Wesfarmers Limited (ASX: WES)

WES Details

Sale of Curragh coal mine: The Group announced the completion of the sale of its Curragh coal mine in Queensland to Coronado Coal Group.  The transaction resulted in $110 million of post-tax profit and will be included in the Company’s 2018 full-year results. The Group agreed to sell Curragh to Coronado Coal Group for a consideration of $700 million under an agreement which also included a value share mechanism that was linked to future metallurgical coal prices. Under the value share mechanism, Wesfarmers will receive 25 per cent of the Curragh’s export coal revenue that will be generated above a realised metallurgical coal price of $US145 per tonne. The Company recently announced that the allocation price for shares which will be issued through the Dividend Investment Plan for the interim dividend will be $41.6950 and will be paid in respect of the period ending on 31 December 17. Shares are expected to be issued to the participants in the Dividend Investment Plan on 5 April 2018. On the other hand, the group’s Coles Supermarket business is losing market share to competitor Woolworths. Further, the group is reported to hire Lazard with regards to selling its Homebase business. The stock seems to be “Expensive” at the current market price $41.45
 

Trend of Shareholders Return (Source: Company Reports)
 

Dicker Data Limited (ASX: DDR)

DDR Details

Consistent Growth: Dicker Data is the largest Australian owned ICT distributor in Australia and in New Zealand. Its success is built on its ability to adapt and change quickly. The Group has continued its recent pattern of growth in 2017 by maintaining revenue growth across all its business sectors and geographies.Significant addition of new vendors during the year accounted for an incremental revenue of $86 million and overall revenue increased by 10.2 per cent which was just ahead of its guidance. Its key objective for 2018 is to continue to diversify the vendor concentration. In FY 18, the Company intends to continue streamlining its dividend payment policy by paying equal quarterly dividend instalments of 4.4 cps per quarter. It will retain its Dividend Reinvestment Policy in FY18 and this will bring the proposed dividend to 18.0 cps for FY 18 and which is an increment of 9.8 per cent as compared to FY17. The share price climbed up by 13.13 per cent in the past six months and we recommend to “Hold” the stock at the current market price of $2.83
 

Financial Performance (Source: Company Reports)

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