Investing advice for stocks and shares.
Share to buy – APN Outdoor Media (APO)
The evolution of Billboards from static to digital has presented significant growth opportunities for APO.
The company, since IPO (Nov 2014), has secured both existing Static Billboards as well as development options to develop Digital Billboards.
Given the ability to modify advertising on-demand using sophisticated yield management techniques for digital formats, the potential revenue uplift is significant.
This can be observed by recent revenue trends whereby revenues have far exceeded the company's and market's expectation.
Given the scalability of digital formats, this translates strongly for profitability.
At their most recent update, the company has also upgraded guidance due to acquisitions, increased market share and an increase in penetration of digital formats.
The company also confirmed the renewal and expansion of key Airport related contracts, in particular with Sydney Airport.
Share to buy – NIB Holdings Limited (NHF)
- Market cap: $1.48 Billion
- Recent share price: $3.38
- Cash/debt: $58.81 million/$63.89Million
- Trailing P/E: 19.54
NIB health funds is one of Australia’s largest health insurers, providing health and medical cover to more than 1.1 million Australian and New Zealand residents
Private Health insurers are a segment of the market worth watching over the coming 12 months.
Both Medibank Private and NIB have become increasingly vocal about the need to improve efficiencies in the healthcare system and to put a lid on the spiralling cost of care.
With federal reviews into private health insurance and the Medicare Benefits Schedule, among other parts of the health system, there could be significant changes in fortune for the insurers who pay medical bills.
Throughout 2015, NIB shares have been volatile after rising to nearly $3.90 in March before falling to a low of $3 in October.
However, consistent profit and dividend growth has been a regular feature from NIB in recent years helping the company’s share price lift 10% for FY 15/16.
Share to buy – Macquarie Group (MQG)
Activity trends for MQG were positive in the recent quarter and the group should benefit from a medium-term positive earnings upgrade cycle. Optimism about MQG’s upcoming results has been gaining momentum of late, with the investment bank likely to benefit from further growth in FUM, volatility in financial markets and a lower AUDUSD. MQG will report full-year earnings on May 8, with consensus estimates suggesting net profit will come in at $1.51 billion. We wanted to position ourselves appropriately ahead of the announcement, hence our recent buy recommendation. The technical evidence is also strong, with a strong uptrend in place coupled with a recent retest and confirmation of a key round number - $80 – as support. With everything lining up fundamentally and technically, we wouldn’t be surprised to see a move towards $90. Read more tips on Blue Chip stocks on the ASX.
Share to buy – Toll Holdings Ltd
Toll Holdings (TOL) will sell five underperforming businesses, estimated to raise around $100m. We hail this as an improvement for operations and we’re now more confident the company can achieve its potential. Toll has an under geared balance sheet and as there is no need to reduce debt. As such, we suspect that there could be a capital return on the top of monetising the company's Singapore oil & gas supply base. On the technical front, TOL is displaying all the characteristics we would want to see. We have a solid bullish structure place, with the shorter-term EMAs crossed higher and the price action above the longer-term EMA filter, which is positive. Momentum is strong and amid an environment where yield plays are attractive, Toll Holdings fits the bills and should press higher. We’re targeting a move towards $6.80.
Suncorp Group (SUN) Share To Buy
>> General Insurance, which offers personal and commercial insurance products in the motor, home and contents, travel, boat, and workers’ compensation segments. >> Suncorp Bank, which offers banking services to personal, agribusiness, small business and commercial customers. >> Suncorp Life, which offers life insurance and superannuation products.
