It is a fact not often highlighted by investors in energy and mining stocks, but financial market participants tend to treat producers of crude oil and natural gas more favourably than they do mining stocks. Show More
A bullish day overall despite the market only adding +9pts, it was the strong move up from the daily lows (+34pts) that caught the eye - CBA interesting here and its starting to look reasonable from a technical standpoint as it enters a seasonally strong period (as discussed in the... Show More
The market was sold hard early today with the SPI Futures unwinding down around 50pts before buyers really stepped up into the low volume post Easter trade – so although we closed in the red (only just) the market did rally +27points from the daily cash lows with some big... Show More
The chaos of reporting season makes a good case against markets being efficient. It will take weeks, if not months, to fully parse the recent data download of many hundreds of reports, and to also process views gleamed from the ensuing company roadshows. Reporting season can thus generate a long... Show More
Whilst abnormal losses flagged in the first half pulled the statutory profit into the red, Santos’s core Net profit after tax (NPAT) at US$336m was 5% ahead of our forecast of US$323m. It was also above January analyst consensus forecasts, but these were subsequently revised upwards to US$348m leading into... Show More
After years of incredibly easy monetary policy globally we are finally amid a synchronised global economic recovery the likes of which we have not seen in over a decade. Show More
In part one of a two-piece series on financial statement trickery, we are going to look at some measures a company can take to “dress up” their financial results to create an unclear picture of their financial health. Show More
For many investors Paradice Investment Management is synonymous with high-performing small cap funds. What most wouldn’t know is that Paradice is also home to an Australian large cap portfolio that was opened in 2007. The strategy, which was closed shortly after inception due to overwhelming investor interest, has delivered in... Show More
“I don't see any sign of slowdown in the ability to digitize cash. I think the best description an analyst had coming off of our Investor Day was something like, I like Visa because they have a weak competitor called cash” Vasant Prabhu, CFO, Visa Show More
The chronology of events this past 24 hours is rather curious and provides somewhat of a conundrum as to how to play the current machinations. Santos has stated today that on the 14th of August the company received a confidential, non-binding, conditional and indicative proposal to acquire all the shares... Show More
The S&P/ASX All Ordinaries Accumulation Index closed up 1.4% for the week. On Tuesday, minutes from the Reserve Bank of Australia (RBA) gave no indication as to when the central bank would raise the cash rate, despite growing market expectations of tighter policy next calendar year. On Thursday, data from... Show More
There is so much confusion about the stocks in the ASX’s large-caps index, the ASX 50. Some investors see them as ‘blue-chips’ by virtue of their size and longevity, and thus see them as long-term portfolio holds. Others think the ASX 50 is largely useless: a motley, concentrated index of... Show More
Sentiment towards Santos has improved a great deal recently. The company has reduced costs and the price of oil seems to have stabilised for now. The interim update in August even managed to beat expectations. Show More
In the true tradition of denial, we have maintained our position in Santos, and in fact, have added a modest amount over the past 12 months. Whilst it has been a particularly challenging period for both the company and investors, there are growing signs that the ship has been righted... Show More
In this short video we discuss the features of STO’s first half of operations, which saw the group report an underlying profit of US$156 million compared to an underlying loss of $5 million a year earlier and a net loss of US$506 million, which included a previously announced US$689 million... Show More
In this daily reporting season update, we provide first impressions on key takeouts from companies reporting today, including Santos (STO), Scentre Group (SCG), South32 (S32), OZ Minerals (OZL), MYOB Group (MYO) and Flight Centre (FLT) with links through to more detailed reports. Show More
Energy producer, Santos Limited (STO) reported a net profit of US$156 million for the first half of 2017 against a US$5 million loss in 2016. The company has been in a rebuilding phase over the last 18 months and is well on the way to meeting its renewed strategy under... Show More
Local market bounced back after 3 consecutive negative days on the back of solid US non farm payrolls and better commodities. The last time market had 4 consecutive negative days was in early May…and our market has been going sideways since then. Local market and currency got a slight boost... Show More
Whilst we don’t see a return of Santos to a share price above $10 anytime soon, a level seen only a few years ago, we believe long term investors should be thinking of accumulating troubled situations such as this for a turnaround. Show More
After reviewing the stocks that shot the lights out in FY17, this week we turn the tables and look at 5 widely held stocks that dragged the market down, the worst of which has more than halved in price. We ask if the companies currently in the ‘dog-house’ will keep... Show More
