The ASX 200 rallied 62 points to 6869 (0.9%). Dow futures up 136 points. First Pfizer vaccine shipments arrive from Singapore. 142,000 doses landed at Sydney Airport. Results again the focus with BNPL mania continuing. Z1P had another huge day up 16.9% with APT up 1.6%, even HUM started to hum, up 5.6%. The Big Four Banks rallied except CBA down 0.6%. The basket ran to $159.22. Big miners too had a good day BHP up 2.3% and FMG up 2.5%. Gold somewhat non-plussed and energy stocks modestly higher, WPL up 1.0% and STO up 1.3%. TCL one of the few large caps in the red as Victorian lockdown continues, down 1.8%. In the industrials, TLS rose 2.1% with WOW up 0.6% and DMP up 3.4%. In corporate news, ALU fell 4.8% after disappointing with results. NEA up 19.0%, responds to JCap short-report and releases a better than anticipated first-half loss. BEN jumped 11.3%, first-half cash profit $219.7m vs year-ago $215.7m. Interim dividend 23.5c. CCL up 2.1% after CCEP lifts offer to 1350c. AHY up 5.3% on takeover talks with Essity. IPL down 2.6%, warns on First half EBIT impact. GPT up 1.2%, announces 5% buyback. Records statutory loss of $213.1m. JBH up 3.0%, profit in line with expectations. 180c interim dividend, sales growth eases in January. Nothing on the official economic front though CBA are talking another property boom. 10-year yields continue to trend higher at 1.30%, AUD slightly higher with US markets closed tonight for Presidents Holiday. Asian markets still limited due to Lunar New Year. Japan goes through 30,000 for first time since 1990s.
- ASX 200 rallies 62 points to 6869 on US strength. Presidents day tonight.
- High 6883 Low 6824. Narrow range. Solid from the open.
- Big Bank Basket rallies to $159.22.
- All Tech Index up 1.16%. APT up 1.6%
- Dow Futures up 136 points.
- Gold weaker at AUD$2345.
- 10-year yield rises to 1.30%
- AUD steady at 77.83c
- Bitcoin off highs at US$47203.
- Asian markets mostly closed for Lunar New Year. Japan abive 30,000 for first time in 30 years.
MARCUS TODAY TEAM INSIGHTS
STRATEGY: THE WEEK AHEAD – The focus is well and truly on results this week with a host of big names set to report and the dividends rolling in behind them. This morning we have had a few interesting results reactions. Seems the positive mood is making it a pretty good time to report for pandemic victims and beneficiaries alike. READ MORE
HENRY’S TAKE – Today a look at a new product (well, newish) in SPP Harvester which aims to harness the discounts SPPs are done at. IOU is having an incredible ride today. Written up last week, the price is up 85% today alone. Those rocket Emojis are working overtime on social media. Now in a trading halt pending an ASX price query. A look at the ‘Ho-Hum’ KMD results and a link to the Ask the Analyst session from last Friday. READ MORE
- Z1P +16.90% US Roadshow seems to be successful!
- DMP +3.36% hits $100 for first time.
- AHY +5.36% continues to talk with Essity about takeover.
- IPL -2.65% more problems with US ops.
- CIM +1.22% exits the Middle East finally.
- ORE +5.34% no issues after earthquake.
- VUL 3.12% acquisition of JV partner.
- ALU -4.79% results disappoint.
- SKO -4.47% thin volume.
- CWN +0.81% CEO quits.
- NOV +38.46% BNPL fever.
- ADO +43.18% Ellume attraction.
- AGL -3.80% downgrades continue.
- NEA +18.98% shorts run for cover as company fights back.
- 3DP +8.33% Bevan magic continues.
- SZL +7.29% BNPL mania continues.
- GMA +7.35% broker upgrade.
- BEN +11.28% dividend back. Shorts scramble.
- BD1 +103.49% more good results.
- IOU +59.09% cops an ASX speeding ticket.
- AMS +13.37% good results.
- GGG -20.00% selling continues.
- Speculative Stock of the Day: Fatfish Group (FFG) +73.58% iCandy (ICI) sells Digital for $4.8m.
- Biggest Winners: NEA, Z1P, PLS, BEN, NVX, PDN, BET, RBL and 3DP.
- Biggest Losers: ALU, BPT, CRN, AGL, JLG, STX and SPL.
- Altium (ALU) -4.79% First half profit from continuing operations US$16.6m vs year-ago US$23.1m and consensus US$22.3m. Revenue US$80m vs consensus US$89.5m. EBITDA US$27m vs consensus US$34.4m. Interim dividend 19c. FY Guidance (Jun 2021): Revenue US$190-195m. EBITDA margin 37-39%. Macro environment remains challenging but a stronger second half expected as sales organization changes gain traction.
- JB Hi-Fi (JBH) +3.05% First half profit $317.7m, in line with preliminary expectations. Revenue $4.94bn vs year-ago $4.00bn. Online sales $678.8m, +161.7% vs year ago. EBIT $462.8m vs year-ago $263m. Interim dividend 180cps. January 2021 sales update and outlook: Strong sales momentum has continued into January across all brands. Total sales growth for JB HI-FI Australia was +17.3% vs year-ago 6.5%. Reflecting comparable sales growth of 18.6% vs year-ago 6.0%. Total sales growth for JB HI-FI New Zealand +21.7% vs year-ago (1.6%). Reflecting comparable sales growth of 21.7%. Total sales growth for The Good Guys was 14.1% vs year-ago 1.4%. Reflecting comparable sales growth of 14.1%.
- Coca-Cola Amatil (CCL) +2.13% Enters into amended Scheme Implementation Deed with CCEP. Offer increased to 1350c/share from 1275c/share. CCEP has declared that this is its best and final offer. Implies an equity value of ~$9.83bn and an enterprise value of ~$11.08bn.
- Crown Resorts (CWN) +0.81% CEO Ken Barton steps down. Helen Coonan will lead the company as Executive Chairman while the board oversees a search for a new CEO. Barton will continue to assist the Executive Chairman in coming weeks to ensure a smooth handover.
- Bendigo & Adelaide Bank (BEN) +11.28% First half cash profit $219.7m vs year-ago $215.7m. Net interest margin (NIM) 2.30%, +7bps vs year ago. Net impaired assets $137.9m vs half-ago $163.0m. Interim dividend 23.5c. CET1 ratio 9.36%. Continues to target above-system residential lending and further growth in small business and agribusiness sectors, whilst reducing cost base and maintaining a strong and resilient balance sheet.
- Seven West Media (SWM) +6.38% First half underlying profit $86.6m vs year-ago $68.5m. Revenue $644.2m vs year-ago $714.5m and consensus $652.4. Underlying EBITDA $165.7m vs year-ago $133.1m. Trading update: Early bookings indicate Seven’s Q3 revenue could be 7 -10% ahead of the prior year. Q4 remains too early to call, but is up against a softer comparative period. Targeting improved revenue share in FY22 on the back of stronger audience share in 1H21 and CY21. Annual operating expenses in FY21 to be at the bottom end of analyst range of $1.03-1.05bn (excluding net one-off temporary benefit of $17m).
- Aurizon Holdings (AZJ) +3.90% First half underlying profit $269m vs consensus $246.9m. Revenue $1.53bn vs consensus $1.50bn. Underlying EBIT $456m vs consensus $434.4m. Interim dividend 14.4c/share, 70% franked. FY Guidance (Jun 2021): Underlying EBIT $870-910m vs prior guidance $830-880m. Coal volume 200-210Mt vs prior guidance of 210-220Mt. Capex remains at $500-550m.
- Cooper Energy (COE) -1.61% First half underlying profit -$17.4m vs year-ago -$2.0m. Revenue $48.6m vs year-ago $39.1m. Underlying EBITDAX $9.7m. Guidance: FY21 production 2.7-2.9MMboe vs year-ago 1.56MMboe. Sales volume 2.9-3.1MMboe vs year-ago 1.54MMboe. Capex $45-50m vs year-ago $76m.
- Nearmap (NEA) +18.98% First half profit -$9.4m vs year-ago -$18.6m and consensus -$19.6m. Revenue $54.7m vs consensus $53.1m. EBITDA $13.5m vs consensus $6.7m. Closing annual contract value (ACV) $112.2m vs year-ago $96.6m. New customers contributed $4.9m of incremental ACV in HY21, -43% vs year ago. Response to JCap short-seller report, management comments: “This Report demonstrates a deep misunderstanding of our business and the industry in which we operate. The Report contains many inaccurate statements, makes unsubstantiated allegations and presents a misleading representation of our business. Our Company has delivered a very strong result which clearly demonstrates the strength of our business and the high levels of engagement of the Nearmap team. All members of the Board are resolutely committed to the Company’slong-term growth.”
