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Kalkine Daily 02/07/2015 + Cabcharge

Jul 02, 2015

| Read Time :10 Mins

In today’s daily we have covered stock research on Cabcharge (EXPENSIVE) and 5 Stocks To Buy In The Recent Correction.

The S&P 500 was up by 14.31 points or 0.69% to 2077.42 on Wednesday. U.S. stocks closed higher on Wednesday, lifted by consumer staples and discretionary stocks, though indexes ended off the session's highs as energy stocks declined and Greece's debt crisis showed no clear sign of resolution. Shares of major US airlines were grounded on Wednesday following a report that US Justice Department is investigating whether carriers are colluding to support the level of airfares.

More signs that the US economic recovery is back on track. The US economy added 237,000 jobs in June, up from the revised 203,000 reported a month earlier and the best showing so far this year, according to a survey from payroll processor ADP. Online travel heavyweight Expedia is changing certain key terms of its agreements with European hoteliers, including on price, in response to investigations by European competition authorities. Ace will pay $28.3bn in a mix of shares and cash for Chubb, the companies said in a statement on Wednesday.

Expedia Daily Chart (Source - Thomson Reuters)

S&P ASX 200 was up by 56.70 points or 1.04% on Wednesday and closed at 5515.70 points. Rio Tinto fell 1.4 per cent to $53.01, while BHP Billiton fell 1.5 per cent to $26.65. Fortescue MetalsGroup was whacked the most, down 4.2 per cent to $1.83, while Arrium fell 3.7 per cent. The bank stocks helped the market return to strength. National Australia Bank gained 0.5 per cent,Westpac added 0.7 per cent, ANZ rose 0.9 per cent while Commonwealth Bank gained 1 per cent.

The big share winner of the day was Australia's biggest port and rail operator Asciano, after its shares were released from a trading halt upon an announcement that Canadian asset managerBrookfield lobbed a $9 billion dollar takeover offer. Crown Resorts was also among the day's winners, up 5 per cent on news that transit visa restrictions in Macau were lifted. Tasmanian salmon farmer Tassal Group's shares rose 8.1 per cent after it announced it had bought De Costi Seafoods.

Crown Resorts Daily Chart (Source - Thomson Reuters)

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Cabcharge (Expensive)

The company reported a statutory net profit after tax (NPAT) of $ 31.2 million for the half-year ended 31 December 2014. The results are a reflection of the revenue decline arising out of a price cap on service fees in Victoria and New South Wales as well as lower contribution from associated companies. This NPAT translates into an EPS of 25.9 cents per share and reflects a 13.4% decline on the figure from the first half of 2014. The Board of Directors has declared a fully franked interim dividend of $ .10 per share.

This NPAT is down 6.5% on the first half of 2014 because of the cap on service fees imposed by Victoria as well as New South Wales (for part of the period). With the loss of bus contracts in regions 1 and 3 of Sydney and the implementation costs connected with the new contract for region 4, equity accounted net profit contribution from associates declined by $ 3.3 million to $ 8.4 million, a decline of 27.7%. To Read The Full Report Click Here

Financial Highlights (Source - company Reports)

Five Stocks To Buy In The Recent Correction

REA Group Limited

REA Group Limited (ASX: REA) has plunged over 17.3% in the month of May partly attributed to the lower than expected results by its major shareholder News Corporation (which has 61.6% interest in REA Group).

However, News Corporation’s Digital Real Estate Services segment revenue delivered 48% increase in revenues in year over year terms to $141 million, partly driven by $34 million by REA Group and $107 million by Move (in which REA group investedand $231 million). Moreover, for the nine months ended on 31st March 2015, REA Group‘s revenue increased by 21% to $384 million, as compared to the corresponding period in last year, which we believe is a decent performance.The group has also improved its earnings per share by 34% to 71.8 cents as compared to 53.7 cents in the prior year’s corresponding period. Click Here To Read The Full Report

REA Group Revenue(Source - Company Reports)

Level 13 167 Macquarie Street
Sydney NSW 2000 Australia
E-Mail - [email protected]
Phone - 02 8667 3147

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