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Kalkine Daily 24/06/2015 + Burson Group + South 32

Jun 28, 2015

| Read Time :10 Mins

In today’s daily we have covered stock research on Burson Group (Expensive) & South32 (BUY).

The S&P 500 was up by 1.35 points or 0.06% to 2124.20 on Tuesday. U.S. stocks ended with slight gains on Tuesday, with the Nasdaq eking out another record close while investors continued to await clarity on whether Greece could reach a deal to prevent defaulting on its loans. Greece needs fresh funds to avoid defaulting on a $1.8 billion debt repayment to the International Monetary Fund on June 30. Equities have been largely driven by Greece lately, with investors concerned that if the country defaults, it may have to leave the euro or the European Union, potentially shaking the region's economic foundations.

AT&T Inc rose 2.5 percent to $35.91 and was one of the biggest percentage gainers on the S&P 500 after at least two brokerages upgraded the stock. Facebook Inc shares rose 3.7 percent to $87.88, a record close. With the day's gains, the social network's market value is now bigger than that of Dow component Wal-Mart Stores Inc..The Dow Jones industrial average rose 24.29 points, or 0.13 percent, to 18,144.07, the S&P 500 gained 1.35 points, or 0.06 percent, to 2,124.2 and the Nasdaq Composite added 6.12 points, or 0.12 percent, to 5,160.10. The NASDAQ ended at a record while the S&P 500 closed 0.3 percent below its own record.

Facebook Daily Chart (Source - Thomson Reuters)

S&P ASX 200 was up by 74.10 points or 1.32% on Tuesday and closed at 5684.30 points. All of the sectors finished the day's trading recording gains. Health and telecommunications were the standouts, gaining 2 per cent and 1.6 per cent respectively, while consumer staples was the weakest adding 0.4 per cent. Flight Centre shares fell 13.6 per cent to $37.51. The banks played their part in boosting the sharemarket. Commonwealth Bank shares rose 2 per cent to $86.76, National Australia Bank added 1.8 per cent to $34.40, ANZ shares were up 1.6 per cent to $33.43 and Westpac gained 1.75 per cent to $33.70.

In the retail sector, Woolworths was down 0.04 per cent to $26.85, while Wesfarmers gained 0.5 per cent to $40.48 .Metcash's woes continued, falling almost 3 per cent to $1.16. IOOF share price rose 2.6 per cent to $9.48, buoyed by several broker notes saying the sell-off presented a buying opportunity in IOOF. Rio Tinto and BHP Billiton saw rises of 1 per cent to $56.34 and $28.61 respectively, but Fortescue dropped 0.9 per cent to $2.18.

Flight Centre Daily Chart (Source - Thomson Reuters)

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Burson Group (Expensive)

The company recently made an acquisition of a leading Australian automotive parts and accessories distribution, Metacash Automotive Holdings (MAH).

Burson distributes automotive parts to mechanic workshops in Australia. MAH is considered complimentary to the overall position of BAP in the supply chain – adding presence in wholesale, retail & service. The acquisition will increase the scale of BAP’s wholesale and distribution business, which is important for the competitive position of the company. MAH’s marketing network increases the addressable market for BAP’s distribution infrastructure and creates new growth opportunities for BAP. Acquisition is complementary to BAP’s current trade focus and BAP’s strategy for its Burson brande store network. The company has a target of 175 branded stores by June 2019. MAH customer facing functions will continue to operate separately. MAH is expected to accelerate BAP’s existing customer and product strategy. Click Here To Read The Full Report

Australia Wide Locations (Source - Company Reports)

South 32 (BUY)

BHP Billiton has demerged South32, which is now a new diversified metals and mining company having a huge high quality assets base. Both the companies want to focus on their core assets and improve operating model, to enhance productivity at reduced costs. BHP Billiton shareholders got the opportunity to capitalize the profit from both the companies as each eligible BHP Billiton shareholder will get a share in South32.

South32 wants to maximize returns from its assets base at lower costs and also implementing a regional operating model. With this move, the company expects to deliver a cost savings which covers its extra costs of $60 million per annum which will be incurred by South32 as a standalone company. South32 has operations in Australia, Southern Africa and Colombia, as well as non-operated joint venture interests at Brazil. Click Here To Read The Full Report

Company Overview (Source - Company Reports)

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

Note - You can also view this daily in the special reports section.

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