Australian Stock Market Report – CBA, AMP, AGL & more

Australian Stock Market Report - CBA, AMP, AGL shares & 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.


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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