Month: December 2022
SGR -17.83%: Was hit today following changes to taxation in NSW that seemed to blindside SGR with the company saying that no details have been made available in relation to the potential reforms including as to how the taxes would be levied or applied at this stage.
ORG –7.82%: Hit today following recent developments around government intervention in gas and coal markets. The proposal around price caps etc is creating concern around the $9 per share takeover of ORG that is currently undergoing due diligence.
DOW -20.42%: The contractor came clean this morning about an accounting issue, having incorrectly recognised revenue from a long-term, maintenance contract to the tune of $40m. As a result, they cut FY earnings guidance by $8-10m and had to explain away issues with their internal systems that led to the embarrassing mess.
Crude oil has quickly surrendered its recent gains as recession fears again became front and center of investors’ minds, it’s bizarre how strong economic data is driving recession fears but it, unfortunately, demonstrates that investors have limited confidence that the Fed can balance its fight against inflation without avoiding a painful economic downturn.
FMG has already bounced ~50% from its November low but it’s still only trading on a P/E for 2023 for 10.3x while it’s expected to yield almost 10% over the next 12 months – importantly its payout is forecast to fall over the coming years in line with a declining iron ore price.
