Australian Stock Market Report – Brambles, TPG, Telstra Shares & more

Australian Stock Market Report - Brambles TPG Telstra Shares

The Market Last Week, Next Week and Stock tips - 21st April 2017

Highlights

Will Britain suffer election fatigue? – Reserve Bank – do they have tunnel vision on housing prices-or should they see Spec Savers? – Tatts- suitors are getting more excited – Brambles pallets are delivered on time and on budget – Motor car sales stall – Challenger impresses with annuities.

Mrs. May more attracted to June

Theresa May seeks endorsement as Britain’s Prime Minister, as she pilots the UK’s ship of state out of the European Union. If recent voting trends are any indication, Mrs. May is a ‘shoe in’ to increase her party’s majority when Britons go to the polls on June 8th. Such as result would then give Mrs. May enhanced gravitas in navigating the shoals of negotiation in UKs exit from the EU.

Bottom Line: - Reserved for clients

Share market doesn’t hang up on Telstra

Up-start mid-size telco stock TPG shocked the telco cognoscenti by flagging its prospective entry into the mobile phone space - thereby encroaching on what has been the prime reserve of Telstra. However the knee-jerk reaction of this announcement saw Telstra’s share price fall from $4.58 to $4.00 in the space of a couple of days. However, by weeks end around half of this retracement had been erased.

Bottom Line: - reserved for clients

The Lotto balls fall Tatts way

The titanic struggle to become “Lotto Supremo” between TABCORP and a group called Pacific Consortium (which includes such notables as Macquarie Group among others), heated up last week. The Pacific Group upped  the ante with a takeover price for Tatts shares of $4.21 which appears to be slightly in excess of TABCORP’s cash and scrip offer, Time will tell but my guess is that TABCORP will up its offer.

My View: - reserved for clients  

Brambles – the pallets are getting stacked higher

Australian born pallet maker Brambles delivered a quietly satisfactory trading update this week. Its profit guidance that it gave at its previous report was confirmed. Nevertheless Brambles future profit growth is somewhat underwhelming. Until such time as its outlook steps up a gear, I believe that other options are preferable.

Conclusion

There are always storm clouds flitting over the share market skies from time to time. But they are usually gone as soon as they appear. Investors are far better off looking at the longer term forecast, and in my view, the longer term looks ok. In particular, the US, Asian Chinese  are doing quite well, and European economies and recovering while here in Australia, the International Monetary Fund is the most positive on our economy than I have seen in many years.

Stock Tips

Reserved for clients

Michael Heffernan stock tips

Looking ahead in Australia

On Wednesday – Consumer Price Index and skilled vacancies

On Thursday – Export/import price index

On Friday- Producer Price Index.

Looking ahead in the US

A range of manufacturing and industrial production data; house sales information, and weekly jobless figures.

 

Disclaimer: This publication has been prepared solely for the information of the particular person to whom it was supplied by Phillip Capital Limited (“PhillipCapital”) AFSL 246827.  This publication contains general financial product advice.  In preparing the advice, PhillipCapital has not taken into account the investment objectives, financial situation and particular needs of any particular person.  Before making an investment decision on the basis of this advice, you need to consider, with or without the assistance of an adviser, whether the advice in this publication is appropriate in light of your particular investment needs, objectives and financial situation.  PhillipCapital and its associates within the meaning of the Corporations Act may hold securities in the companies referred to in this publication.  PhillipCapital believes that the advice and information herein is accurate and reliable, but no warranties of accuracy, reliability or completeness are given (except insofar as liability under any statute cannot be excluded). No responsibility for any errors or omissions or any negligence is accepted by PhillipCapital or any of its directors, employees or agents. This publication must not to be distributed to retail investors outside of Australia. 

About Michael Heffernan

+61 (3) 8633 9925 Email Profile

Michael Heffernan has over 30 years’ experience in the finance and securities industry and is currently a Senior Client Advisor and Economist with a leading Australian Sharebroker Phillip Capital after having been Chief Economist/Lawyer with the Australian Stock Exchange for 13 years, and an Economist with Commonwealth Department of Employment and Industrial Relations for 11 years.

Most recently Michael topped the poll of the Australian Newspaper's Criterion column of his expert tipsters for 2014 with an average increase of 26% over the year. Also Michael was named Stock Picker of the year 2013 and 2016 at the Australian Stockbrokers Foundation Annual Awards Charity Dinner.

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