In today’s daily we have covered stock research on CSR (Expensive).

To view our recent recommendation on NEXTDC Click Here

To view our recent recommendation on Alacer Gold  Click Here

TheS&P 500 was up2.89points or 0.15%on Friday.  U.S. stocks rose slightly on Friday, but the S&P 500 posted its biggest weekly percentage decline since April as investors showed tepid enthusiasm after their first glimpses of earnings. Some of the stocks that tumbled were Netflix (-6.9%), JP Morgan Chase (-2.2%) and Wells Fargo (-2.9%). Alcoa (+6.6%) rose amid the start of the corporate earnings season.

Anxiety among investors was further fuelled by weak industrial production figures out of Italy and France, which helped reinforce the perception of a faltering Eurozone recovery. The FTSE Eurofirst 300 index rallied 0.2% on Friday after a 1% drop on Thursday although it suffered a fall of 3% over the week. Gold’s haven status helped it extend Thursday rise by a further $2 on Friday to $1,337 an ounce, the highest since March. For the week it was up $17.
  

S&P 500 Daily Chart (Source – Thomson Reuters)
 
S&P ASX 200was up by 22.4points or 0.41%on Friday and closed at 5486.8 points. Vocus Communications has renewed its contract with its largest IP Transit Customer Vodafone New Zealand Limited. Spark Infrastructure goes ex-dividend on 28/08/2014 with a payment date of 12/09/2014. Downer EDI’s joint venture with Bombardier Transportation has won a $40 million contract by Western Australia’s Public Transport Authority.

Leading equipment finance provider Silver Chef expects to report net profit after tax for FY14 at the upper end of guidance  ( guidance range of $12.3 million to $12.7 million). Santos has advised that oil production has commenced from Dua oil project, offshore Vietnam. Strike energy has entered into a sale and purchase agreement with PVOG to sell 1,617 net acres in Lavaca County Texas. Qantas Airways and Evolution Mining were among the top performers on the ASX 200.


QAN Daily Chart (Source – Thomson Reuters)

The top gainers on ASX 200 were:- 



Stock of the Day – CSR (CSR)

At CSR’s AGM this month, no change was made to the outlook statement provided at FY14 result in May 2014 other than to increase CSR’s aluminium hedge position. Management has made no change to its guidance for FY14 building products for an improvement year on year due to increased activity and expansion into new markets. Viridian is still expected to exit the fiscal year with a break even run rate.


CSR Segment Revenue  (Source – Company Reports)

CSR’s result again highlighted an impressive internal performance from MD Sindel and team, with only limited assistance from end markets. Going forward, improving housing activity should provide a boost for volumes and earnings. Total shareholder return was 75% compared to 13% for the ASX 200 and 28% for the building product competitors. Over a two year period total share return figures were 115% for CSR and 36% for the ASX 200.
 
 
CSR Manufacturing + Distribution Network (Source – Company Reports)

 
NPAT increased 143% in FY14 with the primary driver being the positive performance of building products division (74% of reported group earnings), with revenue and EBIT growth of 6% and 20% respectively. Importantly management’s view is that the domestic housing sector remains at an early stage of broad based recovery, reflected in revenue for the division being up 6% in 2H14 ( including up 16% in 4Q14 vs the previous corresponding period).


CSR Daily Chart (Source – Thomson Reuters)

Across the smaller divisions Aluminium delivered a 3% EBIT increase via pricing increases realized and property delivered EBIT of $17.3m compared to no contribution in the previous corresponding period with management reiterating previous targets for a $15m -  $20m pa EBIT contribution going forward. We believe 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.