In this section we look at all the important announcements affecting companies this week.

  • Netwealth (NWL) – Listed this week at $3.70 raising $264m. The company is an investment platform and the fifth specialist investment platform operator. The share price represents 32.2x forecast 2018 earnings short of the 45x 2018 earnings HUB24 trades at, according to Ord Minnett. Praemium, trades at 50x 2018 numbers. NWL is trading at a forward PE multiple of 67, Hub24 is 54 and Perpetual is 18.
  • Costa Group (CGC) – UBS has downgraded the stock to Hold from Buy and is says there isn’t a whole lot of upside left from here on in. This comes despite the company’s earnings upgrade to 20%.
  • Virgin Australia (VAH) – Last week shares were up more than 20% after Geoff Wilson from Wilson Asset Management said the airline is at the early stages of a turnaround, similar to Qantas three years ago.
  • BHP Billiton (BHP) – The Samarco disaster is closer to reaching a deal. The preliminary agreement outlines the process and timeline for negotiation of a settlement of US$47.6bn and Public Civil Claims (approximately US$6.1bn) relating to the dam failure.
  • Carsales (CAR) – AGM – Has announced that it will purchased the remaining 50.1% stake of a joint venture in South Koren SKEncar.com. This now gives CAR a 100% control and ownership of South Korea’s number one online auto classifieds business.
  • Orocobre (ORE) – UBS have a Buy recommendation with a target price of $7.00. Current Price $5.80. The broker is quite bullish on the stock after ORE provide guidance for 14kt of lithium carbonate from Olaroz. UBS thinks the guidance is conservative and expects further upside potential.
  • AuMake (AU8) – Share continue to rally after the company announced a strategic alliance with Australian Made Campaign Limited that will give it access to a database of 2700 Australian Suppliers. The deal will also promote a wide range of genuine Australian products/suppliers to AuMake. The George Street store opens 27th November.
  • Baby Bunting (BBN) – Shares have fallen after the company issued a profit downgrade. It now expects FY18 EBITDA to be around $23m with sales growth of 4%.
  • Sydney Airport (SYD) – Has reported its traffic numbers. Passenger numbers are still strong at 5.8%. 43m passengers through the three terminals in the last 12 months.
  • Alibaba has bought a stake in China’s biggest operator of Wal-Mart-style hypermarkets for US$2.9bn. It follows on from Amazon buying Wholefoods. It seems tech companies are gobbling up bricks and mortar retailers.
  • ALS Limited (ALQ) – Shares have fallen this week on its HY result. Whilst the result was within guidance and it came with $175m buy back and higher dividend, the result included a one off impairment on its assets. This time in its coal testing division. The market wasn’t impressed.
  • A2 Milk (A2M) – Continues to hit record highs. Shares rose more than 5% this week on its AGM and market update. The company said revenue in the four months to October 31 was up nearly 69% at NZ$262.2m driven strong growth in nutritional products in Australia, New Zealand and China, as well as positive momentum in the US and UK.
  • Specialty Fashion Group (SFH) – Shares down on their AGM. The company copped its first strike on remuneration and the company will close 300 stores.
  • Qube (QUB) – Shares have fallen after the company issued a soft guidance outlook. The company said that 2018 financial year remain similar to FY17 with pressure on rates from the ongoing competitive dynamics in Qube’s key markets. The extent of growth in earnings in the Ports & Bulk division will be influenced by conditions across commodity markets, particularly strength in forestry volumes, vehicle volumes as well as any recovery in activity levels in the oil and gas sector.
  • Wesfarmers (WES) – Shares were up after a report did the rounds saying that newly entrenched CEO Rob Scott was under pressure by shareholders such as Airlie Funds Management founder John Sevior to demerge Bunnings. It makes 30% of group and is worth half of the company’s $48bn. It’s the company’s most valuable asset.
  • Webjet (WEB) – Online travel services business Webjet was the worst performing name in the top 200, plunging 12 per cent after a trading update at its annual general shareholder meeting that included a disappointing earnings outlook.
  • Sonic Healthcare (SHL) – Has reaffirmed FY earnings guidance at its AGM. Earnings are tipped to grow by 6%-8% up from $889m in 2016/17 driven by solid gains in its laboratory and imaging divisions.
  • Webjet (WEB) – Shares have tumbled after the online travel agency issued a guidance downgrade. It expects negative cash flow in the 1H18 due to a one-off acquisition cost sustained from the European travel business JacTravel acquisition. It expects EBITDA of about $80m which is below what analysts were expecting.
  • Automotive Holdings (AHG) – Is selling its Refrigerated Logistics business to HNA International for $400m on a debt and cash free basis. Proceeds will provide AHG with additional financial capacity to grow its Automotive Retail operations, as well as flexibility to undertake capital management initiatives.
  • Propel Funeral Partners (PFP)Had a successful IPO listing this week. Shares rising some 30% to $3.55. Issue price was $2.70. The company is the second biggest operator after Invocare with 80 outlets from a standing start in 2012. The company provides a broad range of services and products across the death care industry to meet the needs of its customers.
  • SelfWealth (SWF)The Australian trading platform listed on the ASX on Thursday. The platform offers a flat fee for its brokerage and has 1690 active clients. The company floated at 20c but closed down 20% on its first day at 16c. The stock is described as the ‘Facebook for investors’ and is an online community for investors. The optional premium subscription for the “social network” feature lets users compare portfolios and follow SelfWealth-accredited super investors for $20 a month.
  • Coca-Cola Amatil (CCL) – CCL released presentation ahead of its investor day in Indonesia. The company reaffirmed FY17 NPAT to be broadly in line with FY16 i.e. NPAT of $418m. What the market didn’t like was a warning that FY18 will be impacted by the pull-forward of its reinvestment plans. That is $40m of P&L investment in 2018 from the expected cost savings to be realised in 2019 and 2020. Shares closed at its lowest level in a decade.