Wesfarmers Ltd. owns retail chains, operates mines, writes insurance, manufactures and distributes industrial products, manufactures fertilizers and chemicals, and distributes liquefied petroleum gas and medical and industrial gases. Blue chip stock Wesfarmers said today at a strategy briefing that third-quarter sales at its Bunnings home improvement stores were up 4.7% on year. The company also said that comparable store growth for Bunnings climbed 2.6% over the same period. Wesfarmers’ Officeworks chain sales in the third quarter were up 2.5%. Management said market conditions remained challenging, with competitive pressure on sales and margins and concerns about consumer sentiment continuing.May 30, 2012
Wesfarmers (WES) Bunnings Up 4.7% For Third Quarter
Wesfarmers Ltd. owns retail chains, operates mines, writes insurance, manufactures and distributes industrial products, manufactures fertilizers and chemicals, and distributes liquefied petroleum gas and medical and industrial gases. Blue chip stock Wesfarmers said today at a strategy briefing that third-quarter sales at its Bunnings home improvement stores were up 4.7% on year. The company also said that comparable store growth for Bunnings climbed 2.6% over the same period. Wesfarmers’ Officeworks chain sales in the third quarter were up 2.5%. Management said market conditions remained challenging, with competitive pressure on sales and margins and concerns about consumer sentiment continuing.
May 22, 2012
GrainCorp 1H FY12 Net Profit $133.7 million
[caption id="attachment_22206" align="alignleft" width="99" caption="GrainCorp 1H FY12 Net Profit $133.7 million"]
[/caption] GrainCorp Limited provides grain industry related services in Australia. The Group provides grain and bulk commodities handling and storage for growers, end users and marketing organizations. The Group also operates grain pools, provides transportation services for bulk commodities along with farming products and flour milling and mixing services. Consumer staple stock GrainCorp reported a 1H FY12 net profit $133.7 million, a 52.5% surge on the previous corresponding period. The group said that the result was largely driven by higher earnings from storage, handling and ports activities. GrainCorp lifted its net profit guidance to a range $185 million to $205 million from 165 million to $185 million previously. CEO Alison Watkins said “the strong forward program of export bookings at GrainCorp's ports, coupled with improving malt sales and expected earnings, gives the company sufficient confidence to upgrade the earnings guidance provided to the market in February.” To Access FREE Daily Trading Recommendations, Click Here!
[/caption] GrainCorp Limited provides grain industry related services in Australia. The Group provides grain and bulk commodities handling and storage for growers, end users and marketing organizations. The Group also operates grain pools, provides transportation services for bulk commodities along with farming products and flour milling and mixing services. Consumer staple stock GrainCorp reported a 1H FY12 net profit $133.7 million, a 52.5% surge on the previous corresponding period. The group said that the result was largely driven by higher earnings from storage, handling and ports activities. GrainCorp lifted its net profit guidance to a range $185 million to $205 million from 165 million to $185 million previously. CEO Alison Watkins said “the strong forward program of export bookings at GrainCorp's ports, coupled with improving malt sales and expected earnings, gives the company sufficient confidence to upgrade the earnings guidance provided to the market in February.” To Access FREE Daily Trading Recommendations, Click Here!May 21, 2012
James Hardie Industries SE (JHX) 20% Increase In Yearly Profit
[caption id="attachment_22186" align="alignleft" width="209" caption="JHX up 20% profit on last year"]
[/caption] James Hardie Industries SE manufactures building products, including fiber cement siding, backerboard, and pipe. The company has significant operations in the US, but is listed on the Australian Stock Exchange. James Hardie has reported a US$140.4 million full year operating profit, a 20% rise on year. The result was slightly ahead of analyst expectations of US$137.7 million. Sales for the full year rose by 6% to US$1.24 billion. CEO Louis Gries described operating earnings for the full year as solid with revenue up in Europe and the U.S. but with some rises in some costs constraining profitability. The company declared a final dividend of US$0.38 a share. To Access FREE Daily Trading Recommendations, Click Here!
