CAPITALISTS AND FINANCIERS – AUSTRALIA

The good, the bad and the ugly of 2015

roymorgansocial Leave a comment

Original article by James Thomson
The Australian Financial Review – Page: 13 & 14 : 22-Dec-15

The rise in Blackmores’ share price from $A35 to more than $A200m was one of the highlights of 2015 for investors and financial markets. Others include the profit turnaround of Qantas, the US IPO of Atlassian, the sale of Toll Holdings to Japan Post for $A6.5bn and the commencement of exports from Gina Rinehart’s Roy Hill iron ore project. On the downside, a number of stocks have fallen sharply in 2015, including BHP Billiton, Dick Smith Holdings and Slater & Gordon, while embattled retailer Woolworths has issued several profit downgrades and is yet to stem losses at its Big W and Masters businesses.

CORPORATES
BLACKMORES LIMITED – ASX BKL, QANTAS AIRWAYS LIMITED – ASX QAN, ATLASSIAN CORPORATION PLC, TOLL HOLDINGS LIMITED, JAPAN POST COMPANY LIMITED, ROY HILL IRON ORE PTY LTD, BHP BILLITON LIMITED – ASX BHP, DICK SMITH HOLDINGS LIMITED – ASX DSH, SLATER AND GORDON LIMITED – ASX SGH, WOOLWORTHS LIMITED – ASX WOW, BIG W DISCOUNT STORES, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, SWISSE WELLNESS PTY LTD, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, BERKSHIRE HATHAWAY INCORPORATED, APPEN LIMITED – ASX APX, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, SANTOS LIMITED – ASX STO, SCEPTER PARTNERS, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, FORTESCUE METALS GROUP LIMITED – ASX FMG, RIO TINTO LIMITED – ASX RIO, ANCHORAGE CAPITAL PARTNERS PTY LTD, MYER HOLDINGS LIMITED – ASX MYR, VOCATION LIMITED – ASX VET, AUSTRALIAN CAREERS NETWORK LIMITED, ORICA LIMITED – ASX ORI, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Fairfax investor Waislitz backs cuts

roymorgansocial Leave a comment

Original article by Damon Kitney
The Australian – Page: 23 : 25-Nov-15

Media reports have suggested that News Corp Australia intends to retrench 55 journalists, while there is speculation that further job cuts are planned at Fairfax Media. Businessman Alex Waislitz does not expect the quality of journalism to be affected by the job cuts, and he argues that it is essential for companies in "sunset industries" to reduce costs in order to survive. Waislitz holds around two per cent of Fairfax’s shares via Thorney Investment Group and Thorney Opportunities Limited.

CORPORATES
FAIRFAX MEDIA LIMITED – ASX FXJ, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, THORNEY INVESTMENT GROUP AUSTRALIA PTY LTD, THORNEY OPPORTUNITIES LIMITED – ASX TOP, DOMAIN.COM.AU, IANGELS

Forget China, bigger risk for local shares on the horizon

roymorgansocial Leave a comment

Original article by Vanessa Desloires
The Australian Financial Review – Page: 35 : 17-Nov-15

Hasan Tevfik of Credit Suisse warns that a rise in the global inflation rate would have a bigger impact on Australian sharemarket investors that an interest rate rise in the US or an economic slowdown in China. Credit Suisse notes that global bond yields would most likely rise if there is a spike in the US inflation rate, while Stephen Walters of JP Morgan expects the global inflation rate to rise after falling to 1.4 per cent in September 2015.

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, JP MORGAN AUSTRALIA LIMITED, UNITED STATES. FEDERAL RESERVE BOARD, CAPITAL ECONOMICS LIMITED

CEOs rapped for ‘lazy’ $20b rights splurge

roymorgansocial Leave a comment

Original article by Simon Evans
The Australian Financial Review – Page: 24 : 13-Nov-15

Clime Asset Management’s John Abernethy says retail investors have questioned whether some recent capital raisings by large Australian companies were necessary. More than $A20bn has been raised by banks and other big companies in recent months, which Abernethy describes as "excessive and expensive". Santos shares were heavily sold down on 12 November 2015, in response to the oil and gas producer’s capital raising.

CORPORATES
CLIME ASSET MANAGEMENT PTY LTD, SANTOS LIMITED – ASX STO, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, MYER HOLDINGS LIMITED – ASX MYR, ORIGIN ENERGY LIMITED – ASX ORG, TREASURY WINE ESTATES LIMITED – ASX TWE, PERPETUAL LIMITED – ASX PPT, UNITED STATES. FEDERAL RESERVE BOARD

Stocks to buy in uncertain times

roymorgansocial Leave a comment

Original article by Vanessa Desloires
The Australian Financial Review – Page: 33 : 29-Sep-15

John Conomos of Macquarie Securities says a number of Australian-listed stocks should perform well amid the current volatility and uncertainty in global financial markets. Telstra, ResMed and Aristocrat Leisure are deemed to have the lowest sensitivity to uncertainty, based on Macquarie’s metrics. Other stocks include TPG Telecom, CSL, Stockland, Federation Centres, Caltex, Wesfarmers and Bank of Queensland.