Share To Buy – Bank Of Queensland (BOQ)
Bank of Queensland (BOQ) is a financial institution, with services spanning retail and commercial banking, wealth management, insurance and equipment finance. As its name implies, BOQ predominantly caters to the Queensland market but has branches throughout Australia. FY13 results Much of BOQ’s recent strong share price performance has come on the back of its FY13 results. Cash profit surged to $250.9 million, from $30.6 million a year earlier. The bottom line turnaround was driven by a major decline in impairment charges from $401 million in FY12 to $112 million in FY13. This reflected a dramatic improvement in asset quality (by exiting weak and impaired assets). Net interest margin (NIM) grew from 1.65% to 1.7%, continuing a positive trend from FY09 when NIM was 1.6%. FY13’s NIM growth came on the back of a more favourable funding mix, which has also positioned BOQ to boost lending volumes in what remains a highly competitive mortgage market. There was also good cost control, with the cost-to-income ratio falling to 44.3%. This exceeded the initial guidance of 45% due to the successful implementation of efficiency and effectiveness programs. Outlook Management has targeted return on tangible equity (ROTE) of 13%+ by FY15. FY13 ROTE was 11.9%, well in excess of the ~10% initial guidance. Due to a combination of falling impairments, rising net interest income and disciplined cost control, we think the 15% ROE target will be achieved by management. The one area of concern was the retail lending growth of 0.6x system growth during FY13, this below the 1.2x target aimed for by FY15. Yet, as we mentioned before, the rise in NIM and dramatically improved asset mix gives the group flexibility to boost lending volumes ahead of FY15. The FY13 result was robust in nearly all areas, and expectations for a continuation of this momentum into FY14 are likely to provide a further boost to BOQ’s share price. For all of our latest share tips and trading ideas sign up for FREE 7 Day Trial and gain full access our research files.
Buy, Sell, Hold Recommendations – Herald Sun 24/11/2013
As featured in the Herald Sun on November 24th 2013, here are the latest buy, sell and hold recommendations from Geoff Saffer Equity Analyst & Educational Facilitator at the Australian Stock Report. Geoff has over 10 years’ experience researching and analysing Australian shares, with a passion for fundamental analysis and specialty in identifying undervalued companies – particularly at the smaller end of the market. Buys Challenger Limited (CGF) – CGF’s profit will drop in FY14, but super low P/E, demand for annuities and rebounding stockmarket make it good value. Ingenia Group (INA) – Retirement property manager is a turnaround play after exiting loss-making US business and cleaning up its balance sheet. Expect strong growth in next two years. Holds Woodside Petroleum (WPL) – Most recent quarter saw higher production offset by lower prices. Prospects for Browse project improving, but would like to see more strength in LNG prices. Crown Resorts (CWN) – Record gambling revenue in Macau driving Macau JV’s fortunes. Sydney Crown also offers huge upside but hype has pushed stock past value levels. Sells UGL Limited (UGL) – Property services demerger could unlock value, but otherwise under pressure from shrinking margins, weakening order book and struggling Engineering division. PanAust Limited (PNA) – Cash costs on the rise and metals prices don’t look headed higher. Further weakness in operating cash flow could see dividend cut. For all of our latest share tips and trading ideas sign up for FREE 7 Day Trial and gain full access our research files.
Share To Buy Telstra Limited (TLS)
Telstra Corporation Limited (TLS) is a full service domestic and international telecommunications provider and is without question the dominant telco in Australia. The company provides telephone exchange lines to homes and businesses, supplying local, long distance and international telephone calls and supplying mobile telecommunications services. TLS also provides data, internet, on-line services and directory services. TLS has five key business segments:
>> Telstra Consumer and Country Wide, which is responsible for servicing metropolitan, regional, rural and remote parts of Australia with a full range of products and services. >> Telstra Wholesale, which provides a wide range of wholesale products and services to the Australian domestic market. >> Telstra Business is responsible for serving the unique needs of Australia’s small to medium enterprises (SMEs). >> Telstra Enterprise and Government unit is responsible for providing innovative Information and Communications Technology (ICT) solutions to large corporate and government customers in Australia and New Zealand. >> Other, which includes all division that are not covered above and includes; Telstra Operations, Sensis and Telstra International Group. >> Revenue over the year grew by 1.9% to $26 billion. >> Net profit for the year came in at $3.9 billion a 12.9% increase on the prior year’s result. The profit increase was ahead of consensus estimates of $3.69 billion. >> The strong results continue to be driven by a lead mobile growth with revenue rising by six per cent to $9.2 billion. >> The mobile division added 1.3 million subscribers for the year, which is likely the result of glitch-plagued Vodafone Australia whose network infrastructure has become overstretched. >> Telstra continued to build momentum in its Network Applications and Services (NAS) portfolio, with revenue increasing 17.7% for the year. >> The group returned a dividend of 28 cents per share fully franked dividend for FY13.
