BHP Announces Iron Ore Jumped 14%

Blue chip stock BHP announced that its iron ore production jumped by 14% to 37.9 million tonnes for the March quarter.

The company said it was still on track to produce about 159 million tonnes of iron ore, despite the unusual wet season in the Pilbara.

Production of petroleum products soared 58% to 56.5 million barrels of oil equivalent, helped by last year’s shale gas buys in the US.

It wasn’t all good news for the mining giant, with the company cautioning that the output of steelmaking coal may be dented in the coming quarters due to a labour dispute in Queensland.

For FREE Daily Trading Recommendations, Click Now!

If you were a member of Australian Stock Reports Traders Report for the December quarter, you could have made 16.35% in the last 3 months!!!

December Quarter Traders Report Trade Performance

At Australian Stock Report we will not only recommend what to buy, but when to buy or sell.

Also if you haven’t got the time to keep up our recommendations, ask about opening up an Automatic Trader account, which replicates our trade recommendations as they occur!

Now is a great time to Subscribe to one of Australia’s best performing Stock Market Reports!

Why not click here for a 7 day free trial….

Australian Stock Report is proud to launch the Learn to Trade @ Home education multimedia program.

The Education Multimedia program has been designed with both the beginner and experienced trader and investor in mind.

Learn to Trade @ Home allows you to access education material, review workshop notes and watch live video examples. When the time is right we’ll even help you open your trading account and help you place your first trade, just to make sure that you are comfortable with what you have learnt.

View the content as many times as you like in your home, office or on the road. Interact with all the online education support tools and access our support forum and “Ask the Presenters” to ensure that any of your questions are answered.

View the video below and register your interest.

Learn to Trade @ Home covers 8 Modules, incorporating the following topics:

Australian Stock Report is proud to launch its Investors & Traders Expo in 2011. The Investors and Traders Expo is a daylong, multi-speaker event hosted by Australian Stock Report covering topics including Technical & Fundamental Analysis, FX trading, CFDs, Options, Charting software and much more.

Taking place in Melbourne, Sydney, Brisbane, Perth, Adelaide and Auckland the Investors & Traders Expo will be the best value and most informative event for investors and traders looking to maximise their returns from the financial markets in 2011.

Tickets to the Expo cost only $49 including lunch, morning tea and an Expo-pack containing over $500 of included value. Places are limited so it is essential that you reserve your seat now.

The Program

08:30 – Registration

09:00 – Welcome and Introduction

09:10 - The Science of the Markets (Part 1): Technical Analysis and FX Trading (more details below)

10:20 – Morning Tea (included)

10:45 – How to Profit Safely from the CFD Revolution (more details below)

12:00 – Practical Fundamental Analysis Techniques (more details below)

13:00 – Lunch (included)

14:00 – Key Note Speaker’s Presentation – Kel Butcher (more details below)

15:10 – Options as Part of a Comprehensive Investing Approach (more details below)

16:00 – The Science of the Markets (Part 2): Unleash the Power of MetaStock (more details below)

17:00 – Finish

The Science of the Markets (Part 1): Technical Analysis and FX Trading
presented by Carl Capolingua, Head of Education Australian Stock Report

Technical analysis is the study of how security prices change over time on a chart. It is the preferred method of analysis for many professional traders allowing them to quickly, accurately and confidently analyse many securities in a very short space of time.

In this presentation Mr Capolingua describes what he calls “The Science of the Markets” and presents his unique view on what key technical analysis concepts must be mastered by investors before using this potentially very profitable approach on share and FX markets.

Register your seat here.

How to Profit Safely from the CFD Revolution
Presented by Jason Andor, Associate Director IG Markets Australia

CFDs are the fastest growing financial services product in Australia. Thousands of investors and traders have flocked to this revolutionary tool for trading shares, indices, foreign exchange (forex, or FX) and commodities from the same platform and account.

Mr Andor will provide a broad overview of CFDs, their uses and benefits, and also their risks. He will also discuss new industry guidelines and their impact on investors in choosing the correct CFD provider.

In addition to the above, Mr Andor will provide a detailed ‘how to’ guide for the IG Markets award winning trading platform PureDeal. When used correctly PureDeal is a powerful tool for identifying potentially profitable trading opportunities and quickly and easily turning them into trades.

Register your seat here.

Practical Fundamental Analysis Techniques
Presented by Geoff Saffer, Head of Research Australian Stock Report

Mr Saffer will guide delegates through the most practical and effective tools which they can use to gain an edge in the markets. You will learn how each fundamental technique can be applied in the Australian market and how to source the necessary information accurately and inexpensively.

