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Speculative

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To New Chapters Fiscal 2018 was a solid year for consumer credit player, FlexiGroup (ASX:FXL), which reported marked improvements across key metrics, supported by the prudent retirement of legacy brands (instead of pointlessly holding on) and replacing them with more ‘relevant’ brands. While the shares have yet to perform, we remain encouraged by the company’s outlook under new leadership. What’s New? Our last coverage of the stock was in March (FAT-AUS-864) where we focussed on the company’s interim results which showed that it

Bank of Queensland (ASX:BOQ)

Core

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Staying with Queensland The initial investor response to Bank of Queensland’s FY18 results was positive. Although the results were a mixed bag; the key cash earnings metric was higher than expected and net interest margins expanded. We also like the relative “flexibility” advantage the bank offers. Valuations in the sector are undemanding after a period of negative sentiment. The Royal Commission highlighted many aspects of bad behaviour in the financial industry, although the focus was generally on the larger players. Bank of

ANZ Banking Group (ASX:ANZ)

Core

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Getting serious about customer compensation ANZ (ASX:ANZ) shares dipped 2.6% yesterday after the bank flagged its FY18 cash earnings will be impacted by substantial charges for customer compensation and other significant items. The charges highlight that the aftermath of the Royal Commission will be expensive, but given the correction in ANZ shares, we believe significant “bad news” has already been priced in and the bar for outperformance going forward set relatively low. The Royal Commission has highlighted many instances of bad behaviour

Collins Foods (ASX:CKF)

Core

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Going for a Third Bite It seems that the third time is indeed the charm, with Taco Bell’s latest attempt to launch in Australia having early success. The country’s largest KFC operator, Collins Foods (ASX:CKF), has announced plans to roll-out the Mexican offering across three states over the next three years. With attractive growth prospects for a ‘defensive’ stock, we maintain our BUY rating on Collins. What’s New? Last month (FAT-AUS-890), we covered the company’s Annual General Meeting wherein management provided more colour

Woodside Petroleum (ASX:WPL)

Core

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A solid half all round Woodside Petroleum (ASX:WPL) reported an improvement in its first half underlying profit for 2018. The company announced a surge in sales revenue, as production and oil prices delivered for the half. The balance sheet reaped the benefit of the financial performance for the half, to step further up the quality scale. Shareholders received a boost in the interim dividend. The following table shows a summary of the company’s first half result (in US Dollars): Source: Woodside petroleum

Incitec Pivot (ASX:IPL)

Speculative

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Things are Picking Up Shares of Incitec Pivot (ASX:IPL) have staged a solid recovery from 52-week lows in recent months. The backdrop for end markets is improving in our view, with inflationary pressures likely to continue flowing through to commodity prices. In addition, following the reporting of interim results, Incitec Pivot reported a contract win in West Australia that will mitigate the earlier loss of two other contracts. The company also inked a deal for gas supply to the Gibson Island

IMF Bentham (ASX:IMF)

Speculative

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A Case for Bulls Litigation Financier, IMF Bentham (ASX:IMF) has finished the year in the middle of its 5-year transformation towards a “fund manager” business model where it will manage third party capital in its Special Purpose Vehicle funds. Naturally, the transformation will show some “growing pains” while the legacy business model reflects the historical issues of lumpy returns. Nevertheless, we are pleased with the company’s progress so far and maintain our BUY rating. What’s New? In our previous coverage of the company

Sonic Healthcare (ASX:SHL)

Core

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In Good Health Diagnostics and pathology giant Sonic Healthcare (ASX:SHL) delivered a solid set of 2018 fiscal results, with healthy revenue and profit growth, although management have flagged a more cautious outlook for the current year outlook. Nonetheless, the company provides a blend of defensive and growth characteristics with a strong track record for shareholders. Accordingly, we recommend holding the stock. FY18 review Group revenue for the year increased 8.2% to $5.54 billion, benefitting from a slight foreign exchange rate tailwind. In constant

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.

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