Daily Video News from Stock Markets around the Globe.

  • Share to sell – Fortescue Metals Group Ltd.

    Fortescue Metals Group Ltd. explores for and produces iron ore. The Company conducts business worldwide. The decision to short sell Fortescue is based upon two things; downgraded iron ore price forecasts and bearish technical momentum. Demand for iron ore is weak and supply continues to surge, with Chinese producers unlikely to pick up the slack in any meaningful way coming into the traditional restocking period. FMG Graph This was brought to bear overnight, with iron ore prices slumping a further 4.4%, to $71.80 per metric tonne. On the technical front, FMG is displaying significant bearish momentum and the path of least resistance is clearly to the downside.

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  • Share to Sell- Seven West Media (SWM)

    Seven West MediaThe bias for Seven West Media (SWM) is firmly bearish. As we have highlighted on the chart below, SWM has been in a downtrend for some time now, falling from around $2.60 in September to presently be trading around $1.90. The shorter-term EMAs are crossed lower and the price action is below the longer-term EMA filter, which is negative. It is also of note that since February, volumes have been increasing, rather than decreasing, which is symbolic of increasing downward momentum in the stock (often when a downtrend is weakening, we see lower volumes). Seven West Media    

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  • TPG Telecom LTD Buy Share

    TPG Telecom Limited (TPM) wholesales bandwidth and other telecommunications services. The company also delivers a full range of telecommunications products and services to home and business consumers through its retail operations. Its network infrastructure includes fixed line, fibre and wireless services connecting voice customers with call collection areas throughout Australia and data and internet customers with more than 350 exchange areas. Key Points FY13 Results impress:

    >> Revenue was $725 million a 9% increase on the prior year’s result
    >> Underlying profit grew by 31% over the year to $149 million, this translating to an impressive 340 basis point expansion in the NPAT margin
    >> The strong result was on the back of organic growth in its broadband and mobile subscriber base’s
    >> The group paid total dividends of 7.5 cents a share fully franked, an increase of 36% on FY12
    >> Free cash flow grew to $175 million, a 17% increase over the year. The group used $107 million of this excess cash to pay down its debt
    >> TPM’s net debt is now sits at $16 million, equating to net debt to equity of only 2%
       
    Outlook TPM’s results were solid, with strong organic growth recorded in most segments, however that was not the key takeout of the announcement. TPM announced a new strategy to expand its fibre network to half a million residential and commercial premises in capital cities across the country. This new network should increase its pricing ability, whilst also improving its competitive position. The group has plenty of room on its balance sheet for the expansion, which is not expected to be rolled out until FY15. We think this could be a major driver for the company’s already strongly growing business and this should be a major driver for the company going forward. For all of our latest buy share options and trading ideas sign up for FREE 7 Day Trial and gain full access our research files.

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  • Boart Longyear (BYL) Share To Sell

    boart longyearBoart Longyear (BLY) provides contract drilling services to the mining, environmental, infrastructure, and energy industries. The Drilling Services business provides drilling services to the mineral exploration, development and production, environmental, infrastructure and energy markets. The Drilling Products business designs, manufactures and sells drilling equipment such as drills and support systems, as well as bits, rods and all requisite tooling. China continues to slow Yesterday, the HSBC Final Manufacturing PMI confirmed China’s manufacturing sector contracted sharply in June. The PMI reading of 48.2 was the weakest since September 2012. Deteriorating business conditions, including falling customer orders and rising inventories, were blamed for the poor manufacturing result. Another worrying trend that has emerged in recent weeks has been a tightening in Chinse credit markets. Since mid-May, Chinese banks and financial institutions have been wary of lending to each other, leading to sharp rises in inter-bank borrowing rates. Weaker credit, combined with Beijing’s reluctance to stimulate the economy, is likely to keep manufacturing in the doldrums for a little while longer. Poor operational update BLY warned yesterday that it indeed was facing worsening trading conditions, particularly relating to its Drilling Services business, which is suffering from weak rig utilisation rates and customers delaying their drilling programs. The group said FY13 revenue and EBITDA were likely to miss consensus estimates of a US$1.355 - US$1.556 billion range for revenue and a US$176 – US$211 million range for EBITDA. In FY12, BLY reported revenue of US$2.01 billion and EBITDA of US$254 million. Not only is the group on track for a massive year-on-year drop in revenue and operating earnings, but it was forced to seek assistance from lenders regarding its bank debt facility. BLY was allowed to reduce its leverage ratio (gross debt / EBITDA) requirement from 4.75x in FY13 to 3.50x by FY16. In return the company must give up security over a greater range of assets, has to pay a higher rate of interest and increase the pace of principal repayments. Outlook China’s manufacturing sector has entered contraction territory and its export sector is buckling under the weight of tepid global economic growth. As a result, miners are likely to curtail their capital expenditure in response to weaker demand. BLY is therefore unlikely to see a pickup in demand for its drilling products, whilst drill rig utilisation rates are likely to continue heading lower. At the end of FY10 rig utilisation rates were 75%, but are heading towards 50% at the end of FY13, according to BLY. Although BLY’s revised covenants allow it space to breathe if EBTIDA stays low in coming years, the fact it must pay higher interest is worrisome in a period where lending rates are expected to rise. BLY must convince the market that it has measures in place to slash costs and/or that revenue is likely to rebound. We don’t think the latter is likely to occur any time soon. Net profit margin has shrunk from 7.9% in FY11 to just 3.4% in FY12. Higher interest expense without an offsetting reduction in operational expenses is likely to heap further on the group’s margins. Boart Longyear was listed as a sell share for our members on June 2nd. For all of our latest share tips and trading ideas sign up for FREE 7 Day Trial and gain full access our research files.