In addition to the above, delegates will learn how to better utilise all of the information, resources, and tools within each of Australian Stock Report’s research offerings.

Register your seat here

Key Note Speaker’s Presentation – Kel Butcher
presented by Kel Butcher, Professional Trader, Author, Trading Coach

As with any profession or business, trading requires learning and skill development, a plan, and lots of hard work to achieve success.

This presentation delves into the most common trading mistakes novice traders make and how to avoid them. Based upon Mr Butcher’s bestselling book, it will discuss the combined wisdom of Dr Van Tharp, David Hunt, Justine Pollard, Louise Bedford, Brett Steenbarger, Russell Sands, Davin Clarke, Ryan Jones, Wayne McDonell, Gary Stone, Christopher Tate, Jake Bernstein, Larry Williams, Glen Larson, Tom Scollon, Dr Harry Stanton, John Robertson and Jason Cunningham.

Register your seat here

Options as Part of a Comprehensive Investing Approach
presented by Luke Cummings, Managing Director HC Securities

Options are the most used derivative instruments around the world by share traders looking to better minimise risk and increase returns over basic share trading. Unlike other derivative instruments such as CFDs, options allow investors to take advantage of not only rising and falling markets, but also range bound markets. It is this important distinction which allows options traders to have the ability to profit under all market conditions:

In this presentation Mr Cummings will dispel the myths of options trading versus CFD trading, outline the key benefits of options trading and why ALL investors should consider using options in their investing approach. Delegates will learn about a number of key strategies professional investors are using to improve their returns with options.

Register your seat here

The Science of the Markets (Part 2): Unleash the Power of MetaStock
presented by Carl Capolingua, Head of Education Australian Stock Report

MetaStock is the world’s leading investing and trading analysis software and is used by over 300,000 investors in 90 different countries to streamline and broaden their analysis.

In this presentation delegates will learn how to use MetaStock to identify the best trading opportunities from all over the world. In this informative and practical overview of the software you will learn how to use the Expert Adviser, The Explorer, The Enhanced System Tester, and the Fundamental Analyser. Live scans, explorations and simulations will be run on the current markets to demonstrate the power of MetaStock.

Australian Stock Report looks forward to seeing you at the expo of your choice. Click here to register now and reserve your seat to trading success.

Caltex (CTX) is Australia’s leading transport fuel supplier and a convenience retailer and the only integrated oil refining and marketing company listed on the ASX.

CTX operates two major refineries, at Kurnell in Sydney, and Lytton in Brisbane. CTX also operates a convenience store network in association with service station sites.

Caltex supplies about one-third of transport fuel in Australia, and is a net importer of petroleum products.

Though CTX has suffered in recent history over refiner margin pressure, the company recently reported 1H10 operating profit of $149 million, at the top end of company guidance.  CTX was one of the hot stocks in the weeks that followed, with the market giving its tick of approval to the results.

We last covered CTX last year when we rated the stock a Sell. The stock subsequently fell from $10.12 to $6.18 in less than two months, but we have now upgraded the stock to a Buy rating on the improving outlook.

About the business

CTX’s business value chain incorporates supply, refining, logistics and marketing.

In terms of supply, CTX buys crude oil and refined products on the international market. Caltex sourced some 72 million barrels of crude and refinery feedstocks in 2008.

CTX is Australia’s leading oil refiner. Combined production at its Kurnell refinery in Sydney and Lytton refinery in Brisbane comprises approximately 50% petrol, 30% diesel and 15% jet fuel.

The remainder of the production consists of fuel oil, waxes and lubricants, bitumen, sulphur, LPG and other gasses.

CTX further supplies products via a network of pipelines, terminals, depots and a company-owned and contracted transport fleet.

Caltex Marketing encompasses a range of downstream activities from retail service stations operations to equity and non-equity resellers and direct sales to corporate customers.

Caltex Star Mart, StarCard, StarCash, Vortex Premium, Bio E10 Unleaded, Havoline and Delo are leading sub-brands, each with significant and growing market shares in their respective product categories.

Oil uptrend

Lately we have seen surprisingly strong demand for oil in OECD advanced countries, particularly in the third quarter, and as such the International Energy Agency (IEA) has raised its forecasts for oil demand this year and next.

Global oil demand will increase this year by 300,000 barrels per day to 86.9 million barrels per day (mbpd), and by the same amount next year to 88.2 mbpd, giving annual gains of 2.5% and 1.4%.

