In today’s daily we have covered stock research on Bendigo and Adelaide Bank. To view Top 20 ASX Dividends and 3 Gold Stocks to Buy, please click on the link.

S&P 500 was down by 20.05 points or 1.08% to 1845.04 on Monday. US stocks fell pushing the Nasdaq 100 Index to its biggest three-day retreat since 2011 and erasing the year’s gains in the Standard & Poor’s 500 Index, as technology shares extended last week’s selloff.

Technology shares were hit as traders dumped the biggest winners of the bull market amid concern valuations have advanced too far. The Nasdaq 100 fell the most in two years on April 4 with declines in all but four stocks. We believe current valuations make it more challenging for stocks to maintain the momentum displayed since 2013.

In commodities, copper rallied after touching its lowest level since the end of March. The metal ended 0.9 per cent higher in London at $6,675 a tonne, having touched $6,585. But Brent crude settled at $105.82 a barrel, down 90 cents, as investors bet supplies from Libya might normalize.


S&P 500 Daily Chart   (Source – Thomson Reuters)
 
S&P ASX 200was down 9.1 points or 0.17% and closed at 5413.70 points on Monday. Diageo Australia, the dominant player in the spirits market with leading brands including Johnnie Walker, Smirnoff and Bundaberg Rum, expects annual revenues and profits to be largely flat this financial year as trading conditions remain difficult.
BHP Billitonhas secured key tax exemptions for a potential $20 billion demerger of non-core assets while pushing forward discussions with governments in moves that suggest the resources giant is leaning towards approving the transaction. Struggling cattle producers will gain $2.84 billion in benefits over the next 20 years from the Abbott government’s free trade deal with Japan, our largest beef export market.
 

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


The top gainers on ASX 200 were:-

Code	Company	Price	Change	%change
RRL	REGIS RESOURCES LIMITED	$2.33	$0.11	4.95%
NCM	NEWCREST MINING LIMITED	$10.30	$0.38	3.83%
HZN	HORIZON OIL LIMITED	$0.32	$0.01	3.28%
BKN	BRADKEN LIMITED	$4.58	$0.13	2.92%
AGI	AINSWORTH GAME TECHNOLOGY	$4.01	$0.10	2.56%

 
Top 20 ASX Dividends

3 Gold Stocks to Buy
 
 
Stock of the Day – Bendigo and Adelaide Bank (BEN)

Founded in 1858 as the Bendigo Building Society as a leading regional bank operating in the consumer, small business and the rural banking sectors, Bendigo gained public goodwill after rolling out branches in locations deserted by major banks in the late 1990’s and early 2000’s. The Adelaide bank merger in 2007 diversified the bank into wholesale banking, while expanding the geographical footprint.

Bendigo and Adelaide Bank’s first half fiscal 2014 result carried few surprises, with cash profit up 9.5% to AUD 185.9 million. While bottom line growth was less robust than the bigger banks like Commonwealth Bank. Bendigo’s exposure to the agriculture sector pushed bad and doubtful debts up 13% to AUD 42.7 million during the half


Source - BEN
 
While total loan growth of 2.3% was relatively soft, a 12.5% increase in approvals during the half gives us confidence in a much more robust second half. Important to our long term view net interests margin continues to improve, costs are well controlled and loan arrears are falling.
  

BEN Daily Chart  (Source - Thomson Reuters)

While the overall result is solid we believe the below system loan growth and inferior interest and operating margins compared with the big banks illustrates Bendigo’s competitive disadvantages. A lower credit rating, the requirement to hold more capital and smaller scale operations makes it a price taker in both the mortgage and deposit markets. We believe the stock is overvalued at its current price and would review the stock at a later date.

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