What’s the recent with these three stocks?

Stockland Corporation Ltd

Record number of deposits for its Residential business: Stockland Corporation Ltd (ASX: SGP) reported 2,301 net deposits on residential lots, townhouses and completed homes in the first quarter FY 17, which is up from 1,557 for the corresponding period in FY16. Moreover, SGP is on track to achieve more than 6,000 residential settlements for the FY 17 and sees constructive signs for an elongated property cycle. SGP has also confirmed that it is on track to achieve target growth in Funds from Operations (FFO) per security of 5.0-7.0 per cent across the entire group. Moreover, the group expects a profit skew for second half of 2017, assuming no material change in market conditions. The FY 17 DPS is expected at 25.5 cents and the new target range is 75%-80% of FFO. On the other hand, Graham Bradley AM, announced retirement from the Stockland Board while Tom Pockett would take the role of Chairman after the conclusion of the AGM. The stock is down 13.58% in the last three months (as at November 01, 2016). We recommend a ‘Hold’ at the current price of $ 4.39

 
SGP Daily Chart (Source: Thomson Reuters)

Blackmores Limited

Subdued first quarter of FY 17 performance: Blackmores Limited (ASX: BKL) reported an 8.1% fall in the group sales to $149 million in the first quarter of FY 17, as compared to the previous corresponding period. Further, BKL reported a 46.6% fall in the net profit after tax to $12 million. The reducing excess stock by retailers hurt the group’s Australian sales. Changing buying patterns of Chinese exporters also led to softer sales in Australia. On the other side, the group entered Indonesia in September and reported encouraging early sales as the current range of 17 products are anticipated to grow to 29 core lines in more than 1,200 retail outlets due to an established e-commerce presence by the end of FY 17. Additionally, BKL is expecting a stronger second quarter as compared to the first quarter sales driven by improving sales and profit trajectory. Moreover, BKL expected a positive sales trends signaling a possible easing in overstocking coupled with gaining consumer demand.

 

Quarter Performance (Source: Company Reports)
 
The group was able to capture significant new sales in China. BKL had also reported for FY 16 sales growth of 52% while NPAT was up 115%. However, BKL stock fell 29.74% in the last six months (as of November 01, 2016) due to their lower than estimated performance. We believe that the stock is ‘Expensive’ at the current price of $ 113.48


BKL Daily Chart (Source: Thomson Reuters) 

Australia and New Zealand Banking Group Ltd

Focusing on Institutional Banking in Asia: Australia and New Zealand Banking Group Ltd (ASX: ANZ) is announcing its annual results on November 03, 2016 and will hold its AGM in December 2016. ANZ has recently made an agreement to sell its Retail and Wealth business in Singapore, Hong Kong, China, Taiwan and Indonesia to Singapore’s DBS Bank. In FY 16, the business accounted for about $825 million in revenue and net profit of ~$50 million. Moreover, the sale is expected to increase ANZ’s CET1 capital ratio by approximately 15-20 basis points; and excluding the write-downs in 1H FY17, there would be a minimal impact on ROE and EPS. The move is to create a better balanced bank.

 

Asia Portfolio (Source: Group Reports)
 
On the other hand, ANZ is targeting to leverage higher levels of growth in the Asia by focusing large corporate and institutional clients. ANZ stock has fallen 2.5% in the last five days (as at November 01, 2016). We recommend a ‘Buy’ at the current price of $ 27.18

 
ANZ Daily Chart (Source: Thomson Reuters)

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