Cimic Group Ltd
.png)
CIM Details
-
Accounting numbers and query from ASX: Cimic Group Ltd (ASX: CIM) stock fell 16.5% on July 07, 2016 as the company received a query from ASX related to the change in its securities price and increase in the volume of securities traded. Moreover, there is a news that Morgan Stanley analyst reportedly questioned about accounting profit numbers. As per Morgan Stanley analyst the firm’s reported profits could exceed cash profits by up to 30 per cent. CIMIC seems to have generated no underlying cash flow despite reporting net profits after tax of $130 million for the March 2016 quarter.
-
Recommendation: We give an “Expensive” recommendation on the stock at the current price of –
AGL Energy Ltd
.png)
AGL Details
-
FY 17 earnings pressure: AGL Energy Ltd (ASX: AGL) stock fell 2.1% on July 07, 2016 after the company gave an update on FY17 gas portfolio margins. AGL expects the total pre-tax contribution to margin from its Energy Markets gas portfolio in FY17 to be lower than FY16 by at least $100 million. This is due to the unusually high prices prevalent in the spot market arising from strong East Coast demand which would be a negative impact on pre-tax wholesale gas margin in the first quarter of FY17 of about $35 million. Moreover, in line with AGL’s market release of May 06, 2016, the expectation that Queensland wholesale gas sales margin will remain attractive, but be about $1 per gigajoule lower than FY16 (on firm sales of 60 petajoules, unchanged from FY16), equating to a pre-tax impact of around $60 million lower margin in FY17.
-
Recommendation: Given the above, we believe that the stock is “Expensive” at the current price of –
K2 Asset Management Holdings Ltd
.png)
KAM Details
-
Strong Dividend Player: K2 Asset Management Holdings Ltd (ASX: KAM) stock fell over 5.9% on July 07, 2016 due to the group’s lower than estimated fund performance. KAM stock has already fallen 37.5% in the last six months (as on July 06, 2016) due to the group’s performance impact given the current challenging conditions. On the other hand, we believe that KAM stock is placed at attractive levels and has a strong dividend yield. The stock is trading at lower P/E.
-
Recommendation: We maintain our “Buy” recommendation on the stock at the current price of –
.png)
FUM as at July 01, 2016 (source: Company Reports)
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. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd currently hold positions in: BHP, BKY, KCN, PDN, and RIO. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.