[/caption] James Hardie Industries SE manufactures building products, including fiber cement siding, backerboard, and pipe. The company has significant operations in the US, but is listed on the Australian Stock Exchange. James Hardie has reported a US$140.4 million full year operating profit, a 20% rise on year. The result was slightly ahead of analyst expectations of US$137.7 million. Sales for the full year rose by 6% to US$1.24 billion. CEO Louis Gries described operating earnings for the full year as solid with revenue up in Europe and the U.S. but with some rises in some costs constraining profitability. The company declared a final dividend of US$0.38 a share. To Access FREE Daily Trading Recommendations, Click Here!May 17, 2012
CBA $1.75 billion Cash Profit In Third Quarter
[caption id="attachment_22161" align="alignleft" width="300" caption="CBA $1.75 billion Cash Profit In Third Quarter"]
[/caption] Commonwealth Bank of Australia provides banking, life insurance and related services for individuals, small businesses and medium sized commercial enterprises. The Bank provides corporate and general banking, international financing, institutional banking and stock broking and funds management such as superannuation product. Financial Stock CBA reported a $1.75 billion cash profit in the third quarter, a 3% rise from the prior corresponding period. The bank did note that subdued credit demand and high funding costs continued to eat into its profit margins. CEO Ian Narev said in a statement “consistent with the uncertain outlook that we indicated in the Group's half-year results in February, we have retained our conservative business settings, including tight expense control, a conservative funding profile and strong provisioning levels” For FREE Daily Trading Recommendations, Click Now!
[/caption] Commonwealth Bank of Australia provides banking, life insurance and related services for individuals, small businesses and medium sized commercial enterprises. The Bank provides corporate and general banking, international financing, institutional banking and stock broking and funds management such as superannuation product. Financial Stock CBA reported a $1.75 billion cash profit in the third quarter, a 3% rise from the prior corresponding period. The bank did note that subdued credit demand and high funding costs continued to eat into its profit margins. CEO Ian Narev said in a statement “consistent with the uncertain outlook that we indicated in the Group's half-year results in February, we have retained our conservative business settings, including tight expense control, a conservative funding profile and strong provisioning levels” For FREE Daily Trading Recommendations, Click Now!May 15, 2012
Coca-Cola Amital Expects First-Half Net Profit To Grow By 4%-5%
[caption id="attachment_22146" align="alignleft" width="300" caption="Coca-Cola Amital Expects First-Half Net Profit To Grow By 4%-5%"]
[/caption] Coca-Cola Amatil Limited manufactures, distributes and sells carbonated soft drinks along with still and mineral waters, fruit drinks, ready-to-drink coffee and tea and flavored milk drinks. The Company also rents and services commercial refrigeration equipment to food/beverage manufacturers. The company is listed on the Australian Stock Exchange under CCL. Coca-Cola Amital has announced that it expects its first-half net profit to grow by around 4%-5% for FY12, before significant items. Managing Director Terry Davis said in a statement “Given the difficult trading and consumer environment we are pleased with the operating performance in the year to date.” Mr Davis also made reference to very strong growth in the groups Indonesia and PNG businesses.
[/caption] Coca-Cola Amatil Limited manufactures, distributes and sells carbonated soft drinks along with still and mineral waters, fruit drinks, ready-to-drink coffee and tea and flavored milk drinks. The Company also rents and services commercial refrigeration equipment to food/beverage manufacturers. The company is listed on the Australian Stock Exchange under CCL. Coca-Cola Amital has announced that it expects its first-half net profit to grow by around 4%-5% for FY12, before significant items. Managing Director Terry Davis said in a statement “Given the difficult trading and consumer environment we are pleased with the operating performance in the year to date.” Mr Davis also made reference to very strong growth in the groups Indonesia and PNG businesses.May 11, 2012
Metcash: Stocks To Watch
Metcash Limited (MTS) is a marketing and distribution company operating in the food and other consumer goods sectors. MTS is divided into four business units: IGA Distribution, Campbell’s Wholesale, Australian Liquor Marketers and Mitre 10. All of the business units are full owned by MTS with the exception of Mitre 10, which is 50.1% owned. Last year, MTS completed a takeover of New South Wales supermarket chain, Franklins. The deal was finalised after the Full Court dismissed the ACCC’s appeal to block the merger on the 30th of November. Margin squeeze The domestic supermarket industry is dominated by Woolworths and Wesfarmers-owned Coles, with MTS coming in at a distant third. Significant price deflation has crimped profit margins across the industry, but MTS has been hit harder than its bigger rivals. Based on semi-annual figures, MTS’ EBITDA margin has contracted over 20% between November 2009 and November 2011. In that same time, Wesfarmers and Woolworths have seen their EBITDA margins rise 5.4% and 1.7%, respectively. There may be many other reasons behind the discrepancy, but it is apparent that MTS is struggling to keep up with the aggressive discounting being implemented by Wesfarmers and Woolworths. Business restructuring In early April, MTS