In today’s daily we have covered stock research on Trade Me. To view 4 Growth + Dividend Stocks to buy click here

S&P 500 was down by 2.58 points or 0.14% to 1875.63 on Thursday. U.S. stocks mostly fell on Thursday with the S&P 500 and the Nasdaq closing lower, led by losses in the energy and utility sectors. The Nasdaq ended lower for a third straight session, its longest losing streak since early April.  A turnaround in beaten-down internet stocks had boosted the Nasdaq earlier in the day, while a drop in initial jobless claims suggested the labor market was improving and had helped lift the broader market. A late sell off in utilities and energy, among the best performing sectors recently, dragged the S&P 500 and the Nasdaq to session lows.

The S&P utility sector index fell 1.2 percent and the energy sector index was off 1.3 percent. Of 445 companies in the S&P 500 that have reported earnings through Wednesday morning, 68.2 percent beat expectations, above the 63 percent average since 1994 and the 66 percent beat rate for the past four quarters, according to Thomson Reuters data. U.S. Federal Reserve Chair Janet Yellen, in testimony to a Senate panel, said no decision had yet been made on the central bank's portfolio of assets, which has swollen to $4.5 trillion from about $800 billion in 2007. If the Fed ultimately shrinks it to a pre-crisis size, the process could take the better part of a decade, Yellen said.


S&P 500 Daily Chart   (Source – Thomson Reuters)
 
S&P ASX 200was up by 41.0 points or 0.75% on Thursday and closed at 5476.8 points.Cheung Kong Infrastructure of Hong Kong has made a $2.37 billion bid for Envestra just days before there was a vote on the $2.1 billion APA Group’s bid. NAB reported cash earnings up 8.5% to $3.15 Billion for the 6 months to March 31.

Westfield looks to win the vote on corporate restructure. Caltex Australia’s refining business  recorded a loss of $41 Million in the march Quarter down from $43 million gain a year earlier. Shares in Nexus Energy have slumped to their lowest level in more than a decade after Seven Group Holdings refused to lift its $26.6 million takeover offer for the struggling oil and gas company.The Australian dollar has bounced after the economy added more jobs than expected during April


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

The top gainers on ASX 200 were:- 



Stock of the Day – Trade Me  (TME)
 
Trade Me is the leading online marketplace and classifieds business in New Zealand with a highly engaged community of close to 2.8 million members. It has a diverse and comprehensive range of listings, with listings across new and used goods, automotive employment, real estate, accommodation, dating and group buying.

Trade Me announced subdued results for the first half fiscal 2014 as margins continue to decline from growth in operating expenses. Total revenue increased 6.6% driven mainly by classifieds, but operating costs rose 19.1% reflecting increased investment in product development, brand building and staffing. EBIT was flat reflecting higher operating expenses and increased depreciation costs resulting from acquisitions.


Source - TME

We believe expenses in the second half will be higher than the first half because of acquisition and brand building costs and consequently expect margins to dip further. While the classifieds business continues to be a star performer, the general items market place continues to see weak growth as both the new and old goods categories underwhelm. This is an area where Trade Me is focusing to deliver mid-single digit growth in the long term.


TME Daily Chart  (Source - Thomson Reuters)
 
Top line growth of 10% to 11% on average during the next five years will still be aided by classifieds and other businesses. General items market place was flat on a like for like basis, taking into account last year’s accounting adjustment. Gross merchandise sales, or GMS grew slightly for both new and old goods. We believe the stock is slightly overvalued at its current price and would review the stock at a later date.

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