ASX 200 flatlines down 7 at 6850 (0.1%). Super Thursday of Results. Dow Futures up 36 points. All about the results today with plenty happening but not at the index level. Some of the biggies today in TLS up 2.5% on dividend and mobile tower optimism. AMP down 11.0%, underlying profit missed consensus and AUM in Australian wealth management division down 8%. No dividend. Ares Management have also pulled out of any bid. URW announced a suspension of dividends until 2023 and a pledge to get out of the US falling 3.9%. VTG fell hard down 27.6% as TLS will take back its mobile shops. MFG slipped 4.4%, dividend lifted, market seemingly concerned with lower performance fees. NCM the standout up 4.0%, first-half underlying profit well ahead of consensus talks new dividend policy. DOW cheers, up 1.3%, despite lack of guidance and a 14% drop in net profit. AGL up 1.2% on results $2.3bn in writedowns as expected. NEA down 7.3% on a short attack from Jcap. CIM down another 3.3% on a broker downgrade. Tech slipped led by APT off 2.3% and XRO down 2.2%. Industrials eased as COL fell 1.1% and REA down 1.2%. Miners set sail higher on commodity price rise, BHP up 0.9% and RIO up 1.1%. Nothing in economic news. 10-year yield slipped slightly to 1.19% as Asian markets took early baths or were closed for Lunar New Year.

Today’s Highlights

  • ASX 200 flatlines down 7 to 6850 (0.1%)
  • High 6876 Low 6837. Narrow range again.
  • Big Bank Basket firms to $159.28
  • All Tech Index down 1.65%. APT down 2.3%
  • Dow Futures up 36 points.
  • Gold flat at AUD$2381.
  • 10-year yield slips to 1.19
  • AUD heading higher at 77.47c
  • Bitcoin steady at US$46625.
  • Asian markets affected by Lunar New Year holidays. Japan up 0.2%.

MARCUS TODAY TEAM INSIGHTS

MARCUS STRATEGY – Predictably dull research following the CBA results yesterday. Looks like the sector may have done its dash for the moment. A few more results out today, with disappearing dividends the theme of the day for some perpetual poor performers. The iron ore price keeps pushing higher. Today we have a piece on “Great Correlations” – explaining why there is little point analysing the company fundamentals or analyst target prices on resources stocks because they quite simply move when the underlying commodity prices move. Makes for a fabulous trading sector. The charts need to be seen to be believed. READ MORE

HENRY’S TAKE – The ‘Stonks’ have it. A look at some Z1P analysis courtesy of Facebook. Plus, cannabis is back, in the US and elsewhere, it is going gangbusters. Couple to keep an eye on here and some links to yesterday’s Ausbiz appearances talking CXL and IME with the EquityMates guys and ten stocks with Andrew Wielandt from DP Wealth. Ask the Analyst Friday at 5 pm. So far stocks in focus ADO, EMN and DSE. READ MORE

 

STOCKS

  • ASX -1.75% results and new chairman.
  • TLS +2.52% dividend and mobile tower plan cheers.
  • AMP -11.04% Ares walks.
  • NEA -7.30% trading halt – short seller attack from JCapital.
  • JMS -5.71% Juno IPO in progress.
  • MFG -4.42% performance fee disappoints.
  • VTG -27.56% Telstra taking back Mobile business.
  • RHY -9.00% clinical trial site expansion.
  • WBT -7.06% sell off continues.
  • MYQ +22.73% recent response to ASX query.
  • TEK +1.25% slumber disturbed briefly.
  • AKP +9.63% 17,000 shares traded.
  • LSF +1.46% good profit result.
  • SZL +2.76% new funding facility in US.
  • INA +0.56% new debt facility.
  • MSB +1.56% not great news on back pain trial but bulls will take anything.
  • Z1P +0.75% gives up early momentum.
  • GUD +1.33% profits rise on Jobkeeper.
  • Speculative Stock of the Day: Bard1 Life Sciences (BD1) +114.09% after outstanding subB2M ovarian cancer test data. Significant volume.
  • Biggest Winners: 360, AVZ, LTR, MMM, DEG, NCM and EHL
  • Biggest Losers: AMP, PLL, NEA, NAN, VUL, CEN and JMS.