Atlas Iron (AGO) Buy Share
Atlas Iron (AGO) is an iron ore producer and explorer located in Western Australia. The company has a growing number of high quality iron ore projects and one of the largest landholdings in the lucrative Pilbara region. AGO is now one of the area’s largest iron ore producers. The company has a significant number of direct shipping ore (DSO) projects in WA. DSO projects are those that are in close proximity to ports, which helps to significantly lower capital costs. AGO has several projects in varying stage of development, with its Abydos mines in production and its Mt Webber mine due to e commissioned in December. Key Points: Quarterly Production:
>> A record 2.4 million tonnes of iron ore shipped in third quarter, up from $2.2 Million tonnes in the previous quarter >> Production rate of 10 million tonnes achieved in the quarter >> Operating costs for the quarter were within the $49-$53 region >> Average sale price increased 9% from the previous quarter to USD 117 a tonne, which on an Aussie dollar basis would have been much higher
Crown Limited (CWN) Share To Buy
Crown (CWN) manages a variety of gaming and entertainment facilities, including, bars, restaurants, nightclubs, cinemas and retail outlets. It also develops hotels and conference centre facilities. The company wholly owns and operates two integrated resorts; the Crown Entertainment Complex in Melbourne and Burswood Entertainment Complex in Perth. Mr James Packer currently owns a 50.1% stake in the group. CWN also has an interest in several different projects including:
>> 33.7% interest in Melco Crown Entertainment (MCE), which is based in Macau >> 50% interest in online gambling site Betfair >> 24.5% interest in Cannery Casino Resorts in the US >> 50% interest in Crowns Aspinall’s (UK) which operates three regional casinos in Newcastle Swansea and Northampton >> Normalised operating revenue grew 5.6% to $2.89 billion >> Net profit before significant items came in at $473.2 million, a 14% jump on FY12 >> The groups’ total dividends over the year were 37 cents a share, fully franked, which was in line with the previous year’s payment >> The groups EBITDA margins were very impressive, especially in Melbourne where it grew 140 basis points in the 2H13 to 28.5%. The expanding margins a result of a continued cost-out focus and came despite a negative margin mix shift between higher proportion of VIP play relative to the main floor >> The group’s recent refurbishment of the Burswood casino started to pay benefits, with main floor gaming growth of 9.7%. This result especially pleasing given the weakening Perth consumer environment
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Nov 2014 - Nov 2016
Our short-term focused Trading Report returned 30.03%, outperforming the ASX/200 Accumulation Index by 6.45%*
DISCLAIMER: *Performance is derived from recommendations provided by Australian Stock Report’s Trading Report, opened on or after date of acquisition in Nov 2014 *Return figures are gross returns and do not take into account fees or brokerage costs. *Returns are calculated based on a $50,000 hypothetical portfolio, risking 2% of the overall portfolio balance ($1,000) as a starting point for each trade. *Due to slippage and gapping, losses can sometimes exceed $1,000 on an individual trade. *Opening and closing prices for trades (and therefore the prices used for determining aggregate profit/loss) will be those published on the Australian Stock Report website and will be determined by the price at which they could realistically be executed in the market at the time the recommendation is published. *ASX 200 Accumulation Index Return is calculated based upon the price of the index at the start of the session on the day the first ASX 200 trade was placed, i.e. 24.11.2015
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