Australian Stock Market Report – CBA, AMP, AGL & more
Selected Highlights and Stock tips
As is usual now in reporting season, it is not just a matter of companies announcing good results that counts, what they also have to do is beat what is the consensus view of broker analysts in the market place. On the other hand, if a company delivers a poor result but it beats consensus expectations, its share price can move up sharply after the announcement.
And the reporting season so far has contained all of the elements of the above. So let’s go.
First let’s start with CBA – a workman like result. After allowing for the approximate $1 billion worth of fines and additional compliance costs in the last financial year, its profit was actually up slightly compared to last year. And believe it or not, and despite all the bad press over the year, its dividend was also up compared to last year. My view:- and given that its under new management, the future looks quite positive now for CBA, and its dividends are mightily attractive at around 5.7% fully franked.
Next is AMP – I’m reminded of Dr Jeckel and Mr. Hyde - because its result came out on the same day as CBA’s. Make no bones about it, its result was awful. Its saving grace as far as the share market is concerned, is that some may view that its share price has been belted down to such an extent that at its current low level, it may be worth looking at. For me, as the racing tipsters say “I prefer others”.
AGL all fired up – delivered another sound result, but the commentary about its future was blurry to say the least. Accordingly its share price fell in the wake of the announcement. For me it’s an each way bet for the year ahead.
REA Group – or realestate.com. Also produced a good result but its commentary about the future was guarded to say the least. Nevertheless as it is the dominant player in the real estate market its future looks ok. However, the rate of acceleration that has been seen in its share price in recent months is unlikely to be repeated over the coming year. Still it’s a fundamentally sound stock.
Crown Resorts – a pretty respectable result – and it got a whole lot more of these well-heeled VIP foreigners to line Crown’s pockets. However its future also looks quite reasonable and its divided is a respectable 4.7% partially franked. Worth a look for those who like a bit of a punt
TABCORP – Another ok result and with the synergies (cost savings) which flow from its takeover of Tatts the future for TABCORP looks good.
James Hardie – A pretty ok result but a touch less than expected, its commentary about the future was equivocal and its share price went sharply lower. If its continued softness breaches my selling rule, reconsider,
Stock Tips – You can call Michael on 03 8633 9925 if you would like details.
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