Morning Report Thursday 12 February 2015
My thoughts on 5 company reports that matter from yesterday
We are now in the middle of reporting season for the ASX 200 when we can assess how well both companies and sectors are travelling. Yesterday we had an unusual day with CSL the serial outperformer, reporting disappointing numbers, while fast food company, Domino’s, showed all other companies a clean pair of heels. While I am typing Telstra (TLS) has just reported its half-year earnings. The profit is as expected, but a 15c fully franked dividend may disappoint some.
1. Commonwealth Bank (CBA) $91.86 – Pays $1.98 fully franked on 17th Feb – Reported exactly in line with market expectations and unsurprisingly fell 0.8% after recent strong advance. I remain a buyer of any decent pullbacks while the market expects interest rates to fall – see charts 1.2. CSL Ltd (CSL) $82.95 – Pays $0.7439 unfranked on 16th March – The stock fell 7.8% after a disappointing result. A great company that has been priced for perfection so a decent pullback is possible. Technically I could buy around $82 with stops under $80 however, long term I can still see a pullback towards the mid $70 region hence the best strategy is to buy 1/3 around $82 and add into weakness. – see charts 2.3. Domino’s Pizza (DMP) $33 – Pays $0.246 fully franked on 23rd Feb – Rallied 21% after reporting! Simply a sensational story, technically I can buy with stops under $29.4. Oz Minerals (OZL) – no div. – Fell 7.4% after reporting yesterday. A Poor stock in a bad sector, hence I have no interest.5. Suncorp (SUN) $14 – Pays $0.38 fully franked on 18th Feb – Fell 2.9% yesterday after issued poor guidance on future earnings. A concern for me as I purchased the stock on Tuesday -See chart 5.
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