Author: Shawn Hickman
BUB -11.27%: weaker China sales weighed on Bubs shares today, just a week after the stock rallied on the potential upside in China sales. Gross revenue in the quarter was down 28% on last year, weighed by a 66% slump in China sales, though international revenue climbed thanks to the emergency supply agreement signed with the US in the middle of 2022.
SBM -21.35%: the small-cap gold miner saw its shares tumble today after a disappointing production update. 2Q production was down ~5% on the previous quarter to 61koz, while costs rose 7% to $2,666/oz.
NWL -9.19%, PPS -1.26%: both stocks released 2Q Funds Under Administration (FUA) updates today and followed the slide seen in peer Hub24 (HUB) after their update earlier in the week. Netwealth saw FUA inflows of $2.1b, with FUA rising 7.4% in the quarter, though inflows were slower than 2Q22.
SUL +7.68%: the retailer traded to a near 11-month high today after announcing preliminary 1H numbers. Sales were up 11% across the board on a like-for-like basis led by strength in Macpac, Supercheap and rebel, though some weakness in their BCF brand weighed.
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.
VUK +10.63%: Rallied strongly overnight in the UK and today in Oz following a strong FY22 result that showed impressive leverage to rising interest rates. Their 2H22 profit before tax (PBT) result of £401m (£789m for FY22) was 7% ahead of consensus.
