Viewpoint: Bullish
FY21 Result: A decent set of results for Australia’s No 1 gold stocks today with NCM meeting or beating expectations for FY21. NPAT came in at $1.16b vs consensus at $1.04b on slightly higher than expected revenue. They guided to a slight fall in gold production to 1.8-2moz in FY22, though this was already well understood by the market.
FY21 Result: An in line result for NWH on FY21 with EBITDA at $266.7m, right on consensus expectations. Guidance was the standout though with EBIT for FY22 expected to be in the range of $145m-$155m vs market expectations at $147m. The company talked up their large order book and importantly, they sighted improving margins which…
The Volatility / Fear Index (VIX) soared over 20% overnight as stocks fell indicating investors are becoming scarred and want to buy some downside protection e.g. Puts. At this stage were looking for another test of the 30% area and potentially 40% as the herd feels a touch complacent short-term.
Metals recycling business SGM was the markets 2nd worse performing stock yesterday falling -5.8% after digesting the previous days results and encountering a downgrade by Macquarie Group. We see no issue with SGM more just a case of too much too soon after popping to fresh highs earlier in the week i.e. another classic “fade the rally but BUY the dip scenario”.
Healthcare imaging company PME delivered a cracking full-year result yesterday sending the stock soaring over 15% to fresh all-time highs. Everything read well with revenue up almost 20% and NPAT rising over 33% to $30.9m, the company also announced a 8c dividend although with a yields close to that on offer at the bank this stocks clearly…
The ASX200 opened lower yesterday but the “buy the dip” phenomenon that’s been prevalent post the initial coronavirus breakout played out through the morning, early losses turned into gains before the index drifted into 4pm, we ultimately closed down just 0.1% – its hard to argue with the bulls when they cite a mass of liquidity (money) sitting on…
OZL delivered an excellent first half result this week but the stocks struggling to react under the pressure of a falling copper price, they even threw in a nice although small 8c special dividend
1H21 results: 1H21 financial results today for OZL and they were very strong relative to expectations. NPAT of $269 million for the half year was up 237% driven by operational performance, higher copper volumes and stronger prices. That was a big beat ~15% although the consensus is a bit skinny on numbers (typically the case at the 1H result).
FY21 Result: A reasonable FY21 result for EML out yesterday after market. Profit of $32.4m was a strong beat, 19% above consensus while revenue came in marginally ahead at $194m. The profit beat came down to lower costs however 1H 22 will likely offset much of that as they work through remediation relating to the CBI business in Ireland.
We covered the investment platforms FY21 result during the week however we had the chance to talk to the new CEO Anthony Wamsteker yesterday. The result was weaker than expected, the stock fell sharply then recovered – why? The big concern was margins – Praemium revenue margins were reasonably stable and we expect them to hold around…
