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Category — Miscellaneous Stocks

Profits: Bradken’s Bounce, Cochlear’s Loss, Transurban’s Surge

Mining and rail equipment manufacturer Bradken is on track to meet earlier guidance for a 40% lift in full year profit after a 65% jump in first half earnings.

The company yesterday reported a net profit of $43.05 million for the half year to December 31, up 65.6% and told the market that “Excluding one-off adjustments … we confirm the current guidance of EBITDA growth of 25 per cent to 30 per cent with NPAT growth in the range of 35 per cent to 40 per cent over FY11 adjusted results”.

On an operating (underlying) basis, profit of $43.1 million was up a more modest 13%, after eliminating the impact of one-off items from the previous interim result.

Bradken directors said the booming mining sector had seen demand for it’s products reach historically high levels, with the company expanding operations in Australia, North America and Asia.

As a result sales revenue jumped 28% in the half year to $683.2 million.

And revenue from the mining products division rose 26% on the previous corresponding period but reduced sales of ground-engaging tools (earthmovers, etc) had a negative impact.

Bradken expects the latter business to expand sharply in the current half year.

Pressure from Chinese competitors also led to lower margins in the rail division, although sales revenue was up 56%. [Read more →]

February 8, 2012   No Comments

Deals: Cardno’s $100 Million US Deal, Fund Raising

Perth-based infrastructure services group Cardno Limited certainly picked the right day to reveal a $100 million deal in the US and a fund raising of the same size.

It picked the best trading day on the market for more than a week, and also scored on the currency side of the deal with the Aussie dollar around three month highs, which made the US dollar price that much lower.

With the wider market up around 1% or 44 points, Cardno told the market before trading started yesterday that it was buying US group ATC Associates (a specialist in environmental consulting and services, building sciences, geotechnical engineering and construction materials testing  for a total of $US106 million (A$99 million).

Cardno said it will pay $US101 million on settlement next month and another $US5 million in 18 months. The transaction is expected to be effective 1 March 2012. [Read more →]

February 7, 2012   No Comments

Updates: Argo Profit Down, Dividend Steady, Downer Shares Up On Rail Deal

Listed investment company Argo Investments has joined most of its competitors in revealing the impact of the weak stockmarket on its interim result.

Despite a 4.7% fall in net profit to $85.8 million for the half year, the company will maintain a 13c a share interim dividend because the result was better than it looks.

Revenue fell 5.8% to $93 million, but comparison with the first previous first half is misleading because the latter contained one-off transactions worth $11.4 million.

That boosted profit for the half year to December 2010 to $909 million. Strip that out and Argo has managed quite a credible result for the latest period.

“Overall, the company has delivered another solid result in uncertain economic conditions and despite a period of weaker equity markets, including the Australian market which dropped 11.8 per cent in the six months under review, “chief executive Jason Beddow said in yesterday’s announcement.

He said the global economic outlook remained uncertain. Tentative signs of improvement in the US economy have been overshadowed by the continuing deterioration of the sovereign debt crisis in Europe. [Read more →]

February 7, 2012   No Comments

Why Your Money is Better Off in Stocks Than in the Housing Market in 2012

Why Your Money is Better Off in Stocks Than in the Housing Market in 2012
by Kris Sayce on 2 February 2012

If you read the mainstream you probably think it’s bad news for Australia if house prices keep falling.

That it’ll be bad for the banks (which it will be). And that the entire Aussie economy will grind to a halt.

But what if that doesn’t matter?

What if falling house prices is actually a good thing?

In a moment we’ll explain why bad news for the housing market could mean good news for stocks
But first, some in the mainstream still can’t accept what’s happening. [Read more →]

February 2, 2012   No Comments

Updates: Markets’ Great January, ERA’s Loss, Funtastic Recovers, Boral Quits Indonesia

Updates: Markets’ Great January, ERA’s Loss, Funtastic Recovers, Boral Quits Indonesia
February 02 2012 - Australasian Investment Review – (AIR)
So how did markets go in January?

Australian shares had a very solid month, among the best of major markets and outperformed the US and some European bourses.

The market rose 5.1% last month, its first monthly rise since October, which lifted market value by around $65 billion.

That was a solid reply after the 14.5% drop in 2011 for the local market.

And the Australian dollar rose by just under 5% against the US dollar in January, on the trade weighted index it was up 2.6%.

It hit new highs against the euro in January and multi year highs against the UK pound. [Read more →]

February 2, 2012   No Comments

Changes: Woolies Gets 3 New Directors/Transurban Loses CEO

Changes: Woolies Gets 3 New Directors/Transurban Loses CEO
January 31 2012 - Australasian Investment Review – (AIR)

On the eve of releasing what are expected to be average second quarter and first half sales figures, Woolworths Ltd has revealed three new directors, two of whom have considerable retailing success stories, though from different sides of the aisles.As well, Woolies also gets a high powered former banker, handy even for a company as large and cash rich as Woolworths, which is the country’s biggest supermarket chain.

Woolies yesterday announced that Christine Cross, David Mackay and Michael Ullmer had been appointed non-executive directors. The three take up their board positions immediately.

Ms Cross retired as an executive of UK supermarket chain Tesco in 2003 and now runs a retail advisory consultancy.

Currently, she is a non-executive Director of clothing retailer Next in the UK.

She becomes the only non-executive director on the board with retailing experience. [Read more →]

January 31, 2012   No Comments