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

  • RCG Corp (RCG) – Shares are on a tear rising 12.7% after retail billionaire Brett Blundy upped his stake and emerged as the biggest single shareholder. He now owns an 11.8% stake in the footwear retailer.
  • Telstra (TLS) – Shares fell early on in the week after the NBN said that it would halt its broadband rollout. As if things couldn’t get any worse. The halt of HFC connections (pay TV network) is effective immediately due to poor service. The halt is to be effective until the NBN can rectify problems experienced by some users. Telstra responded to that announcement by telling investors that it would be taking a look at its full-year financial guidance as it could hit the bottom line.
  • Downer EDI’s (DOW) – Shares rallied this week after the engineering group upgraded FY profit due to better-than-expected cost savings as it secured an 87.8% stake in Spotless this year.
  • Broo (BEE) – Shares were up 30.5% hitting its highest level in a year, on the back of a $120m Chinese distribution deal.
  • Macquarie Bank (MQG) – Shares have finally topped $100 rising almost 20% in 12 weeks from a low of $82.70 on September 8. Shares have been trading higher ever since late October when it announced an on-market buyback of up to $1 billion and a first-half profit of $1.25 billion.
  • Origin Energy (ORG) – Upgraded guidance for FY output from its Eraring plant. Output in 2017-18 is now expected to be between 15.5 terawatt-hours and 16 terawatt-hours, about 6% higher than its August forecast. ORG shares are hitting 26 month highs.
  • IOOF (IFL) – Shares rose this week after Morgan Stanley upgraded to “overweight” from “equalweight” saying the wealth manager’s increased exposure to Australia’s growing super and pension system as reason for the upgrade.
  • Tatts Group (TTS) – 1Q profit was up 15% driven by a string of bigger than usual multimillion-dollar lottery jackpots. Revenue was up 6.8% to $743.1m. Digital lotteries which makes up 16.4% of all lotteries, was up 30% this year.
  • Macquarie’s Australian equity strategy says 2018 will be the year of Growth to outperform Value. Its picks include: service-orientated consumer discretionary stocks such as Corporate Travel, Navitas, Invocare and Tatts Group as well as tech stocks such Computershare, Iress and TechnologyOne. Junior miners such as Galaxy, Orocobre, Regis Resources and Northern Star bring up the rear along with industrials such as ALS, CIMIC and Qube. Growth stocks such as Costa Group, CSL, Cleanaway, Domino’s PIzza, Invocare, Link Administration, REA, Ramsay Health Care, Reliance Worldwide, TechnologyOne and Transurban all trade on high PE multiples, with above-average EPS growth and EPS certainty over this period.
  • Deutsche Bank’s Australian equity strategy is to buy into consumer stocks because they are already out of favour and while households are income-poor, they’re asset rich. That means they could ramp up spending for Christmas. It adds JB Hi-Fi and Scentre. Upweight Woolworths and is happy to hold Harvey Norman. Switch from Commonwealth Bank to NAB. Miners are good to own. It remains nderweight defensives. Cyclicals have better earnings revision momentum. No exposure to telcos, infrastructure or regulated utilities.
  • BHP Billiton (BHP) – Unit costs at its Australian mines can be cut by a further 10%. The miner said its Australian mines would deliver 80% of the US$2bn in productivity gains over the next two years. Iron ore is expected to deliver costs of around US$13 per tonne down from US$14.60 in the year ended June 30.
  • AWE Energy (AWE) shares hit close to +23% following a $430m takeover bid from a Chinese energy group. The company has rebuffed the offer as being
  • Aristocrat’s Leisure (ALL) – Announced a strong set of results together with a $1.4 billion online gaming acquisition. Shares did end the day lower.
  • OrotonGroup – It all over. The company has called in the administrators after the board was unable to source a viable solution which could achieve a better outcome than voluntary administration. ORL was experiencing challenging trading conditions and posted an earnings downgrade in addition to the commencement of a Strategic Review. Stores will continue to trade. GAP store closure is by the end of January 2018.