Morning Report Thursday 14 August 2014
Looking at 4 companies who fell yesterday after reporting, any opportunities?
We are in the middle of reporting season, a time when investors discover how well both management and companies have been performing. Four companies caught my attention yesterday due to their poor share price performance; on closer inspection I have a mixed opinion around these stocks. Investors must focus not just on headline numbers and dividends, but also on the rhetoric delivered by the company, this was clearly demonstrated by Computershare (CPU) yesterday.
Below are my opinion on the 4 companies who experienced poor share price performance yesterday after reporting:
Commonwealth Bank (CBA): -0.9% at $80.96 – currently yields 4.95% fully franked –I have heard a number of people say “is this is good as it gets?” after a slight slowdown in growth and a small pick-up in bad debt charges. Overall, the company is going fine, but due to its premium to its peers, I anticipate a significant period of price consolidation.Sophisticated investors should sell calls v holdings.
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