shocked investors by announcing a $34 - $43 million restructuring charge related to the consolidation of its businesses and the closure of 15 regional Campbells Cash & Carry (Campbells) branches. Additionally, MTS will book a $75 - $90 million non-cash restructuring charge related to the underperformance of two JVs in Queensland. The write-downs followed a disappointing 1H12 for MTS, in which its underlying profit rose just 1.4% on-year to $116.6 million. Campbells was the most disappointing business unit, with EBITA decreasing 35% to $16 million and EBITA margin dropping 73 basis points (bps) to 1.2%. IGA Distribution - the largest of all the business units – saw its EBITA rise only 0.8% and EBITA margin slipping 5bps to 4.73%. Outlook Conditions for supermarket retailers like MTS have been terrible over the past two years and things are unlikely to turn around in a hurry. MTS is in the unfortunate position of having to contend with two industry behemoths in Coles and Woolworths. [caption id="attachment_22126" align="alignleft" width="150" caption="Metcash: Stocks To Watch"]
[/caption] These companies have been forced into aggressive price discounting in order to attract customer sales, and this has come at a huge cost to MTS’ margins. In response, MTS has looked to streamline its business through consolidation and the closure of its Campbells branches. However it will be a stock to watch as there are questions as to whether more write-downs may be needed down the track if trading conditions deteriorate further and/or price deflation continues to cut into MTS’ margins. Click Now for FREE Trading Recommendations
[/caption] These companies have been forced into aggressive price discounting in order to attract customer sales, and this has come at a huge cost to MTS’ margins. In response, MTS has looked to streamline its business through consolidation and the closure of its Campbells branches. However it will be a stock to watch as there are questions as to whether more write-downs may be needed down the track if trading conditions deteriorate further and/or price deflation continues to cut into MTS’ margins. Click Now for FREE Trading RecommendationsMay 8, 2012
Leighton (LEI) Reaffirms Half Year Guidance
[caption id="attachment_22091" align="alignleft" width="150" caption="Leighton (LEI) Reaffirms Half Year Guidance"]
[/caption] Leighton Holdings Limited offers a variety of project development and contracting services to public and private sector clients in the Asia-Pacific region. Leighton provides design management, civil engineering construction, building, mining, process engineering, telecommunications, waste management and infrastructure operation and maintenance and property development and management. Leighton is listed on the Australian Stock Exchange and is a member of the S&P/ASX 200. Leighton reaffirmed its guidance of $100- $150 million in underlying net profit for the six months to 30 June 2012. The group also confirmed its full year profit of $400-$450 million. The company noted that for the March quarter it expects a loss of $80 million due the performance of Airport Link and the Victorian Desalination Project. CEO Hamish Tywhitt said that “the Leighton Group’s diversification strategy, underlying strength and positive outlook is reflected in our work in hand which remains around $45 billion with a further $11.5 billion that runs out beyond five years” To Access FREE Daily Trading Recommendations, Click Here!
[/caption] Leighton Holdings Limited offers a variety of project development and contracting services to public and private sector clients in the Asia-Pacific region. Leighton provides design management, civil engineering construction, building, mining, process engineering, telecommunications, waste management and infrastructure operation and maintenance and property development and management. Leighton is listed on the Australian Stock Exchange and is a member of the S&P/ASX 200. Leighton reaffirmed its guidance of $100- $150 million in underlying net profit for the six months to 30 June 2012. The group also confirmed its full year profit of $400-$450 million. The company noted that for the March quarter it expects a loss of $80 million due the performance of Airport Link and the Victorian Desalination Project. CEO Hamish Tywhitt said that “the Leighton Group’s diversification strategy, underlying strength and positive outlook is reflected in our work in hand which remains around $45 billion with a further $11.5 billion that runs out beyond five years” To Access FREE Daily Trading Recommendations, Click Here!May 4, 2012
Weekly Buy Recommendations: Crown (CWN)
[caption id="attachment_22071" align="alignleft" width="91" caption="Weekly Buy Recommendations: Crown (CWN)"]
[/caption] Crown (CWN) manages a variety of gaming and entertainment facilities, including, bars, restaurants, nightclubs, cinemas and retail outlets. It also develops hotels and conference centre facilities. The company wholly owns and operates two integrated resorts; the Crown Entertainment Complex in Melbourne and Burswood Entertainment Complex in Perth. Mr James Packer currently owns a 48.09% stake in the group. CWN also has an interest in several different projects including:
The company also recently increased its stake in Echo Entertainment to 10%. Latest Results CWN’s 1HFY12 results were impressive considering the challenging consumer environment. The company reported normalised NPAT of $211.6 million, which was an increase of 28% on the prior corresponding. CWN’s Australian casinos reported revenue growth of 10.7% to $1,387.9 million, with normalised EBITDA up 5.2% to $362.4 million. A breakdown of the two main facilities showed that Crown Melbourne’s normalised EBITDA added 3.7% to $269.4 million, whilst Burswood EBITDA gained 8.7% to $116.6 million. The company declared an interim dividend of 18 cents, which equates to a health yield of over 4%. CMJ and Echo Entertainment Today it was reported that James Packer will sell his controlling stake in Consolidated Media Holdings (CMJ). Whilst it is just a rumour, a takeover is looking like happening sooner rather than later given CWN’s increased 10% stake in Echo Entertainment (EGP). EGP’s assets include Sydney’s Star City and Jupiter’s Hotel and Casino in Queensland; however it is Star City that would be the most appealing to CWN. Star City is CWN’s major, if not only, rival in the highly coveted VIP segment. A merger of the two companies would alleviate any pressure aggressive competition would have on the segment’s margins. Looking forward CWN”s results speak for themselves, they were able to grow earnings in a tough consumer environment. The reported move of James Packer selling his controlling interesting in CMJ has already sparked further takeover rumors in regards to EGP. Mr. Packer also increased his own personal stake in CWN from 46% to 48.1%, showing his confidence in the company. We believe that the takeover of EGP would be seen as a positive move for CWN. As such we think CWN is a stock to watch in the coming months. Click Now for FREE Trading Recommendations
[/caption] Crown (CWN) manages a variety of gaming and entertainment facilities, including, bars, restaurants, nightclubs, cinemas and retail outlets. It also develops hotels and conference centre facilities. The company wholly owns and operates two integrated resorts; the Crown Entertainment Complex in Melbourne and Burswood Entertainment Complex in Perth. Mr James Packer currently owns a 48.09% stake in the group. CWN also has an interest in several different projects including: - 33.65% interest in Melco Crown entertainment, which is based in Macau
- 50% interest in online gambling site Betfair
- 24.5% interest in Cannery Casino Resorts in the US
- 50% interest in Aspers Holdings (UK) which operates three regional casinos in Newcastle Swansea and Northampton
The company also recently increased its stake in Echo Entertainment to 10%. Latest Results CWN’s 1HFY12 results were impressive considering the challenging consumer environment. The company reported normalised NPAT of $211.6 million, which was an increase of 28% on the prior corresponding. CWN’s Australian casinos reported revenue growth of 10.7% to $1,387.9 million, with normalised EBITDA up 5.2% to $362.4 million. A breakdown of the two main facilities showed that Crown Melbourne’s normalised EBITDA added 3.7% to $269.4 million, whilst Burswood EBITDA gained 8.7% to $116.6 million. The company declared an interim dividend of 18 cents, which equates to a health yield of over 4%. CMJ and Echo Entertainment Today it was reported that James Packer will sell his controlling stake in Consolidated Media Holdings (CMJ). Whilst it is just a rumour, a takeover is looking like happening sooner rather than later given CWN’s increased 10% stake in Echo Entertainment (EGP). EGP’s assets include Sydney’s Star City and Jupiter’s Hotel and Casino in Queensland; however it is Star City that would be the most appealing to CWN. Star City is CWN’s major, if not only, rival in the highly coveted VIP segment. A merger of the two companies would alleviate any pressure aggressive competition would have on the segment’s margins. Looking forward CWN”s results speak for themselves, they were able to grow earnings in a tough consumer environment. The reported move of James Packer selling his controlling interesting in CMJ has already sparked further takeover rumors in regards to EGP. Mr. Packer also increased his own personal stake in CWN from 46% to 48.1%, showing his confidence in the company. We believe that the takeover of EGP would be seen as a positive move for CWN. As such we think CWN is a stock to watch in the coming months. Click Now for FREE Trading Recommendations
May 1, 2012
Alesco Corporation Takeover Offer from Dulux Group
[caption id="attachment_22051" align="alignleft" width="150" caption="Alesco Corporation Takeover Offer from Dulux Group"]
[/caption] Alesco Corporation Limited is small cap stock that is involved in the marketing and distribution of industrial products to the building and renovations, construction and mining, scientific and testing and automotive industries. The Company distributes products such as cabinets and panelling, earthmoving and truck tires, garage door openers and laboratory testing equipment. Alesco Corporation has received a $188.4 million takeover offer from Dulux Group. Dulux Group currently holds almost 20% of Alesco shares and has offered $2.00 a share for each remaining share. The offer represents a 42.9% premium from Alesco’s last closing price and will only proceed if the Dulux gain 90% of share on issue. To Access FREE Daily Trading Recommendations, Click Here!
[/caption] Alesco Corporation Limited is small cap stock that is involved in the marketing and distribution of industrial products to the building and renovations, construction and mining, scientific and testing and automotive industries. The Company distributes products such as cabinets and panelling, earthmoving and truck tires, garage door openers and laboratory testing equipment. Alesco Corporation has received a $188.4 million takeover offer from Dulux Group. Dulux Group currently holds almost 20% of Alesco shares and has offered $2.00 a share for each remaining share. The offer represents a 42.9% premium from Alesco’s last closing price and will only proceed if the Dulux gain 90% of share on issue. To Access FREE Daily Trading Recommendations, Click Here!
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