The IEA has put OECD oil demand this year at 45.8 mbpd, a rise of 320,000 bpd from 2009.

Even for countries outside the OECD area, total demand was put at 41.2 mbpd in 2010 for a gain of 1.8 mbpd or 4.7%, quickly approaching the historical record reached in 2004.

Data from China suggested that oil demand surged by 8.5% in August on a 12-month basis, more than twice as fast as back in July.

The demand is clearly a strong positive for refiner CTX going forward.

Aussie influence

From 2004 to mid-2007, CTX was a strong performer, gaining on its various businesses and a strong market for oil.

The company then suffered difficulty over 2008 on a low Aussie dollar, oil price volatility, and the global economic slowdown.

A low Aussie dollar is no longer a problem for CTX, with our currency reaching parity with the US dollar on 15 October for the first time since exchange controls ended in 1983.

A stronger Aussie dollar reduces the cost of the oil that refiners like CTX need, but it can also erode their refining margins.

Fortunately, CTX and its peers are not worried over the accelerating AUD’s impact on refiner margins as hedging will cushion the impact.

A hearty half

On 23 August, CTX reported 1H10 operating profit of $149 million, at the top end of company guidance for $130-$150 million.

On a historical cost basis – including the value of stockpiles – CTX’s net profit fell 61% on the prior year to $141 million, in line with guidance of $125-$145 million.

A stronger Aussie dollar across the half lowered CTX’s refiner margin but a sharp fall in the value of the currency at the half’s end generated a foreign exchange loss on US dollar payables of $36 million.

CFO Simon Hepworth noted regional refiner margins remained fairly strong in July and August, despite oversupply and demand shortage fears.

CTX declared a half dividend of 30 cents per share, above market expectations.

The group gave little guidance but noted excess regional refining capacity continues to damp margins and that fuels demand.

With the Aussie dollar, oil prices and demand all finally working in CTX’s favour again we believe the company is on the mend and it will be one of the stocks to watch in coming months.

Get free daily stock advice on CTX and more, click for a free trial.

National Australia Bank (NAB) is one of Australia’s “big four” banks, with a focus on regional banking, wealth management operations, international capital markets and institutional banking business.  The group is also widely considered among the market’s blue chip stocks.

Brands within Australia include NAB and MLC, whereas the group is represented in New Zealand by Bank of New Zealand.  In the Americas NAB’s bank is Great Western, and in the UK, Clydesdale Bank and Yorkshire Bank.

On 27 October, NAB posted a 19% rise in FY10 cash profit to $4.58 billion, exceeding analyst estimates of a $4.49 billion profit.

Net profit surged 63% to $4.22 billion, driven mainly by a big drop in write-downs associated with problem loans.

Net interest margin increased 9 basis points to 2.25%, but revenue declined 1.6% amid lower net interest income, and global market volatility reducing its Treasury income.

NAB also increased its final dividend to 78 cents from last year’s 73 cents, whilst its share price jumped 2.1% on the day of the announcement, making it one of the better performers in the stock market.

Bendigo Bank (BEN) provides retail banking, commercial banking and wealth management services through Community Bank and Bendigo-owned branches across Australia.

On 26 October, BEN announced plans to buy Elders’ (ELD) 40% stake in agribusiness lender, Rural Bank, for $165 million, which would result in BEN owning 100% of the bank.

ELD, which is a company that operates in traditional rural services businesses, hardwood plantation management, and timber processing, has been among the shares to sell in recent months given its massive debt problems.

For BEN, the acquisition will be immediately cash EPS and ROE accretive.  ELD will receive the sale price plus $11 million in dividends, resulting in a profit of approximately $27 million.

The deal is subject to regulatory and ELD’s lender approval.

ELD soared 4.5% on the day of the announcement, making it one of the better performers in the Australian Share Market.

Get daily financial stock news on BEN and more, with a free trial.

ASX Ltd (ASX) operates Australia’s primary national exchanges for equities, equity derivatives and fixed interest securities. It also provides market data services and investor education courses.

The company is leveraged to Australia’s capital markets, particularly the number of listed companies, the volume of trades in all types of traded financial contracts, initial public offerings (IPOs) and secondary market capital raisings.

Recently, ASX agreed to a takeover approach from Singapore Exchange, valuing the company at US$8.2 billion, or $48 per share.

The part cash/part scrip offer, which was at an almost 40% premium to Friday’s last traded price of $34.96, will now need to be approved by Australian regulators.

ASX will now be one of the stocks to watch in coming weeks/months, as there is no guarantee the takeover will receive regulatory approval.

