K64 Auxiliary Finance and Insurance Services

CBA shares forecast to push $100 within a year

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Original article by Clancy Yeates, James Eyers
The Australian Financial Review – Page: 16 : 13-Feb-15

Commonwealth Bank of Australia (CBA) shares peaked at $A93.96 in early February 2015. While the stock has since retreated slightly, some analysts are bullish about it. Macquarie Group has lifted its 12-month share price target to $A99 in the wake of CBA’s 2014-15 interim profit result, while Credit Suisse has a target price of $A96. However, PM Capital’s Uday Cheruvu says CBA’s earnings growth outlook does not justify its high forward price-earnings multiple

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MACQUARIE GROUP LIMITED – ASX MQG, CREDIT SUISSE (AUSTRALIA) LIMITED, PM CAPITAL LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, GOOGLE INCORPORATED

Rio Tinto leads $10b in payouts

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Original article by Amanda Saunders
The Australian Financial Review – Page: 1 & 12 : 13-Feb-15

Rio Tinto’s underlying earning for calendar 2014 were nine per cent lower than previously at $US9.3bn, although the result was better than analysts had expected. Rio will repurchase some $US2bn ($A2.6bn) worth of its shares, while a 12 per cent increase in its full-year dividend means a total of $US6bn ($A7.8bn) will be returned to shareholders. The resources group’s net debt has been reduced to $A12.5bn, compared with $US22bn in mid-2013

CORPORATES
RIO TINTO LIMITED – ASX RIO, GLENCORE PLC, DEUTSCHE BANK AG, UBS HOLDINGS PTY LTD, AUSTRALIAN FOUNDATION INVESTMENT COMPANY LIMITED – ASX AFI, BHP BILLITON LIMITED – ASX BHP, TELSTRA CORPORATION LIMITED – ASX TLS, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, TRANSURBAN GROUP LIMITED – ASX TCL, COLONIAL FIRST STATE GLOBAL ASSET MANAGEMENT

Atlassian fast tracks NYSE float

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Original article by Patrick Durkin
The Australian Financial Review – Page: 3 : 12-Feb-15

Australian entrepreneurs Scott Farquhar and Mike Cannon-Brookes are currently in 35th and 36th place on the "BRW" Rich List. However, their personal wealth is likely to increase significantly if Atlassian Software lists on the US sharemarket. The company has recruited former eBay executive Erik Bardman to fill the post of CFO. Atlassian president Jay Simons has given indications that the group could pursue an IPO in 2015

CORPORATES
ATLASSIAN SOFTWARE SYSTEMS PTY LTD, EBAY INCORPORATED, GENERAL ELECTRIC COMPANY, NEW YORK STOCK EXCHANGE, NASDAQ, ORACLE CORPORATION, SAP AG, IBM CORPORATION, MICROSOFT CORPORATION, COCHLEAR LIMITED – ASX COH, UNITED STATES. NATIONAL AERONAUTICS AND SPACE ADMINISTRATION, T ROWE PRICE GROUP INCORPORATED, DRAGONEER INVESTMENT GROUP LLC, HORTONWORKS, NEW RELIC, BOX, CISCO SYSTEMS INCORPORATED, CITRIX SYSTEMS INCORPORATED

Shocks likely as weaker $A hits home

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Original article by Bianca Hartge-Hazelman
The Australian Financial Review – Page: 20 : 10-Feb-15

Shane Lee of CIMB notes that consensus forecasts for earnings per share in the February 2015 reporting season have not been unduly affected by the sharp fall in the value of the Australian dollar. CSL, Boral and Newcrest Mining are among the stocks that could potentially have benefited from the lower currency in the first half of 2014-15. Lee notes that Boral will have greater downside risk in fiscal 2016, when less of its foreign exposure will be hedged

CORPORATES
CIMB SECURITIES INTERNATIONAL (AUSTRALIA) PTY LTD, CSL LIMITED – ASX CSL, BORAL LIMITED – ASX BLD, NEWCREST MINING LIMITED – ASX NCM, OZ MINERALS LIMITED – ASX OZL, COCHLEAR LIMITED – ASX COH, PERSEUS MINING LIMITED – ASX PRU, SONIC HEALTHCARE LIMITED – ASX SHL, TRANSFIELD SERVICES LIMITED – ASX TSE, AMCOR LIMITED – ASX AMC, ALUMINA LIMITED – ASX AWC, WHITEHAVEN COAL LIMITED – ASX WHC, OCEANAGOLD CORPORATION – ASX OGC, RIO TINTO LIMITED – ASX RIO, ILUKA RESOURCES LIMITED – ASX ILU, ATLAS IRON LIMITED – ASX AGO, SANDFIRE RESOURCES NL – ASX SFR, MOUNT GIBSON IRON LIMITED – ASX MGX

RBA helps BoQ in its new thrust

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Original article by Shaun Drummond
The Australian Financial Review – Page: 21 : 9-Feb-15