TODAY

  • AMP (AMP) -11.04% FY underlying profit $295m vs consensus $318.4m and year-ago $439m. Assets under management (AUM) in Australian wealth management (down 8%) and AMP Capital (down 7%), reflecting volatile investment markets and net cash outflows, which included the Australian Government’s early release of super program $1.8bn. No dividend. Ares does not intend to proceed with the 185c offer, but will engage with AMP on its portfolio review.
  • Crown Resorts (CWN) +2.45% CEO Barton and director Demetriou reportedly resisting calls to stand down.
  • Westpac’s (WBC) +0.27% $11bn automobile loan portfolio supposedly seeing interest from Cerberus Capital Management, amongst others. The article adds,a new owner may find it hard to replicate Westpac’s low cost of capital (4-5%).
  • Telstra Corp. (TLS) +2.52% H1 profit attributable to equity holders $1.10bn vs year-ago $1.14bn. Revenue (excluding finance income) $10.98bn. Underlying EBITDA $3.32bn vs year-ago $3.88bn and guidance of $3.32bn. Fully-franked interim dividend of 8cps. FY Guidance: Total Income $22.6-23.2bn vs prior guided $23.2-25.1bn. Underlying EBITDA $6.6-6.9bn vs prior guided $6.5-7.0nb. The board also said it expected to pay a fully-franked final dividend of 8 cents per share, bringing the total dividend for FY21 to 16 cents per share. To transition to full ownership for all of its branded retail stores across Australia. More than 80% of T22 milestones are now delivered or on track to be delivered. The group restructure to be completed by the end of calendar year 2021.
  • Charter Hall Social Infrastructure REIT (CQE) -3.40% H1 operating EPS $0.08 vs year-ago $0.085. Statutory profit $57.8m vs year-ago $49.0m. Net revaluation gains $25.3m vs year-ago $21.3m. Revenue $45.1m vs year-ago $42.6m. Net property income $24.4m vs year-ago $31.8m. Operating income $29.1m vs year-ago $25.5m.
  • Downer EDI (DOW) -1.31% H1 underlying profit $119.1m vs consensus $96.2m. Revenue from ordinary activities $5.79bn vs consensus $6.44bn. Underlying EBITA $221m vs consensus $220.2m. Interim dividend 9c/share (unfranked). Outlook: Strategy is to focus on its Urban Services businesses – Transport, Utilities, Facilities and Asset Services. These Urban Services businesses have work-in-hand of $36.2bn and it is expected that demand will remain strong due to continuing investment by both governments and blue-chip industrial companies.
  • Newcrest Mining (NCM) +4.05% H1 underlying Net Profit after tax US$553.0m vs consensus US$487.0m; new dividend policy. Reports H1: Revenue US$2.17bn vs consensus US$2.16bn. EBITDA US$1.15bn vs consensus US$1.03bn. Free cash flow US$439.0m vs year-ago -US$729.0m. New dividend policy increases the target % of free cash flow to be paid in dividends to 30-60%. Interim dividend 15 cents per share, fully franked. Outlook: Group gold production is expected to be towards the upper end of the guidance range. Group AISC expenditure guidance for FY21 is expected to be around the top end of the original guidance range. Commenced construction of the box cut for the exploration decline at its Red Chris mine in British Columbia, following receipt of the necessary regulatory approvals.
  • AGL Energy (AGL) +1.25%H1 underlying Net Profit after tax $317m vs year-ago $432m. HY results: Statutory Profit after tax (PAT) -$2,287m. This included the $2,686m in charges associated with onerous contract provisions, an increase in environmental restoration provisions and other asset impairments. FY21 Guidance: Maintains Underlying PAT $500-580m. The FY21 Underlying PAT range includes the expected $80m to $100m after tax benefit from insurance proceeds which will not be repeated in FY22. Underlying EBITDA $1,585-1,845m. AGL continues to expect FY21 operating costs to be broadly flat on FY20.
  • Transurban Group (TCL) -0.67% H1 proportional EBITDA $840m vs consensus $963.6m. Reports H1: Statutory Net Profit after tax -$448m vs year-ago $80m. Proportional revenue $1.22bn vs year-ago $1.45bn. Free cash $467m vs year-ago $927m. Interim dividend of A$0.15/security. Outlook: FY21 distribution expected to be in line with Free Cash, excluding Capital Releases. Traffic Update: December quarter traffic ADT performance (17.8%) y/y: Sydney +8.7% to 908K trips, Melbourne (47.1%) to 458K trips, Brisbane (5.8%) to 398K trips, North America (29.5%) to 110K trips.
  • ASX (ASX) -1.75% H1 Net Profit after tax $241.8m vs year-ago $250.4m. Holliday-Smith will be succeeded as Chairman by current independent non-executive director Damian Roche. Reports H1: Operating revenue $470.5m vs consensus $456.5m. EBITDA $344.4m vs year-ago $340.5m. Interim dividend A$1.124/share (fully franked). Outlook: H2 FY21 unlikely to experience the extreme volatility of H2 FY20.
  • GrainCorp (GNC) +0.86% guides FY21 underlying Net Profit after tax (NPAT) $60-85m vs year-ago -$16m and consensus $61.7m. FY21 guidance: Underlying NPAT guidance includes the maximum payment of $70m, payable by GrainCorp, under the Crop Production Contract. Underlying EBITDA in the range of $230-270m vs year-ago $108m. Combined intake across harvest has totalled 13.8m tonnes of receivals year-to-date, eclipsing the 12.9m tonnes of receivals at the same stage during the last bumper harvest in 2016/17.
  • Senex Energy (SXY) +1.41% reiterates guidance at investor presentation. Guidance: Commencement of dividends from FY22. Dividend policy to target 20-30% payout of free cashflow. Targeting annual production of >10 million barrels of oil equivalent (60 Petajoules) by end FY25.
  • Magellan Financial Group (MFG) -4.42% H1 adjusted net income $213.1m vs consensus $209.8m. Total revenue and other income $327.1m vs consensus $330.2m. Crystallised performance fees before tax $12.4m vs year-ago $41.7m. Interim DPS 97.1c vs year-ago 92.9c. Net tangible assets per share 536c vs 488c year ago. The Group saw a 9% growth in average FUM over the previous corresponding period, to $100.9bn (average FUM of $92.8bn for the six months ended 31 December 2019).