CORPORATES
MACQUARIE SECURITIES PTY LTD, RESMED INCORPORATED – ASX RMD, ARISTOCRAT LEISURE LIMITED – ASX ALL, TPG TELECOM LIMITED – ASX TPM, CL PLASTICS AND CONSULTANTS PTY LTD, STOCKLAND – ASX SGP, FEDERATION CENTRES – ASX FDC, CALTEX AUSTRALIA LIMITED – ASX CTX, WESFARMERS LIMITED – ASX WES, BANK OF QUEENSLAND LIMITED – ASX BOQ, UNITED STATES. FEDERAL RESERVE BOARD, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Dividends seek caring home

roymorgansocial Leave a comment

Original article by Vanessa Desloires
The Australian Financial Review – Page: 31 : 23-Sep-15

Australian-listed companies are poised to pay investors some $A18bn worth of dividends. However, UBS Wealth Management’s David Sokulsky says that in the near-term investors may be better off retaining their dividends in cash rather than reinvesting in shares. He says investors should wait until the US Federal Reserve increases the cash rate, as bank stocks may offer value when the central bank finally tightens monetary policy. He also says equity markets may have further downside.

CORPORATES
UBS WEALTH MANAGEMENT AUSTRALIA LIMITED, UNITED STATES. FEDERAL RESERVE BOARD, AMP CAPITAL INVESTORS LIMITED, CREDIT SUISSE (AUSTRALIA) LIMITED, EUROPEAN CENTRAL BANK, SUNCORP GROUP LIMITED – ASX SUN, WOODSIDE PETROLEUM LIMITED – ASX WPL, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Get used to lower growth, returns

roymorgansocial Leave a comment

Original article by Vanessa Desloires
The Australian Financial Review – Page: 23 : 18-Sep-15

UBS Global Asset Management’s Tracey McNaughton believes that the US Federal Reserve should raise the cash rate in September 2015, but warns that financial markets may experience further volatility in the near-term regardless of its decision. McNaughton also says Australian investors can expect to receive lower returns in the future and should no longer rely on the traditional "set and forget" investment strategy.

CORPORATES
UBS GLOBAL ASSET MANAGEMENT (AUSTRALIA) LIMITED, UNITED STATES. FEDERAL RESERVE BOARD, NIKKO ASSET MANAGEMENT GROUP

Top sectors for feeding the dividend beast cited

roymorgansocial Leave a comment

Original article by Vanessa Desloires
The Australian Financial Review – Page: 27 : 15-Sep-15

Beulah Capital’s Peter Mavromatis does not expect further increases in Australian companies’ dividend payout ratios. He forecasts that companies will instead pursue mergers and acquisitions as investors continue to seek high dividend yields. Mavromatis believes that local and offshore companies will target sectors such as IT, property, transport and logistics. Gerald Moser of Credit Suisse Private Bank suggests that the healthcare and IT sectors are likely to experience more consolidation.

CORPORATES
BEULAH CAPITAL PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, GRAINCORP LIMITED – ASX GNC, TRANSURBAN GROUP LIMITED – ASX TCL, OIL SEARCH LIMITED – ASX OSH, WOODSIDE PETROLEUM LIMITED – ASX WPL, BHP BILLITON LIMITED – ASX BHP, FIDELITY AUSTRALIAN OPPORTUNITIES FUND, 3P LEARNING LIMITED – ASX 3PL, LEARNOSITY PTY LTD

SMSFs told to hold their nerve and buy

roymorgansocial Leave a comment

Original article by Jonathan Barrett
The Australian Financial Review – Page: 9 : 26-Aug-15

Self-managed superannuation funds have been advised to remain calm during a period of extreme volatility on the Australian sharemarket. Wayne Leggett, principal at Paramount Wealth Management in Perth, says the Australian economy is in a good shape. Australian stocks are still relatively cheap and there are many attractive buying opportunities.

CORPORATES
PARAMOUNT WEALTH MANAGEMENT, STANDARD AND POOR’S ASX 200 INDEX, SMSF ASSOCIATION, UBS HOLDINGS PTY LTD, HLB MANN JUDD

Miners criticise investors chasing instant gratification

roymorgansocial Leave a comment

Original article by Tess Ingram
The Australian Financial Review – Page: 27 : 6-Aug-15

Mining companies are under pressure from investors to deliver quick results, but the nature of the mining sector means that time and effort is needed to make major discoveries. Sandfire Resources MD Karl Simich said that there is no place for short-termism in the sector. Metals X CEO Peter Cook also noted a change in investor expectations and the emphasis on dividends rather than capital appreciation.

CORPORATES
SANDFIRE RESOURCES NL – ASX SFR, METALS X LIMITED – ASX MLX