The Bank of Queensland (BoQ) will be hoping that its mortgage lending business will be boosted by the 25 basis point reduction in the cash rate on 3 February 2015. The regional bank was quick to announce that it will reduce its fixed and variable home loan rates, as well as its business lending rates. BoQ shares closed at $A13.31 on 6 February, although the consensus share price target of analysts is $A12.71. Most analysts have a "buy" or "hold" recommendation on the stock

CORPORATES
BANK OF QUEENSLAND LIMITED – ASX BOQ, RESERVE BANK OF AUSTRALIA, CLSA AUSTRALIA PTY LTD, INVESTEC BANK (AUSTRALIA) LIMITED, EZCORP INCORPORATED, SUNCORP GROUP LIMITED – ASX SUN, MACQUARIE SECURITIES PTY LTD, JP MORGAN AUSTRALIA LIMITED, BELL POTTER SECURITIES LIMITED, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Special payout boosts Tabcorp

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Original article by Andrew White
The Australian – Page: 21 : 6-Feb-15

Gaming group Tabcorp has announced a 2014-15 interim net profit increase of 64.1% to $A122.4m. Excluding abnormals the rise was 21.8% to $A90.9m, and revenue also grew 6.7% to reach $A1.12bn. The six-month distribution is $A0.10, up from $A0.08. CEO David Attenborough said the Australian-listed company would stage a pro-rata accelerated renounceable entitlement offer at an issue price of $A3.70, compared with the most recent on-market value of $A4.71. The proceeds will be partly used to fund a special distribution worth $A0.30 a share

CORPORATES
TABCORP HOLDINGS LIMITED – ASX TAH, ARGO INVESTMENTS LIMITED – ASX ARG, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, UBS HOLDINGS PTY LTD

Telstra, Stockland and big four to benefit from rate cut

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Original article by Max Mason
The Australian Financial Review – Page: 23 : 6-Feb-15

More investors are expected to embrace equities as a result of the interest rate cut on 3 February 2015, due to low yields on government bonds and bank deposits. George Boubouras of Contango Asset Management notes that stocks such as banks, telcos, consumer staples and infrastructure typically rise in response to an interest rate cut. Healthy dividend yields means the four major banks and Telstra in particular are likely to receive continued strong support from investors

CORPORATES
CONTANGO ASSET MANAGEMENT LIMITED, TELSTRA CORPORATION LIMITED – ASX TLS, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, STOCKLAND – ASX SGP, DEXUS PROPERTY GROUP – ASX DXS, RESERVE BANK OF AUSTRALIA, PLATYPUS ASSET MANAGEMENT PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED

Private equity firms to retain IPO stakes

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 21 : 5-Feb-15

Private equity floats are not necessarily superior as investments to other IPOs. A report by the Australian Private Equity & Venture Capital Association and advisory firm Rothschild shows that Australian-listed companies floated by private equity firms in 2104 returned 6.6 per cent by 31 December 2014. Non-private equity floats retuned 13.7 per cent. The study was limited to floats exceeding $A100 million in raised capital. Dividends were not taken into account

CORPORATES
AUSTRALIAN PRIVATE EQUITY AND VENTURE CAPITAL ASSOCIATION LIMITED, MONASH IVF GROUP LIMITED – ASX MVF, IPH LIMITED – ASX IPH, GENESIS ENERGY LIMITED – ASX GNE, GRIFFITHS CONSULTING, THE PAS GROUP LIMITED – ASX PGR, BURSON GROUP LIMITED – ASX BAP, NM ROTHSCHILD AND SONS (AUSTRALIA) LIMITED

‘Acquisitions the only way’ for South32

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Original article by Amanda Saunders
The Australian Financial Review – Page: 21 : 4-Feb-15

BHP Billiton’s proposed South32 spin-off is slated to debut on the Australian sharemarket by mid-2015. Deutsche Bank’s Paul Young has a valuation of $US13bn ($A16.7bn) on South32, and cautions that the group will have to pursue acquisitions as its scope for organic growth will be limited. He expects South32 to shun BHP’s progressive dividends policy in favour of a payout ratio of 30-40 per cent

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SOUTH32 LIMITED, DEUTSCHE BANK AG, SOUTH AFRICA COAL

Seven ‘too small to take out Beach’

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Original article by James Thomson
The Australian Financial Review – Page: 20 : 4-Feb-15

Seven Group Holdings has built up a 13.4 per cent stake in Beach Energy, after initially purchasing 3.5 per cent of the group’s shares in late January 2015. The share raid has prompted speculation of a takeover play, but Tim Mann of Morningstar believes that Seven Group lacks sufficient financial firepower to effect a takeover. Martin Kronborg of Credit Suisse suggests that the move may be in expectation that Beach will attract another suitor

CORPORATES
SEVEN GROUP HOLDINGS LIMITED – ASX SVW, BEACH ENERGY LIMITED – ASX BPT, MORNINGSTAR PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, WESTRAC HOLDINGS PTY LTD, BAILLIEU HOLST LIMITED