The week that was… your weekly market wrap (27-31 August)
Published 27-AUG-2018 15:50 P.M.
|
3 minute read
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
The corporate earnings season finish line is just around the corner. Following announcements last week, share prices of some Australian stocks are ‘worse for wear’, however, a number of these appear to have been oversold writes Dale Gillham.
Flight Centre Travel Group Ltd (FLT) shares dropped by around 13 per cent from Wednesday’s close, as profit reportedly fell short of expectations and news of over 200 employee complaints. This indicates it’s time to take some profits on this stock. Fortescue Metals Group (FMG) fell by around 3.5 per cent this week after falling short of earnings guidance and disappointing investors with a cut to the dividend. On a positive note, FMG announced it will blend with higher quality ore to boost sales.
It has been rough for the Materials sector, which has fallen by around 7 per cent (878 points) to approximately 11,510 points since 1 August. BHP Billiton Ltd (BHP) reported an underlying profit of US$8.9 billion, up 33 per cent, however, the write down of US shale assets valued at US$5.2 billion resulted in a net profit of US$3.7 billion. The good news for shareholders was the record final dividend of 63 US cents per share. With BHP down another 1 per cent, now’s the time to consider selling some holdings to lock in profit. Having impressed the market, Afterpay Touch Group Ltd (APT) rose an astonishing 16 per cent to over $20 per share. News of a UK expansion and successful capital raising campaign also supported the rise.
Other major companies that reported this past week include; Woolworths Group (WOW) which dropped swiftly on Monday and is currently down 2.7 per cent for the week. Amcor Ltd (AMC) fell marginally and Scentre group (SCG) is 4 per cent lower.
The past performance of this product is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.
What do we expect in the market?
Finally, this week, the Australian market began a much needed two or three week retreat. The All Ordinaries Index (XAO) traded back below 6,400 points on Tuesday, driven by a response to reporting season results and banks, as the Royal Commission turns its attention to superannuation.
Support for the market came from the Telecommunications Sector (XTJ), with a rise of around 9 per cent this week. TPG Telecom Ltd (TPM) shares rocketed up 24.6 per cent on Tuesday, following news of merger talks with Vodafone, which is good news for our market and both companies.
The past performance of this product is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.
This article is General Information and contains only some information about some elements of one or more financial products. It may contain; (1) broker projections and price targets that are only estimates and may not be met, (2) historical data in terms of earnings performance and/or share trading patterns that should not be used as the basis for an investment as they may or may not be replicated. Those considering engaging with any financial product mentioned in this article should always seek independent financial advice from a licensed financial advisor before making any financial decisions.
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.