Month: July 2022
KGN +50.16%: shares in eCommerce business Kogan.com surged to 3-month highs today on the back of better-than-expected performance in the business. Sales for FY22 are expected to come in marginally above the prior year, beating out expectations of a fall from the COVID-supported growth of FY21.
SBM +3.33%: The gold producer was out with 4th quarter production numbers, and although they were largely pre-released there were still positives to take out of the update. Production guidance for the full year was met with 281koz of gold produced, as was cost guidance across all assets despite market fears of blowouts due to energy or labour which has weighed on the sector in recent months.
MP1 +23.03%: the network connectivity business was out with their 4th quarter update today with the company’s performance bouncing back after a slow start to the year. Revenue in the final 3 months was up 10% on the third quarter, adding 533 new ports and posting a positive EBITDA in the quarter for the first time.
The bank in the spotlight is clearly ANZ which recommences trading on Thursday and while we’re confident it will have no issues raising the $3.5bn under $19 the big question is where will the stock re-open, anything under $20 looks attractive and especially sub $19.50. MM likes this strategic move by ANZ and the price paid for SUN’s banking division looks fair to us, a 1.3x multiple to book value is pretty much in line with ANZ’s 1.2x.
PPS +10.57%: the independent investment platform provided an impressive 4th quarter update today despite a small fall in the 3 months. Total Funds Under Administration (FUA) at the end of the year was $40.5b, up 10% over the year despite most asset classes falling in the period. FUA fell 4% in the quarter as inflows of $300m were more than offset by a negative investment performance of $1.5b.
BGA was thumped -8.5% yesterday after delivering a profit warning caused by rising Victorian milk prices – the downgrade equated to ~8.6% basically exactly what the stock fell. There’s plenty of conjecture in the press overnight around how this news may have been leaked earlier allowing 3 brokers to downgrade the stock on June 20th however from our perspective all we care about is whether BGA is now presenting good value as it plunges towards $3.
Elon Musk recently announced his intention to walk away from his $US44bn takeover bid for Twitter (TWTR US), the April bid of $US54.20 now looks extremely rich in today’s value contraction environment – the NYFANG Index has tumbled well over 20% since his bid. Clearly Musk’s timing was awful and the world’s richest man now has a legal battle on his hands after throwing in some fairly lightweight reasons to justify the bids withdrawal, on paper this might be one step too far for this often eccentric billionaire who we believe is still very much on the proverbial TWTR hook.
EML -24.61%: a difficult day for the pre-paid card company after their CEO resigned. There was little explanation given for Tom Cregan’s abrupt departure other than the decision being made by mutual agreement. The role has been filled with EML board member Emma Shand taking on the MD & CEO role.
ZIP -5.22%: UBS cut their price target for the BNPL stock in half yesterday which put pressure on the stock today. The analyst talked to higher bad debts and the strategies put in place to limit the issue potentially doing the opposite. While bad debts in the retail arms of banks are decreasing, BNPL has been experiencing the opposite.
EML +10.51%: a strong day for the payment card company, initially catching a bid with the broader tech sector, but spurred on with a strong contract win. Tech was well bid today as investors added duration to portfolios with bond yields falling. Mid-morning, EML announced it had secured a deal with Spain’s postal service to supply 500k preloaded cards, each with €500, totaling around $320m worth of deposits.
