In today’s daily we have covered stock research on
Toll Holdings. To view
Top 25 Dividend Stocks as per their yield
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S&P 500 was up by 8.90 points or 0.48% to 1878.33 on Tuesday. S&P 500 rose on Tuesday, boosted by upbeat earnings from companies including
Merck & Co and a rebound in
Facebook and other high-growth shares.
Yahoo! Inc. and
TripAdvisor Inc. jumped at least 4.6 percent to pace gains in Internet shares. Further deal activity on the healthcare front also lifted the market. Britain's
Reckitt Benckiser Group Plc confirmed talks to buy Merck's consumer health business, the latest asset up for grabs in a wave of recent pharmaceutical deals.
Twitter Inc. climbed 4.6 percent to $42.62 during regular trading. After the market close, the shares lost 8.7 percent after the microblogging service said membership in the first quarter reached 255 million, with user growth slowing to 25 percent from 30 percent in the previous period.
S&P 500 Daily Chart (Source – Thomson Reuters)
S&P ASX 200 was down by 49.5 points or 0.89% on Tuesday and closed at 5486.6 points.
G8 Education which has been the best performing stock in ASX 200 held their annual general meeting in Gold Coast on Tuesday , where almost one in five investors in the stock voted against the remuneration report.
Wesfarmers total retail sales rose 4.4% to $12.7 billion in the three months ending March. Strong sales at
Bunnings and
Coles were offset by soft liquor sales and decline of sales at
Target.
The
Australian dollar is buying around US92.6c is about 13c below its 2013 high, but still a long way off its historical average of US70c.
S&P ASX 200 Daily Chart (Source – Thomson Reuters)
The
top gainers on ASX 200 were:-
Stock of the Day – Toll Holdings (TOL)
Toll holdings is a major supplier of transport (road, rail, air and sea), freight forwarding and third party logistics services, primarily operating in Australian, New Zealand and Asian Market. Toll’s aim is to be the main provider of integrated logistics solutions across diversified markets in the Australasian region. Toll has six operating divisions: Toll Global Express, Toll Global Forwarding, Toll Global Resources, Toll Global Logistics, Toll specialized & Domestic Freight, and Toll Domestic Forwarding.
Toll’s scale, network and market share in the domestic market provides barriers to entry and a solid base for regional expansion. The company’s Asian focused expansion strategy is well considered and should generate significant growth by leveraging existing expertise, resources and balance sheet strength. However Toll’s operations are highly leveraged to domestic and international economic conditions.
Source - Toll
Significant exposure to the domestic retail, fast moving consumer goods, industrial, automotive and resources sectors results in earnings volatility, with weak economic conditions in eastern Australia weighing on earnings. Toll holdings announced a sound first half fiscal 2014 result despite difficult conditions with flat revenue at AUD 4.5 billion, earnings before interest and tax or EBIT up 1% to AUD 259 million and net profit after tax or NPAT up 1% to AUD 176 Million
Toll Daily Chart (Source - Thomson Reuters)
Despite a highly developed domestic network and integrated logistics offering, Toll has not been able to establish meaningful competitive advantages, because of low barriers to entry and it operating in markets which are cyclical and highly fragmented. Toll’s domestic transport operations saw margin deterioration during the half as a result of aggressive competition, weak discretionary retail conditions and a slowdown in mining services activity. We believe the stock is slightly overvalued at its current price and would review the stock at a later date.
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