Australasian Equities

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Australasian Equities

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Core

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Under the Microscope Australia’s Big Four banks are under the microscope again this week, with the second round of the Royal Commission underway. This time the focus is on financial planning and it is already generating a lot of press, with likely plenty more to come. This increased scrutiny, along with the raft of new regulations has seen the big banks de-rate over the past year, lagging the broader market. Amid this gloomy sentiment though, Westpac (ASX:WBC) and its peers though

engage:BDR (ASX:EN1)

Speculative

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Getting with the program The digital age has meant that a growing number of industries are subject to increasing disruption. None more so than the media sector where traditional players have had to move with the times to survive. This has also had profound implications for the advertising industry, with many participants having to change their modus operandi, and evolve to maintain profitability and survive. This is highlighted by a graph showing the current drivers of US ad revenue growth. Source: Investor Presentation engage:BDR

Spark New Zealand (ASX:SPK)

Core

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Time to Spark up the Rugby In conjunction with state-owned Television New Zealand, Spark New Zealand (ASX:SPK) yesterday announced that the pair had obtained the rights to broadcast the Rugby World Cup 2019 (RWC2019) to New Zealanders. The deal struck also encompassed other rugby tournaments. It was a win for Spark and will further strengthen Spark’s competitive position and brand in the video streaming space, which is already strong locally with the Lightbox-branded offering. Spark’s Netflix-like offering, Lightbox, had reached 300,000 subscribers at

ETFS Physical Gold ETF (ASX:GOLD)

Speculative

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Spreading the wings The gold price has since our last review of the ETFS Physical Gold ETF (ASX:GOLD) in July, moved positively on notable tailwinds. A compelling story around the appearance of inflation in 2018 and beyond, coupled with an accommodating US Dollar should produce price tailwinds for the precious metal. With the current physical gold market now more supportive of a price rally, the broader factors appear to very much favour a sustained gold price rally. The following chart shows

Australian Agricultural Company (ASX:AAC)

Speculative

high

Realigning the Steaks Australia’s largest beef and cattle producer, Australian Agricultural Company (ASX:AAC), unveiled a negative update last week that points to 2018 ending on a rather sour note, with turnaround efforts taking longer than anticipated. This saw the shares drop away in the days subsequent, before gaining some composure. We however maintain our hold view given that turnarounds take time and we are confident that in the longer run, the company’s shift towards a vertically integrated and higher margin business

Magellan Financial Group (ASX:MFG)

Core

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Holding onto its Values Since our last coverage of the Magellan Financial Group (ASX:MFG) in November (FAT-AUS-847), there have been quite a few announcements from the fund manager, with the most notable being updates on acquisitions as well as interim results. The company has also terminated its sponsorship deal with Cricket Australia following the recent ball tampering scandal which it believes was ‘inconsistent’ with company values. That aside, the company’s share price over a rolling 12-month period have been on quite

AMP (ASX:AMP)

Core

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Winds of Change AMP (ASX:AMP) announced in February that it had seen a strong swing back to profits in 2017, but the shares have been under renewed pressure in recent weeks. This has likely been due to a few factors, including the announced retirement of the CEO around the end of 2018, an increase in market volatility and a reported sell-down of by a major shareholder. Shareholders will be looking for more rapid change at the company, including a push into

IOOF Holdings (ASX:IFL)

Core

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A Growing Opportunity Although financial services company IOOF Holding’s statutory interim net profit fell due to costs related to the ANZ acquisition and a non-cash goodwill impairment, overall there was plenty to like in the results in our view. Underlying profit grew by a double-digit pace, as did net inflows. Funds under Management, Administration and Advice at the end of the period increased almost 10% year-on-year to $120.0 billion, with this trend beneficial for operating leverage. Cost management was impressive and

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.

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