share, the prepaid service and price increases, we feel IVC will continue to maximise returns.

For Daily Buy Stocks Advice get your FREE Report Trial

Daily Global Financial Markets News July 8 2011

Daily Global Financial Markets News July 8 2011

Australian Gold Stocks News Ramelius Resources (RMS)

Ramelius Resources (ASX:RMS) is a Western Australian-focused unhedged gold producer with mining operations at Wattle Dam near Kambalda and milling facilities at Burbanks near Coolgardie.

Wattle Dam is the group’s cash cow, producing solid amounts of high grade gold at a low cost.

With Wattle’s mine life potentially coming to an end, RMS also has its lucrative Mt Magnet project, which will come into production this year.

RMS is benefitting from its strong operations and boom times for gold. The group is a low-cost operator with no debt and in a strong financial position with $90 million in cash on hand.

Golden production

RMS produced just over 100,000 ounces (oz) of gold from its Wattle Dam gold mine for the full year.

On the back of a solid June quarter, total gold production for the mine was over 200,000 oz, including production from the former open pit of 51,000 oz.

The Mt Magnet project north east of Perth is proceeding with the planned schedule for gold production to begin in January 2012.

RMS currently has $100 million in cash and gold on hand.

The stock will also benefit from a surging gold price.

FREE Daily Gold Trading Advice

Australian Shares News Karoon Gas Australia (KAR)

Karoon Gas Australia (ASX:KAR) is focused on identifying, exploring and developing acreage that is highly prospective for oil and gas.

The company currently has three focus areas - the Browse Basin (Western Australia), Tumbes Basin (Peru) and the Santos Basin (Brazil).

KAR holds a 49% interest in oil and gas exploration permits WA-314-P and WA-315-P in the offshore Browse Basin located 350 km offshore from the North-Western Australian coastline.

The company’s joint venture partner and operator in these projects is ConocoPhillips, the world’s fifth-largest refiner.

Gas gas gas

KAR was one of the best performers of the day, rallying over 6% after receiving environmental approvals to start drilling on its Browse Basin projects.

The company will move on to phase two of its drilling program in the region.

The program will start in the fourth quarter of the year and run for 18 months to two years.

Click for Daily Trading Recommendations

Daily Global Financial Markets News July 6 2011

Daily Global Financial Markets News July 6 2011

Mining Shares News Murchison Metals (MMX)

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

The group boasts a strategic alliance with Mitsubishi Development, which aids MMX’s balance sheet by making substantial equity payments plus debt support.

MMX’s boasts world class businesses, including a 50% shareholding in Crosslands Resources, a 50% stake in Oakajee Port & Rail, and 100% ownership of the Rocklea Iron Ore Project.

The group’s three major projects – all located in Western Australia – are the Rocklea, Jack Hills and Oakajee prospects.

In addition to these investments, MMX is actively exploring growth opportunities in iron ore, coal and manganese.

Cost blowout and delay

MMX yesterday announced that costs at its Oakajee iron ore export project have increased by more than a third to $5.94 billion.

Murchison Metals jointly manages the project with Japan’s Mitsubishi Corp. First ore from the project won’t be delivered until 2015.

The company’s shares finished the day down 2%. Following broker downgrades, MMX extended these losses today finishing the day down 23%.

Get daily Mining Shares Advice

Daily Global Financial Markets News July 5 2011

Daily Global Financial Markets News July 5 2011

Rare Earth Shares News Lynas Corporation (LYC)

Lynas Corporation (ASX: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.

Mt Weld is also the world’s largest deposit outside China, with supply due to begin in 3Q11.

Though Rare Earths demand dipped in 2009, prices are now recovering and current resources are struggling to maintain production.

LYC benefits from its strong ties to Rare Earths resources (whilst potential competitors face Rare Earths mineral scarcity) and as growth forecasts surpass new supply coming to the market.

Rare loss

LYC shares plunged on Friday after its Malaysia plant suffered a setback.

Malaysia’s government has put restrictions on the plant until the company complies with recommendations in a report commissioned by the International Atomic Energy Agency.

LYC came out with a statement denying any unusual construction difficulties and claiming its plant is being built to international standards.

A selloff by spooked investors saw the stock finish the session down over 11%.

Free Trading Recommendations

Daily Global Financial Markets News July 4 2011

Daily Global Financial Markets News July 4 2011

Shares to Buy News Regis Resources Limited (RRL)

Regis Resources Limited (ASX: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.

Regis Resources 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.

Returning to profit

The commencement of operations at the Moolart Well Gold Mine saw RRL report a profit after tax of $13.52 million for the half year ended 31 December.

This equates to an earnings per share of 3.23 cents.

The result was a huge improvement from a loss of $17 million the previous year.

Gold sales for the period came in at $42.481 million. This was from the sale of 24,207 oz at an average delivery price of $1,408 per oz.

RRL has cash and gold bullion holdings of $21.5 million.

Gold production for its first full quarter of operation (up to December 2010) was 23,851 oz. A pre-royalty cash cost of $450 per oz was achieved.

Resource update

RRL recently announced a reserve increase at Garden Well to 1.66 million ounces (moz) contained gold.

Even more impressive is the fact that 90% of the reserve at Garden Well is within 200 metres of surface and 99% of the reserve is within 250 metres of the surface.

This update increases RRL’s total JORC compliant reserves to 2.5 moz of gold.

RRL 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

RRL is moving towards commencement of a second stand alone mining operation at Garden Well in the September 2011 quarter.

Gold has gained significantly this year, reaching fresh record highs last month as global economic uncertainty, natural disasters and tension in North Africa and the Middle East pushes investors towards the safety of the shiny metal.

The metal printed highs of around US$1577 last month and continues to hold its ground well above US$1500.

With plenty in the reserve growth pipeline and rising gold prices, we feel RRL has plenty of upside potential.

Click for more Shares to Buy Advice

Daily Global Financial Markets News July 1 2011

Daily Global Financial Markets News July 1 2011