In today’s daily we have covered stock research on Bega Cheese. To view 5 Mining Stocks To Buy and Top 40 ASX Dividends, please click on the link.

S&P 500 was up by 12.37 points or 0.68% to 1842.98 on Tuesday. S&P 500 rose a second day after stocks posted their worst week since 2012 as earnings from coca cola and Johnson & Johnson overwhelmed concerns that the tensions in Ukraine are worsening. The deteriorating situation in Ukraine, concerns about China’s economic outlook and earnings releases made for a volatile session in the markets.

Coca sola climbed 3.7% after first quarter earnings met estimates. Johnson & Johnson rose 2.1% after reporting better than expected first quarter earnings and raising its full year outlook. Economic data showed that cost of living in US rose more than projected in March as food and rents became more expensive.
  

S&P 500 Daily Chart   (Source – Thomson Reuters)
 
S&P ASX 200was up by 29.30 points or 0.55% on Tuesday and closed at 5388.20 points. Australian shares rose 0.55% on Tuesday supported by gains in banking stocks as investors had some relief from a rebound on Wall Street overnight. The banking sector underpinned a higher move in the ASX 200 with Westpac (WBC) adding 0.6% andCommonwealth Bank (CBA) adding 0.3%.

Australia's central bank said in the minutes of its last policy meeting that economic developments in the past month had done nothing to sway its resolve to keep interest rates steady for a while, noting there had been further signs that low borrowing costs were supporting growth. Among resources stocks BHP gained 0.9% while OZ Minerals jumped 3percent. OZ minerals posted solid first quarter copper production at 18,000 tonnes.


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

The top gainers on ASX 200 were:-
 

Code	Company	Price	Change	%Change
MFG	Magellan Financial	$12.08	$0.70	6.15%
PNA	PanAust Limited	$1.675	$0.095	6.01%
PDN	Paladin Energy	$0.465	$0.02	4.49%
BRG	Breville	$8.95	$0.33	3.83%
IGO	Independence Group	$4.13	$0.15	3.77%

 
 
Stock of the Day – Bega Cheese (BGA)

Bega Cheese is engaged in the processing, manufacturing and distribution of dairy and associated products to both Australian and International markets. BGA operates five processing facilities across NSW and VIC with the capacity to process 250Kt of product across there operating divisions while also holding a strategic 25% investment in CCFA, a fresh mil processor in Canberra.

BGA is unique exposure in the dairy segment, with high level of contracted volumes underpinning a more consistent returns profile than is typically associated with an agricultural investment. In addition BGA holds a leading position in the domestic cheese market and strong exposure to growing infant formulae demand in Asia.


Source - Bega Cheese

Over the last six months BGA has been the beneficiary of favorable dairy commodity pricing environment and a consolidating sector has seen BGA emerge as one of the last corporate targets. During the heat of the $500 million takeover battle for Warrnambool Cheese & Butter (WCB) last year, Fonterra, the world’s largest dairy exporter, forked out about $50 million to take a 10 per cent stake in Bega Cheese, fuelling speculation of an imminent takeover.


 BGA Daily Chart  (Source - Thomson Reuters)
 
The benefit of stronger milk commodity prices and a flexible manufacturing model has seen BGA counter an 8% decline in milk intake to deliver 18% 1H14 NPAT growth to $18.7m. Net debt exited the period at $106.8m, though we would expect this to reduce with the receipt of the sales proceed from the WARRNAMBOOL CHEESE & BUTTER FACTORY (WCB) stake (80m).We believe the stock is overvalued at its current price and would review the stock at a later date.

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