- ASX 200 closes down 29 to 6004
- High 6024 Low 5994.
- North Korean talks back on?
- Miners and energy stocks weak.
- Oil falls in Asian trade.
- Banks sold off again.
- AUD steady at 75.72c
- Bitcoin falls again to US$7394
- AUD Gold weaker at $1298.
- US futures down 53. Memorial Day holiday.
- Asian markets slightly firmer with Japan up 0.04% and China CSI 300 up 0.68%
Movers and Shakers
- RWC +26.63% successful institutional offer.
- TLS -1.05% gets first rating downgrade in 12 years from S&P.
- IOF +11.23% takeover bid from Blackstone.
- APO +7.66% profit upgrade.
- DMP +3.78% shorts covering.
- ALL -1.76% profit-taking.
- SGR -3.02% strategy day and earnings guidance.
- SWM +4.03% on Joyce coup.
- MTS -17.66% earnings guidance.
- ISU +16.36% new substantial shareholder
- BPT -9.59% SXY -9.09% oil price falls.
- MLX-5.29% copper price falls.
- YOJ +17.24% broker report.
- BLA +3.52% back in money raising mode to fund and Indonesian fintech.
- Speculative stock of the day: Venus Metals (VMC) +12.00% following a transformational deal to purchase the historic YOuanmi Gold Mine. The mine has produced a 667k oz of Au grading 5.42g/t before its closure in 1997.
- Biggest risers –RWC, IOF, APO, DFM, MOE, NHC and VOC.
- Boral (BLD) +0.64% Signed an agreement with Mirvac (MGR) to include an additional 278 ha of land in its Donnybrook development. This is expected to contribute $9m to FY18 EBITDA, $9-$14 million per annum of EBITDA through to FY2021, and again between FY2025 and FY2027. Further significant earnings are expected from FY2028 to FY2037 as the land is progressively developed. Property earnings are now expected to be at the high end of guidance range of $55-$65 of EBITDA for FY18.
- 3PL Learning (3PL) +3.83% Sold its 40% stake in Learnosity for $25m. This represents a loss of $24.8m. The company said it will use funds to pay down debts and strengthen the balance sheet.
- Cimic Group (CIM) +0.36% A group member has signed a 5-year operations and maintenance contract with New Century Resources for its Century processing plant, pipeline, and port facilities.
- Resolute Mining (RSG) –1.27% Bought a 15% stake in Orca for around $22.5m. The companies will collaborate on new projects in emerging Sudan gold fields.
- Independence Group NL (IGO) –0.21% Has sold its Jaguar Operation in WA to a subsidiary of Washington H. Soul Pattinson for $73.2m as the potential future discovery does not align with the company’s non-core business strategy.
- Fisher & Paykel (FPH) –0.57% Record FY18 result. NPAT up 12% YoY to NZ$190.2m, operating revenue up 10% YoY to NZ$980.8m with the large majority coming from reoccurring items. The full-year dividend has increased 9% YoY to 21.25c. The company said it is well positioned to meet growing global demand and is increasing CAPEX for FY19 to between NZ$160-NZ$170m to increase production capacity and progress building programmes in NZ and Mexico. They expect FY19 revenue to be NZ$1.05bn and NPAT to by NZ$210m.
- Metcash (MTS) -17.66% Revised its sales forecasts now expecting a sales decline of 1.2% in total sales and a 3.6% decline in wholesale sales excluding tobacco. FY18 earnings for supermarkets and convenience are expected to be in line with year-end April 18. MTS also revealed that Drakes in South Australia would not be resigning to the MTS supply chain. There is no change to Queensland yet. The company is also planning a potential new purpose-built distribution centre in South Australia.
- Investa Office (IOF) +11.23% has received an unsolicited, non-binding proposal from Blackstone Singapore to acquire IOF by way of a trust scheme. The offer represents a 515c bid and a 13.2% premium.
- APN Outdoor (APO) +7.66% Guidance for underlying EBITDA is now expected to be between $93m-$96m, first, half revenue is mid to high single digits and FY18 CapEx is expected to be between $25m-$30m.
- Nothing today
ASIAN MARKETS NEWS
- SoftBank and Swiss Re have confirmed the collapse of talks over the Japanese company taking a minority stake in the reinsurance group.
EUROPE AND US MORNING HEADLINES
UK and US holiday.
- Moody’s has put Italy’s rating on review for a possible downgrade following the collapse of coalition talks and a new election.
- Spain and Italy in focus on political uncertainty.
- Media reports that CYB may increase its bid for Virgin Money.
- Smiths Group has opened talks with US companies over a potential GBP£6bn deal to merge its healthcare operations.
- So much for US tax cuts stimulating investment. Most companies are just increasing dividends and stock buy backs. Now for the first time in history returns to shareholders has risen above US$1 trillion on a one year rolling basis.
A circus owner ran an ad for a lion tamer, and two young people showed up. One was a good-looking lad in his mid-twenties, and the other was a gorgeous blonde about the same age.
The circus owner told them, “I’m not going to sugarcoat it. This is one ferocious lion. He ate my last tamer, so you guys better be good or you’re history. Here’s your equipment: chair, whip, and a gun. Who wants to try out first?”
The girl said, “I’ll go first.” She walked past the chair, the whip, and the gun and stepped right into the lion’s cage. The lion started to snarl and pant and began to charge her.
About half way there, she threw open her coat revealing her beautiful naked body.
The lion stopped dead in his tracks, sheepishly crawled up to her, and started licking her ankles. He continued to lick her calves, kissed them, and then rested his head at her feet.
The circus owner’s mouth was on the floor. He said, “I’ve never seen a display like that in my life.” He then turned to the young man and asked, “Can you top that?”
The young man replied, “No problem, just get that lion out of the way.”
And finally finally…..
I got a German porno movie the other day. It has subtitles, which is great cause, otherwise, I would have had no idea what was going on.
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