S&P 500was down by 11.48 points or 0.61% to 1860.77 on Wednesday. U.S. stocks fell for the first time in three days as Federal Reserve Chair Janet Yellen said the central bank’s stimulus program could end this fall and benchmark interest rates could rise six months later.

Stocks turned lower today as the Fed’s statement said officials predicted their target interest rate would be 1 percent at the end of 2015 and 2.25 percent a year later, higher than previously forecast, as they upgraded projections for gains in the labor market. The central bank said it would trim its monthly bond purchases by $10 billion, to $55 billion. The Fed has kept overnight rates near zero since December 2008 and has bought more than $3 trillion in long-term debt to keep borrowing costs down and spur investment and hiring.


S&P 500 Daily Chart   (Source – Thomson Reuters)

 
S&P ASX 200 was up 11.0 points or 0.21% and closed at 5355.60 points on Wednesday. Rio Tinto will seek a fresh start on its protracted bid to expand a Hunter Valley coal mine as it submits a new set of proposals for development of the Mt Thorley Warkworth project. Stockland has confirmed it is the buyer of a strategic stake in Australand Property Group and said it now owns 19.9 per cent of Australand’s shares on issue.

United States prosecutors are investigating potential conflicts of interest in multibillion-dollar government infrastructure tenders, including a bridge contract won by Australia’s Macquarie Group.


S&P ASX 200 Daily Chart (Source – Thomson Reuters)

The top gainers on ASX 200 were:-
 

Code	Name	Price	Change	%Change
WTF	WOTIF.COM	$3.00	$0.56	22.95%
CDD	CARDNO	$6.66	$0.33	5.21%
NUF	NUFARM	$4.20	$0.20	5.00%
HZN	HORIZON OIL	$0.325	$0.015	4.84%
GWA	GWA GROUP	$3.00	$0.13	4.53%

 

Stock of the Day – Ansell (ANN)

Ansell is a global provider of health and safety protection solutions, employing more than 10,000 staff in the Americas, Europe and Asia. The firm designs, develops, manufactures and markets a range of surgical, medical examination, industrial and household gloves, protective clothing, and condoms. Ansell is a global leader in several product categories. In 2002 having progressively divested its non-glove businesses, the listed Pacific Dunlop changed its name to Ansell Limited.

Ansell reported mixed first fiscal 2014 results with reported net profit after tax or NPAT up 15% on first half fiscal 2013 to USD 65.6 Million. Acquisitions drove the results while organic growth was soft. Importantly we think Ansell’s growth strategy is showing encouraging signs with the benefit of acquisitions and new product developments which will improve long term organic growth.



Source - Ansell
 
Ansell reiterated full year guidance of reported earnings per share or EPS in the range of USD1.10 to USD 1.16 but this includes some one off items. Ansell is a high quality business that is built on strong brands, product innovation and low cost manufacture. While some products are commoditized, the portfolio increasingly compromises of innovative, differentiated products that in many cases enjoy patent or trademark protection.


Ansell Daily Chart  (Source - Thomson Reuters)

Ansell spends a little more than 1% of revenue on research and development. This may not be sufficient to generate sustainable, intellectual property advantage. Ansell has exhausted the low hanging fruit in terms of suitable, well priced acquisition opportunities. Increasingly future acquisition targets will be well run businesses with less unexploited potential so offering less upside. We like the Ansell story but think that the stock is expensive at its current price and would review the stock at a later date.

---

Disclaimer
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people.
Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376).
The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation.
Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product.
The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide.