K64 Auxiliary Finance and Insurance Services

Why CBA is a standout with investors

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Original article by Patrick Commins
The Australian Financial Review – Page: 19 : 4-Feb-15

Morgan Stanley estimates that Commonwealth Bank of Australia (CBA) shares are now trading at 15.7 times the group’s forecast earnings for 2014-15. In contrast, the stock has traded at an average of around 12.9 per cent during the last 10 years. CBA shares have risen by 5.5 per cent in the last month, closing above $A90 on 3 February 2015. Shares in the three other major banks have also rallied in 2015, but CBA is the only one with a 30 June financial year

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MORGAN STANLEY AUSTRALIA LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, BLOOMBERG LP, UBS HOLDINGS PTY LTD, MORNINGSTAR PTY LTD

Argo tips strong year for yield stocks given global volatility

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Original article by Ruth Liew
The Australian Financial Review – Page: 15 : 3-Feb-15

Argo Investments has reported a 2014-15 interim profit of $A104.8m, which is three per cent higher than previously. The group achieved a return of 4.5 per cent for the half-year, while it will pay an interim dividend of $A0.14 per share. CEO Jason Beddow expects Australian investors to focus on stocks that offer solid yields in 2015, citing factors such as low interest rates and a high level of market volatility

CORPORATES
ARGO INVESTMENTS LIMITED – ASX ARG, STANDARD AND POOR’S ASX 200 INDEX, SUNCORP GROUP LIMITED – ASX SUN, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, WESFARMERS LIMITED – ASX WES, MEDIBANK PRIVATE LIMITED – ASX MPL, APA GROUP – ASX APA, SANTOS LIMITED – ASX STO, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, ASALEO CARE LIMITED – ASX AHY, TELSTRA CORPORATION LIMITED – ASX TLS, MILTON CORPORATION LIMITED – ASX MLT, NEWS CORPORATION – ASX NWS

Volatility casts shadow over earnings forecasts

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Original article by Richard Gluyas
The Australian – Page: 19 : 2-Feb-15

Stock price analysts and market economists are predicting renewed turmoil during the Australian profit reporting season in February 2015. Major factors are the rapid decline in mining and energy commodities prices after companies last issued their earnings forecasts, and the overall subdued trading conditions. However opinion is divided on how the S&P/ASX 200 Index will perform during calendar 2015, with Tim Rocks of Commonwealth Bank of Australia expecting a drop of 10% to around 5,000 points while Tony Brennan of Citi says the result will be a 9% gain to 5,850

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, CITIGROUP PTY LTD, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, QANTAS AIRWAYS LIMITED – ASX QAN, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

Van Eyk collapse still leaves retail investors ‘$20m out of pocket’

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Original article by Andrew Main
The Australian – Page: 22 : 2-Feb-15

Macquarie Investment Management in September 2014 closed the 14 Blueprint funds operated by van Eyk Research, due to an unauthorised illiquid asset allocation by UK hedge fund Artefact. The van Eyk firm subsequently collapsed, and buyers were sought from October on by liquidator Moore Stephens. The remaining business is now set to be acquired by Lonsec for some $A1m, while the New Zealand operations are worth $A2m. However sources say that investors in just 10 of the 14 affected Blueprint vehicles have been paid out in full so far, with a further $A20m-plus still outstanding

CORPORATES
VAN EYK RESEARCH LIMITED, VAN EYK BLUEPRINT ABSOLUTE AUSTRALIAN SHARES FUND, VAN EYK BLUEPRINT ABSOLUTE INTERNATIONAL SHARES FUND, VAN EYK BLUEPRINT AUSTRALIAN SHARES FUND, VAN EYK BLUEPRINT BALANCED FUND, VAN EYK BLUEPRINT CAPITAL STABLE FUND, VAN EYK BLUEPRINT DIVERSIFIED INCOME FUND, VAN EYK BLUEPRINT GLOBAL EMERGING MARKETS FUND, VAN EYK BLUEPRINT GOLD BULLION FUND, VAN EYK BLUEPRINT HIGH GROWTH FUND, VAN EYK BLUEPRINT INTERNATIONAL SHARES FUND, VAN EYK BLUEPRINT LISTED PROPERTY AND INFRASTRUCTURE FUND, VAN EYK BLUEPRINT SELECT EQUITIES FUND, VAN EYK BLUEPRINT SMALLER COMPANIES FUND, VAN EYK BLUEPRINT VOLATILITY BUFFER FUND, LONSEC LIMITED, ARTEFACT PARTNERS LLP, PYNE GOULD CORPORATION, MOORE STEPHENS AUSTRALIA PTY LTD, MACQUARIE INVESTMENT MANAGEMENT LIMITED, ARTEFACT PARTNERS GLOBAL OPPORTUNITIES FUND, AUSTRALASIAN WEALTH INVESTMENTS LIMITED – ASX AWI, COMMODITY STRATEGIES LIMITED

Forbes deflates Clive’s much-loved billions

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Original article by Andrew Main
The Australian – Page: 3 : 30-Jan-15

Mining magnate Gina Rinehart remains Australia’s wealthiest individual, according to "Forbes" magazine. The US publication estimates Rinehart’s wealth to be $US11.7bn. Real estate developer Harry Triguboff is second on the list of Australia’s 50 richest people, with net wealth of $US5.6bn. However, Clive Palmer failed to make the list, which required wealth of at least $US550m ($690m)