- GPT Group (GPT) +1.21% Full-year total funds from operations (FFO) $554.7m vs year-ago $613.7m. Announces buyback of up to 5% of shares on issue. Statutory profit -$213.1m. Distribution 22.50c, down 15% vs year ago. Due to the uncertain operating conditions, are not providing earnings and distribution guidance for 2021 at this time. Buyback details: The buyback will be for 12 months beginning 15-Feb-21 and ending on 14-Feb-22. Securityholder approval is not required as the buy-back is intended to be conducted within the 10/12 limit.
- Beach Energy (BPT) -4.27% First half underlying profit $128.7m vs year-ago $274.0m Revenue $705.0m vs year-ago $900.0m and consensus $705.0m. Underlying EBITDA $407m vs year-ago $622m. Interim dividend of 1cps, fully franked. FY21 guidance: production guidance has been updated to 25.5-26.5MMboe vs prior 26.0-28.5MMboe. Capex $720-760m vs prior $650-750m. Underlying EBITDA $900-950m vs prior $900-1,000m. Unit operating costs $9.00-9.40/boe vs prior $8.25-8.75m.
- Incitec Pivot (IPL) -2.65% Expects incremental adverse impact on H1 EBIT of $35m.
- Commonwealth Bank analysts say housing is on ‘the cusp of a boom’. CBAexpects national dwelling price to rise 8% in 2021 and 6% in 2022. “The risks are tilted toward stronger outcomes.”
- Vaccine Tracker: 173m doses across 77 countries. 5.96m doses a day.
- US has seen 53.8m doses and 1.68m a day.
- France reported 16,546 new infections on Sunday amid worries about variants of the coronavirus.
- Italy extended its ban on ski resorts, set to expire on Monday, until March 5th.
- U.K. Prime Minister Boris Johnson confirmed his government had met its target of immunizing everyone over the age of 70. 15m arms have been jabbed.
- The vaccine has arrived in Australia. Much fanfare.
- Japanese Gross domestic product grew an annualised 12.7% from the prior quarter in the three months through December. Fourth-quarter expansion meant the economy had only seen a 4.8% contraction in the year.
- The Nikkei 225 Stock Average was up 1.1%, briefly climbing above 30,000 for the first time since 1990. The two highest-weighted stocks, Uniqlo operator Fast Retailing Co. and SoftBank Group Corp., make up almost 19% of the index.
- The Singapore economy contracted 5.4% in 2020, better than initial estimate. Government maintains forecast for 4%-6% growth this year.
US AND EUROPEAN HEADLINES
- Apple breaks off talks with Nissan over autonomous car.
- Porsche has ruled out making its cars in China. It believes Made in Germany has cachet.
- Google and Facebook close to a deal to pay for news from Australian media outlets.
It’s Saturday morning and Bob’s just about to set off on his round of golf, when he realizes that he forgot to tell his wife that the guy who fixes the washing machine is coming around at noon. So he heads back to the clubhouse and phones home.
“Hello?” says a little girl’s voice.
“Hi, honey, it’s Daddy,” says Bob. “Is Mommy near the phone?”
“No, Daddy. She’s upstairs in the bedroom with Uncle Frank.”
After a brief pause, Bob says, “But you haven’t got an Uncle Frank, honey!”
“Yes, I do, and he’s upstairs in the bedroom with Mommy!”
“Okay, then. Here’s what I want you do. Put down the phone, run upstairs and knock on the bedroom door and shout in to Mommy and Uncle Frank that my car’s just pulled up outside the house.”
“Okay, Daddy!” A few minutes later, the little girl comes back to the phone. “Well, I did what you said, Daddy.”
“And what happened?”
“Well, Mommy jumped out of bed with no clothes on and ran around screaming, then she tripped over the rug and went out the front window and now she’s Just laying there crying”
“Oh, my God! What about Uncle Frank?”
“He jumped out of bed with no clothes on too, and he was all scared and he jumped out the back window into the swimming pool. But he must have forgot that last week you took out all the water to clean it, so he hit the bottom of the swimming pool and now he’s just laying there not moving.”
There is a long pause.
“Swimming pool? Is this 9907 9876?
A new hair salon opened up for business right across the street from the old established hair cutters’ place.
They put up a big bold sign which read: “WE GIVE SEVEN DOLLAR HAIR CUTS!”
Not to be outdone, the old Master Barber put up his own sign: “WE FIX SEVEN DOLLAR HAIR CUTS!”
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