Ten report could spark challenge

Original article by Dana McCauley
The Australian – Page: 24 : 9-Oct-17

Failed bidders for the Ten Network have until 13 October to challenge the transfer of its shares to US media giant CBS Corporation. A KPMG report to be released on 9 October may determine whether there will be a legal challenge to the CBS deal. The report concludes that Ten has negative net worth, but Lachlan Murdoch and Bruce Gordon are believed to have commissioned their own independent expert’s report which includes a positive valuation of Ten’s shares.

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, KPMG AUSTRALIA PTY LTD, CBS CORPORATION, KORDA MENTHA AND COLLEAGUES PTY LTD, ILLYRIA PTY LTD, BIRKETU PTY LTD, 21ST CENTURY FOX INCORPORATED, VIACOM INCORPORATED, CHANNEL 5 BROADCASTING LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD

Analysts suspect $65bn lift by big four banks has run its course

Original article by Daniel Palmer
The Australian – Page: 21 : 13-Jan-17

Australia’s four major banks have enjoyed double-digit rises in their share prices since Donald Trump won the US presidential election. Their combined market capitalisation has risen by $A65bn in the last two months, prompting analysts to question whether the rally will continue. Jarrod Martin of Credit Suisse notes that shares in the "big four" are now close to fair value, although the firm is upbeat about the outlook for the banks. It anticipates earnings growth of four per cent and has upgraded its share price targets.

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, SHAW AND PARTNERS LIMITED, BELL POTTER SECURITIES LIMITED

FMG can be ‘high growth, high yield’

Original article by Peter Ker
The Australian Financial Review – Page: 18 : 9-Dec-16

Shares in Fortescue Metals Group have gained 23 per cent since Donald Trump won the US presidential election. The pure-play iron ore producer is now valued at around $A20bn, and the 33.32 per cent stake of founder and chairman Andrew Forrest is worth nearly $A7bn. Forrest has downplayed the potential for a trade war between the US and China, which would weigh on Fortescue’s share price. He has also rejected suggestions that mining companies cannot boast both high yields and high growth.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Bleak view of Fairfax prospects

Original article by Darren Davidson
The Australian – Page: 21 : 29-Nov-16

Citi has a "sell" recommendation on Fairfax Media, and values the company at $A0.70 per share. In contrast, Citi values the Domain property listings business at $A0.80 per share. The firm estimates that Fairfax would incur total costs of about $A330m if it opted to discontinue its print newspapers to focus on its digital operations. However, Citi notes that Fairfax’s digital revenue fell by 4.5 per cent in the first half of 2015-16.

CORPORATES
FAIRFAX MEDIA LIMITED – ASX FXJ, CITIGROUP PTY LTD, DOMAIN.COM.AU, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, CARSALES.COM LIMITED – ASX CAR, REA GROUP LIMITED – ASX REA

Rally in local bank shares won’t last: CLSA

Original article by David Rogers
The Australian – Page: 30 : 25-Nov-16

The share prices of Australia’s four major banks have risen by an average of nearly seven per cent since Donald Trump’s presidential election win. However, Brian Johnson of CLSA does not expect this to be sustained, noting that local and international banks are facing a number of headwinds. He adds that Australian bank stocks are expensive compared with their overseas peers, while their common-equity tier-one capital must be increased by some $A27bn.

CORPORATES
CLSA AUSTRALIA PTY LTD, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Big four the cheapest in 20 years, says Regal

Original article by Vesna Poljak
The Australian Financial Review – Page: 17 : 17-Aug-16

Regal Funds Management’s Julian Babarczy says Australia’s four major banks offer good value at present, noting that their valuations are at or near their lowest in the last two decades. Meanwhile, Babarczy says the banks’ capital ratios and credit quality are sufficient at present so they do not need to undertake capital raisings. The proceeds of the ANZ Bank’s $A1bn hybrid securities issuance will be treated as additional tier-1 capital rather than common equity tier-1 capital.

CORPORATES
REGAL FUNDS MANAGEMENT PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NIKKO ASSET MANAGEMENT GROUP

That high P/E for a stock may not be that high a P/E after all

Original article by Philip Baker
The Australian Financial Review – Page: 26 : 9-Aug-16

Australia’s benchmark S&P/ASX 200 Index currently boasts a forward price/earnings ratio of 16 times, while its long-term average is around 14.5 times. In contrast, the Dow Jones Industrial Average and the S&P 500 boast forward P/E ratios of about 18 and 20 times. Meanwhile, many individual stocks in the ASX/200 boast P/E ratios of more than 20 times. Clime Investment Management argues that the elevated P/E ratios of some top-20 stocks may not be justified.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, DOW JONES INDUSTRIAL AVERAGE INDEX, STANDARD AND POOR’S 500 INDEX, CLIME ASSET MANAGEMENT PTY LTD, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, RAMSAY HEALTH CARE LIMITED – ASX RHC, REA GROUP LIMITED – ASX REA, COCHLEAR LIMITED – ASX COH, CSL LIMITED – ASX CSL, BLOOMBERG LP

ASX tipped to hit 5500 by end of 2016

Original article by Jessica Sier
The Australian Financial Review – Page: 21 : 11-Jul-16

Hasan Tevfik of Credit Suisse says Australian shares are relatively cheap at present, in comparison to alternative investments such as cash and bonds. Tevfik adds that the prospect of further official interest rate cuts should also prompt investors to switch to equities. Meanwhile, UBS notes that the market’s price-to-book value is now 13 per cent below the long-term average, and about 50 per cent lower in the case of resources stocks. UBS’s David Cassidy expects the market to be trading at around 5,500 points by the end of 2016.

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, UBS HOLDINGS PTY LTD, STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX, RESERVE BANK OF AUSTRALIA, CSL LIMITED – ASX CSL, BRAMBLES LIMITED – ASX BXB, AMCOR LIMITED – ASX AMC

Banks cheap on valuations, but ‘buy’ status questionable

Original article by Vanessa Desloires
The Australian Financial Review – Page: 27 : 12-Apr-16

The share prices of Australia’s four major banks have fallen by 7-12 per cent in the last month. As a result, the banks are trading at a sizeable discount based on their forward price-to-earnings ratio, which has fallen to about 11 times. However, Omkar Joshi of Watermark Funds Management notes that the banks are still much more expensive than their international peers on a price-to-book ratio.

CORPORATES
WATERMARK FUNDS MANAGEMENT PTY LTD, DEUTSCHE BANK AG, BLOOMBERG LP, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, ARRIUM LIMITED – ASX ARI, AURORA FUNDS MANAGEMENT LIMITED, CONTANGO ASSET MANAGEMENT LIMITED, ESANDA FINANCE CORPORATION LIMITED, MACQUARIE GROUP LIMITED – ASX MQG, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Rio closing the gap for title as biggest miner

Original article by Matt Chambers
The Australian – Page: 17 & 18 : 7-Dec-15

The market capitalisation of BHP Billiton was $A92bn at the end of the week ended 4 December 2015, according to data from Bloomberg. Rio Tinto’s capitalisation was $A79bn. BHP has been the world’s largest miner since 2001, and its market capitalisation exceeded that of Rio by about $A90bn in mid-2014, but this briefly narrowed to about $A10bn during the last week. BHP’s market value has been hit by a number of factors in 2015, including the South32 spin-off, uncertainty regarding its dividend payout and the downturn in commodity prices.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, SOUTH32 LIMITED – ASX S32, JP MORGAN AUSTRALIA LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BLOOMBERG LP, ALCAN INCORPORATED, CITIGROUP PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC