Viewpoint: Bullish
National Bank (NAB) +1.07%: 1Q21 trading update today so not a lot of information in it, however what we did get was decent. For the quarter, cash profit was $1.65bn which was ahead of market expectations and that was driven by a lower credit impairment charge.
Rhipe (RHP) -2.5%: first half results today were broadly in line with our expectations though the market was pretty bullish leading into it, or at least our analyst was! Revenue was up 15% on last year with operating profit up 34% highlighting the operational leverage in the business.
ARB, the initials of founder Anthony (Tony) Ronald Brown, are Australia’s biggest manufacturer and distributor for hard-working 4×4 vehicle accessories. The business was born from Tony’s outback expeditions when he learned first-hand how Australia’s rugged landscape could essentially ruin many 4×4 parts and accessories. Following his adventures, he set about developing his own quality, practical and reliable accessories and solutions from the family garage. His initiative was instantly well-received by the industry, which was hungry to fill this gap and sustain the post-vehicle purchase customer experience – and sales opportunities. Today, ARB enjoys a global presence with offices across the US, Europe and the Middle East and an exporting network connecting more than 100 countries.
TLS recently delivered a good update with pretty much everything in-line with expectations including the 8cps dividend for the half, with the companies free cash flow (FCF) expectations increased from $2.8bn-$3.3bn to $3.3bn-$3.7bn which all but ensures the dividend of 16cps pa is very sustainable with some potential upside in that number, something that is not being factored in by the market – 4.5% fully franked is extremely compelling in today’s market.
Rail freight business AZJ rallied almost 4% yesterday after delivering a solid first half result with EBIT a slight beat of 3% at $454m being the focal point.
BEN delivered an excellent result which saw the bank catapult over 11% higher, a huge move for the sector.
US stocks were closed overnight for Presidents Day but that didn’t stop the futures squeezing ~0.5% higher to yet again make fresh all-time highs.
“Buy now play later” (BNPL) high flyer Zip Co has now more than doubled in less than 5-weeks, its 4.6% short position must be getting extremely uncomfortable.
Aurizon Holdings (AZJ) +3.9%: traded higher on their first half result today. EBIT a slight beat of 3% at $454m the main number in question.
Bendigo and Adelaide Bank Limited offers a variety of banking and other financial services, including first mortgage housing finance, retail and business banking, commercial finance, funds management, treasury and foreign exchange services, superannuation and trustee services. Bendigo also offers internet banking.