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  • Share Tip: Wotif Holdings Limited

    Wotif Holdings LogoWotif.com Holdings (WTF) is an online travel services business, which represents 23,500 in more than 67 counties. The group’s main website is wotif.com, but it also operates under lastminute.com.au, travel.com.au, Asia Web Direct, LateStays.com, GoDo.com.au and Arnold Travel Technology. WTF, through the aforementioned websites, offers a variety of services that include flights, insurance, car rental, and travel accommodation and packages across hotels, motels, serviced apartments, resorts, guesthouses and bed & breakfasts. The service allows customers to book rooms at a heavy discount and at the same time help hotels better manage their vacancies. FY12 impress, while 1H13 disappoints At first glance WTF’s FY12 results looked good, however when placed in the context of the weak domestic travel market, the results were fantastic. Revenue over the year was up 5%, to $145.3 million. Net profit was $58 million, up 13.8% on the FY11 result. The results were driven by an increase in accommodation rates and sales, and also some significant growth in WTF’s flight booking service. WTF’s operating profit margin also increased from 56% to 59%, with the group demonstrating good cost control whilst expanding revenue. On a more disappointing side, WTF said the first quarter of fiscal year 2013 continues to reflect economic weakness. The 1Q13 performance was in line with the 1Q12 and likely to continue for the remainder of 2012. The group is essentially saying that it expects little revenue or margin growth for the 1H13 as the operations continue to endure a period of prolonged weakness. The good news The AGM was not all bad news with WTF announcing its plans to lift its booking commission rate by 1% from 1 January 2013. This will be followed by a further lift of the same amount on 1 January 2014. The group had $1.16 billion worth of transactions in FY12, and a 1% increase in commissions on this figure would increase of $11.6 million in revenue. If the group’s strong operating profit of 59% stays consistent, the increased commissions would equate to a pre-tax profit increase of $6.8 million. Even with flat transaction growth over the next two years, the two sets of increased commissions suggest the company still has the ability to grow earnings. Outlook WTF’s FY12 results showed a company that is able to grow earnings even in a tough environment. We think that the increase in commissions starting 1 January 2013 will negate the effect of continued weakness within the domestic accommodation market. We would also expect some of the increased revenue to be redirected towards expanding into the less mature flight and holiday letting businesses, which has already started to show promising signs. Given the aforementioned factors we feel WTF has plenty of scope to continue growing its earnings, providing further support for the share price. This article was distributed to our members on December 18th, if you would like further information you can sign up for FREE 7day recommendations and access all our research files on not only Wotif but all our current trading ideas. Simply click here and starting trading today.

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  • Daily Global Financial Markets Video News September 14 2011

    Daily Global Financial Markets Video News September 14 2011

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  • Daily Global Financial Markets Video News September 13 2011

    Daily Global Financial Markets Video News September 13 2011

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  • Daily Global Financial Markets Video News September 12 2011

    Daily Global Financial Markets Video News September 12 2011

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  • Daily Global Financial Markets Video News September 7 2011

    Daily Global Financial Markets Video News September 7 2011

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  • Daily Global Financial Markets Video News September 6 2011

    Daily Global Financial Markets Video News September 6 2011

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