The combined entity will be listed on both Singapore and Australian exchanges, and will serve as a formidable competitor to the region’s big exchanges such as the Nikkei and Hang Seng.

ASX was one of the hot stocks on the day of the announcement, rocketing 20% after coming out of a trading halt.

Wesfarmers (WES) is a major diversified Australian company that covers a wide scale of industries.

These include retail, home improvement and building supplies, coal mining, gas processing and distribution, industrial and safety product distribution, manufacturing of chemicals and fertilisers and insurance.

The company is also widely considered among the market’s blue chip stocks.

On 21 October, WES reported its first quarter sales and coal output numbers.

Sales at Coles grew 5.9% on-year, outpacing Woolworths’ 3.2% gain yesterday. WES attributed the result to new store openings, and better quality fresh food.

Kmart and home improvement sales were up 3.7% and 3.9%, respectively, driven by in-store improvements and lower prices.

However, Target sales declined 1.4% amid tough trading conditions due to an extended period of cold weather, and price deflation.

At WES’ Curragh Mine, coal output declined 9.4% from the previous quarter, with unseasonable wet weather impacting the production of its metallurgical coal production.

Bengalla coal production fell 24.7%, also due to wet weather, whilst Premium output rose 12.9% as it became the sole supplier to Verge Energy from 1 July, 2010.

WES shares jumped 2.5% on the day, making it one of the better performers in the Australian share market.

Get more info on WES and other blue chip stocks with a free trial.

Austin Engineering (ANG) provides an array of manufacturing, repair and support services to the mining, oil and gas, aluminium and industrial sectors.

The company has manufacturing facilities in Australia, the US and the Middle East. Its products and services include JEC mining and earthmoving products.

As such, ANG is a major beneficiary of a booming resources sector and has been one of the hot stocks in recent months on an extremely robust environment for mining in Australia.

In mid-August, ANG reported yet another year of record profit, with net profit after tax (NPAT) of $19.3 million for FY10, up 30% from the previous year’s result.

Mining boom

A recent major strategic acquisition for ANG was the Pilbara Hire Group in Western Australia for $13 million – an acquisition which presents compelling value to ANG.

Pilbara Hire carries out most of its work in the lucrative Pilbara region where blue-chip stocks, Rio Tinto and BHP Billiton, have established a strong presence.

The timing is right for ANG to pick up more customers, with Treasurer Wayne Swan revealing earlier this week that Australia is about to embark on its biggest mining investment boom since the 1850s Gold Rush.

Mining investment plans this year have been up almost 50%, whilst mining companies are planning to invest five times more this FY than they were six years ago.

The current pipeline of resource projects in Australia is nearly $360 billion, with $110 billion being in advanced projects.

Australia’s engagement with Asian countries has enabled trade and investment to grow, particularly in the mining sector, which is good news for ANG.

Another record year

In mid-August, ANG reported yet another year of record profit, with net profit after tax (NPAT) of $19.3 million for FY10, up 30% from the previous year’s result.

Core earnings increased by 23% to $26.5 million, at an average annual margin of 18.4%, confirming the improvement in operating performance achieved during the year.

The company declared a final dividend of 7.5 cents per share, bringing the full-year dividend to 9.5 cents, an increase of 19% over the FY09 dividend.

The group finished the year with available free cash resources of $21.1 million, up from $14.9 million in the previous year.

The company raised $31 million in fresh capital in July 2009 to facilitate its expansion into South America.

Behind the numbers

ANG attributed the stellar FY10 result to improved efficiencies across the Australian operations during the year due to larger orders and higher capacity utilisation.

The result also reflected eleven months of revenue and profit contribution from the group’s new operation in Chile, which performed well during the year.

Solid operational performance by the group’s JV operations in Oman also provided enhanced levels of profit contribution.

ANG’s expansion into South America (initiated in August 2009) upon the acquisition of the steel dump truck body business of Conymet Limitada in northern Chile was also key in solidifying ANG’s position in the global mining equipment market.

Outlook

ANG’s stock has been in a strong uptrend since 2009, making it one of the better performers in the Australian share market, and it is easy to see why.

Aside from the company’s inherent strength and ability to expand into growth regions, the group has benefitted from a massive pick-up in global mining sector activity.

Australia is looking to benefit from this boom, with a rush of mining investment to support ANG’s order book in the coming years.

ANG’s FY10 results revealed yet another strong year of record earnings and FY11 should be similarly impressive, thanks to ANG’s recent expansion into the Pilbara and Chile and on increased demand for mining services.

Get daily stock information with a free trial.