CORPORATES
FORBES INCORPORATED, PACIFIC SHOPPING CENTRES AUSTRALIA PTY LTD, ATLASSIAN SOFTWARE SYSTEMS PTY LTD

Law firms consider listing

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Original article by Luke Malpass
The Australian Financial Review – Page: 33 : 30-Jan-15

Shares in IPH Limited have peaked at $A3.80 since debuting on the Australian sharemarket at $A2.10 in November 2014. IPH is the holding company for law firm Spruson & Ferguson, and its success has prompted other intellectual property and patent law firms to consider IPOs. Graham Cowin, the managing partner of Phillips Ormonde Fitzpatrick, says the firm is looking at a range of options, while Griffith Hack chairman David Hughes says his firm has ruled out in IPO at this stage

CORPORATES
IPH LIMITED – ASX IPH, SPRUSON AND FERGUSON LAWYERS, PHILLIPS ORMONDE AND FITZPATRICK, GRIFFITH HACK LAWYERS PTY LTD, DAVIES COLLISON CAVE, MORNINGSTAR PTY LTD

Bond rally drives big stocks up

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Original article by Vesna Poljak, Philip Baker
The Australian Financial Review – Page: 1 & 6 : 28-Jan-15

Factors such as low bond yields and interest rates have promoted renewed support for Australian shares. The domestic sharemarket is also benefiting from historically low interest rates in Europe and the growing trend for self-managed superannuation funds to invest in stocks that offer high yields. Telstra and the Commonwealth Bank are among the stocks that rallied on 27 January 2015, and they now boast a net dividend yield of 4.5 per cent

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, TELSTRA CORPORATION LIMITED – ASX TLS, CREDIT SUISSE (AUSTRALIA) LIMITED, CIMB SECURITIES INTERNATIONAL (AUSTRALIA) PTY LTD, RESERVE BANK OF AUSTRALIA, EUROPEAN CENTRAL BANK, STANDARD AND POOR’S ASX 200 INDEX, WILSON ASSET MANAGEMENT

Class actions: firms warned

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Original article by Marianna Papadakis
The Australian Financial Review – Page: 3 : 23-Jan-15

The Australian class actions market is likely to grow. Herbert Smith Freehills partner Jason Betts says the profitability of the funding model makes the sector attractive to foreign litigation funders. Andrew Watson, the head of class actions at Maurice Blackburn, expects more such suits on behalf of investors

CORPORATES
IMF BENTHAM LIMITED – ASX IMF, AUSNET SERVICES LIMITED – ASX AST, LITIGATION FUNDING PARTNERS, HERBERT SMITH FREEHILLS PTY LTD, ALLCO FINANCE GROUP LIMITED, MAURICE BLACKBURN PTY LTD, KING AND WOOD MALLESONS, HARBOUR LITIGATION FUNDING LIMITED, COMPREHENSIVE LEGAL FUNDING LLC, AUSTRALIA. PRODUCTIVITY COMMISSION

Trading frenzy over pot stock

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Original article by Patrick Durkin
The Australian Financial Review – Page: 3 : 23-Jan-15

Shares in PhytoTech Medical closed at $A0.42 on 22 January 2015, after being issued at $A0.20 apiece in a $A5.9m IPO. Some 13 million shares in the group changed hands. PhytoTech will specialise in growing marijuana for medical use and the supply of medical devices for administering legal cannabis. Adam Blumenthal notes that the global medical cannabis industry is worth $A100bn at present

CORPORATES
PHYTOTECH MEDICAL LIMITED – ASX PYL, BBY LIMITED, GW PHARMACEUTICALS PLC, LONDON STOCK EXCHANGE, ASX LIMITED – ASX ASX, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

Murray report to lead to more M&A activity

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Original article by Michael Bennet
The Australian – Page: 20 : 22-Jan-15

Data from Thomson Reuters shows that the value of mergers and acquisitions in Australia’s financial services sector topped $US54bn in 2014, which is 52 per cent higher than previously. Meanwhile, the value of equity capital market deals rose by 14 per cent to $US5bn. Market watchers anticipate further deal-making activity in 2015, with some citing the upcoming release of the final report of the financial system inquiry as a key factor

CORPORATES
THOMSON REUTERS PLC, WESFARMERS LIMITED – ASX WES, MEDIBANK PRIVATE LIMITED – ASX MPL, QBE INSURANCE GROUP LIMITED – ASX QBE, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, ESANDA FINANCE CORPORATION LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, LLOYDS BANKING GROUP PLC, INVESTEC BANK (AUSTRALIA) LIMITED, GE CAPITAL AUSTRALIA, MORGAN STANLEY AUSTRALIA LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, ST GEORGE BANK LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BANK OF WESTERN AUSTRALIA LIMITED, AMP LIMITED – ASX AMP, AXA ASIA PACIFIC HOLDINGS LIMITED, CREDIT SUISSE (AUSTRALIA) LIMITED, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, CITIGROUP PTY LTD, CLYDESDALE BANK PLC, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, IOOF HOLDINGS LIMITED – ASX IFL, SFG AUSTRALIA LIMITED