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

  • Aconex (ACX) – Oracle has lobbed a $1.56bn or $7.80 cash per share bid for the entire company. It sent shares in ACX soaring by 45%. Management has unanimously recommended the offer, with shareholders of the cloud-based project management company scheduled to vote on the bid at a scheme meeting in March next year.
  • Cimic (CIM) – Has been awarded a $312m Tunnel Rail Works Contract from Victoria which will support the $11bn Metro tunnel project. Construction is set to commence next year, to be completed by 2026.
  • Crown Resorts (CWN) has agreed to the $150m sale of its 62 per cent stake in bookmaker CrownBet and expects to complete the divestment by the end of February.
  • Dulux Group (DLX) – The company’s majority-owned DGL Camel International will sell most of its coatings portfolio in Hong Kong and mainland China to Yip’s Chemical Holdings. DLX owns 51% of the JV. Earnings in the HK-China region is expected to be in line with last year.
  • Yowie (YOW) – Shares have fallen following a profit downgrade. The company cut its FY sales guidance and replaced its CEO. Net sales are now expected to grow by 17% down from 55% that was previously expected.
  • Lovisa (LOV) – The jewellery chain have nailed Xmas sales and defied expectations by posting a 7.4% rise in sales for the December half and upgrading its FY profit outlook. Christmas and Boxing Day sales were stronger than expected. It now expects EBIT to fall in between $34.5m-$35m.
  • Galaxy Resources (GXY) shares are back on the run, hitting an all-time high of $4.25 on the back of the strong demand linked to electric vehicles. UBS upgraded its raw materials forecasts on a better electric vehicle sales. The broker sees lithium rising almost five times by 2025.
  • Suncorp (SUN) – Has flagged up to $170m in damages from the Melbourne hailstorm. There were in total some 25,000 insurance claims after 100k Victorian households were left without power after strong winds toppled trees and powerlines. SUN’s hazard claim costs are $60m-$70m above the allowance for the half.
  • ResApp Health (RAP) – Shares rose 9% after the company enrolling its first patient to evaluate its smartphone app in the diagnosis of childhood respiratory diseases via cough sounds.
  • Brambles (BXB) – Has landed a deal to sell North American whitewood pallets business CHEP Recycled to private equity firm Grey Mountain Partners for US$115m. CHEP Recycled supplies and recycles over 90 million pallets annually.
  • Retail Food Group (RFG) – Shares have taken a dive following the second profit downgrade in three weeks. The owner of Gloria Jeans and Donut King has said it can no longer achieve a profit of $22m for the FY. It blames a new master franchise agreement for its Crust Pizza and Donut King franchises in the UK that won’t be received until the 1H18.
  • Magellan Financial Group (MFG) – Announced Funds under management fall to $57.9bn from $58.6bn. That didn’t stop Morgan Stanley releasing a positive research report on the company. Shares rallied on the back of this report.
  • Platinum Asset Management (PTM) – In similar fashion, PTM shares rallied this week on the back of its funds under management report. Unlike MFG, PTM’s FUM rose to $27.1bn at the end of December, up $80m that month. PTM looks to have turned a corner with brokers who were once bearish on the stock, now upgrading their recommendations.
  • Praemium (PPS) – Shares are hitting record highs after the company released its funds under administration (FUA) update. PPS posted gross inflows of $764m for the December which brings its total FUA to over $7.4bn, up 37% on the pcp.
  • Vita Group (VTG) – Finally some good news. The company has been plagued with poor sales and profit downgrades. This week it said that it expects to deliver earnings of $20m for the six months to 31 December 2017 which is up from an expected $16m-$18m. Despite the slightly good news, we’re still very cautious of this stock.
  • Aumake (AU8) – Has disappointed markets by pulling the pin on a proposed capital raising. The Prenzler Group who were underwriting the offer, terminated the agreement. It’s concerning to say the least.