ECONOMIC NEWS

  • Citi sees Brent hitting US$70 by end of 2021.

CV19 NEWS

  • World Health Organization investigators have identified possible Covid-19 cases that appeared two months before the disease was identified, Dow Jones reported.
  • Vaccine Tracker: 152m doses. 5.64m doses a day. In US 46m doses. 1.57m doses a day.

BOND MARKETS

ASIAN NEWS

  • Biden rings Xi to wish him Happy New Year. Spoke of his concern about China’s “coercive and unfair economic practices”. Biden warns China will face ‘extreme competition’. Xi says confrontation would be a disaster.
  • Tencent employee faces corruption charges in China.
  • China failed to meet its 2020 US trade targets under the Trump administration’s “phase one” agreement, buying just under 60% of the $172 billion worth of goods it said it would purchase.
  • Jack Ma spotted playing golf.

US AND EUROPEAN HEADLINES

  • JP Morgan says commodity ‘Supercycle’ just beginning.
  • Microsoft has considered buying Pinterest.
  • Seems Brexit is not working out too well for the City of London. An average EUR9.2bn shares a day were traded on Euronext Amsterdam and the Dutch arms of CBOE Europe and Turquoise in January. Up by around 4 times since before Xmas and pre-Brexit. Financial services contributed around GBP76bn in tax receipts to the Inland Revenue last year.
  • KPMG’s UK boss has stepped aside as a probe begins on offensive comments.
  • Biden is reconsidering banning Tik Tok. Dating app Bumble is valued at US$8.2bn

And finally…

The shopkeeper was dismayed when a brand new business much like his own opened up next door and erected a huge sign which read “Best Deals”.
He was horrified when another competitor opened up on his right, and announced its arrival with an even larger sign, reading “Lowest Prices”.

The shopkeeper was panicked, until he got an idea. He put the biggest sign of all over his own shop. It read… “Main Entrance”.

There was once an aspiring veterinarian who put himself through veterinary school working nights as a taxidermist.

Upon graduation, he decided he could combine his two vocations to better serve the needs of his patients and their owners, while doubling his practice and, therefore, his income.

He opened his own offices with a shingle on the door saying, “Dr. Jones, Veterinary Medicine and Taxidermy — Either way, you get your dog back!”

Read more on page: http://www.jokesoftheday.net/the-best-jokes/

Clarence

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