Australasian Equities

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Australasian Equities

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Core

high

Big changes afoot The October rout in global equities has frayed investor nerves, leaving them in no mood to receive anything other than good news. AMP (ASX:AMP) has already been in the dog house with investors from the fallout of the Royal Commission. Its major restructuring announcement last week, combined with the implication the final dividend will be sharply lower and the numbers showing large cash outflows at its wealth management arm, saw investors react harshly, with the shares losing approximately

Qantas (ASX:QAN)

Speculative

medium

Fat Prophets take remaining profits Qantas shares have continued to lose altitude since our sell half recommendation in late August. In fact, the stock has lost almost 20%, with the market pullback not helping, but also as the company issued a mixed trading update last week. Revenue growth was strong in the first quarter, but rising fuel costs appear to be taking their toll. This is something we warned of at our last update, and we expect it to be an

Platinum European Fund

Core

medium

Cloudy Skies in Europe Over the last few years, Europe’s economy has been shedding the austerity and stagnation caused by the GFC. However, the tensions from within (Italy’s economic woes, UK’s Brexit, & Migration issues) and the rising geopolitical storms from without (US-China trade war) are causing growth to slow and temper sentiment. With political tensions continuing to trouble the market and Europe’s growth moderating, we believe it’s best to be more cautious and we adjust our view on Platinum European

Evolution Mining (ASX:EVN)

Speculative

high

1Q19; Off the pace a tad Evolution Mining (ASX:EVN) has just released its September quarter results to 30 September 2018, and in doing so has revealed a soft start to fiscal 2019. The company had provided guidance that 2019 would deliver softer production numbers which has played out in the first quarter for 2019. Despite the softer production outcome, the company did reiterate its 2019 guidance. Higher operating costs were reported for the quarter, while the balance sheet remained in good

James Hardie (ASX:JHX)

Core

high

Strong through the cycle Shares of James Hardie Industries (ASX:JHX) have fallen materially over the past couple of months, along with the US homebuilding sector, as James Hardie generates most of its sales in the US market. Although there are some headwinds buffeting the stock, we continue to believe in the quality of the business and the long-term market opportunity for fibre-cement. James Hardie’s Australian-listed shares have fallen approximately 20% from their 52-week high. Several factors seem to have driven the decline,

Telstra (ASX:TLS)

Core

medium

The Shareholders Strike Back Telstra (ASX:TLS) shares have staged a decent recovery since hitting multi-year lows midway through 2018. Several factors have combined to spur the recovery, including the reporting of fiscal 2018 numbers with key figures that exceeded muted expectations, the telecommunications titan holding the line on its dividend, some optimism regarding the growth opportunity from 5G and the merger of a couple of key players in the sector. Shareholders have also spoken with the recent voting down of the

Sky Network TV (ASX:SKT)

Core

high

Stopping the sky from falling Sky Network Television (NZX, ASX:SKT) has been, in our view, a textbook example of how value can be destroyed when a company is slow to react to challenges to its monopolistic position. Having faced little, if any, competition for the best part of two decades, the largest pay TV provider in New Zealand has been complacent about the risks posed by disruptors such as Netflix and Spark New Zealand’s Lightbox. A failure to invest and ‘keep up

Mainstream (ASX:MAI)

Speculative

high

Aiming for Mainstream We have heralded for some time the long-term attractiveness of the investment sector, with a growing national superannuation pot. This, along with a changing regulatory landscape, which has led to rising compliance costs, is creating opportunities for a number of industry participants. One such company is Mainstream Holdings (ASX:MAI) which occupies a unique slot in the supply chain, offering the entire gamut of Middle-to-Back Office services as the “Back Office for Hire”. Source: Company Website The company has exhibited exceptional

About these archived stock reports

These are archived Fat Prophets equity research stock reports and share analysis. They do not constitute current investment advice, financial product advice, or a recommendation to buy, sell or hold any financial product. They are provided for historical reference only, and reflect the market conditions, company information, forecasts and opinions available at its original publication date. The information may no longer be current or applicable. Past performance is not a reliable indicator of future performance.

This is general information only and does not take into account your objectives, financial situation or needs. Before acting on anything in this report, you should consider its appropriateness to your circumstances and seek advice from a licensed financial adviser.

DISCLAIMER Fat Prophets has made every effort to ensure the reliability of the views and recommendations expressed in the reports published on its websites. Fat Prophets research is based upon information known to us or which was obtained from sources which we believed to be reliable and accurate at time of publication. However, like the markets, we are not perfect. This report is prepared for general information only, and as such, the specific needs, investment objectives or financial situation of any particular user have not been taken into consideration. Individuals should therefore discuss, with their financial planner or advisor, the merits of each recommendation for their own specific circumstances and realise that not all investments will be appropriate for all subscribers. To the extent permitted by law, Fat Prophets and its employees, agents and authorised representatives exclude all liability for any loss or damage (including indirect, special, or consequential loss or damage) arising from the use of, or reliance on, any information within the report whether or not caused by any negligent act or omission. If the law prohibits the exclusion of such liability, Fat Prophets hereby limits its liability, to the extent permitted by law, to the resupply of the said information or the cost of the said resupply.

Funds Management – In addition to the listed fund FPC, Fat Prophets Pty Ltd manages the separately managed accounts, namely Concentrated Australian Shares, Australian Shares Income, Small Midcap, Global Opportunities, Mining & Resources, and Asian Shares. These SMAs are managed under their own mandates by the fund managers, and this is independent to the research reports.

Staff trading – Fat Prophets Pty Ltd, its directors, employees and associates of Fat Prophets may hold interests in many ASX-listed Australian companies which may or may not be mentioned or recommended in the Fat Prophets newsletter. These positions may change at any time, without notice. To manage the conflict between personal dealing and newsletter recommendations the directors, employees, and associates of Fat Prophets Pty Ltd cannot knowingly trade in a stock 48 hours either side of a buy or sell recommendation being made in the Fat Prophets newsletter. Staff trades are pre-approved by an appointed staff trading compliance officer to ensure compliance with the staff trading policy.

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About these archived stock reports

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