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Core

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Still a healthy diagnosis Sonic Healthcare’s interim results were positive with the pathology provider reporting it is on track to meet full year guidance. Revenues increased by a healthy 8%, while EBITDA gained 9% and net profit surged 16%, bolstered by a one-off net tax benefit in the United States. We retain a positive view on the long-term prospects for the company given scope for expansion offshore. 1H18 snapshot Sonic Healthcare (ASX:SHL) reported a statutory profit of approximately $229 million for the interim

TPG Telecom (ASX:TPG)

Speculative

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Another potential reunion In last week’s report we covered off Vocus Group as a traffic light, with the stock having been one of our more satisfying recommendations in recent years, getting exposure around the bottom, and selling out close to what has proved to be a top. We discussed how a significant loss in shareholder value, more appealing investment metrics, along with the prospect of new management, and a lower debt load, gave cause to put the company back on our

Platinum European Fund (PLA001AU)

Core

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Rise of the Populists: A Fragile Union European stocks as represented by the STOXX Europe 600 snapped a losing streak Monday as Angela Merkel party got the support required to form a coalition. That was partially offset by the General Elections in Italy which indicate a hung (divided) parliament with the leading rival parties reeking of strong anti-EU sentiment. Ultimately though, we maintain a positive view for the Eurozone given its strong economic momentum and as such we maintain our BUY recommendation on the Platinum

South32 (ASX:S32)

Speculative

high

1H18; clipped a little but that’s all The positive momentum we have seen in the short-time South32 (ASX:S32) has been reporting its financials to the market diminished a little with the release of its 2018 first half result. Prices played a major role in the better underlying earnings result, but the company was not able to leverage its operations to gain maximum advantage. The balance sheet remains in top shape, while shareholders received a first half boost from a top up

Ardent Leisure (ASX:AAD)

Core

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Still Along for the Ride Ardent Leisure (ASX:AAD) recently released its half-year results, showing that there is still a lot of work to do given the declines on the top and bottom lines compared to last year’s results. However, we are pleased to see that there have been improvements in the Theme Park and US-based Main Event businesses so far in the second-half while the selection of a CEO for the Main event business will give it the needed direction. Recap and

QBE Insurance (ASX:QBE)

Speculative

high

The Decks are Cleared Despite the challenges to QBE Insurance’s (ASX:QBE) 2017 results being well flagged to the market in advance, investors chose to sell the fact, with the shares seeing some weakness immediately after the company released results. This was likely due to the cut in the final dividend. However, we maintain the view that with the shares trading at depressed levels and following a ‘clearing of the decks’ the trading environment for the insurer will likely be more accommodative

Spark New Zealand (SPK:ASX)

Core

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Reaching for the cloud The Australian-listed shares of Spark New Zealand (SPK:NZX, SPK:ASX) have drifted downwards over the past year and the reporting of the company’s interim results hasn’t changed that, with net profit experiencing a slight 3.4% decline from a year earlier, although the dividend was maintained. However, with the transformation plan having further to run, along with solid traction in mobile, digitisation and cloud offerings we remain positive on the investment case, with the dividend supportive. 1H18 highlights – Currency

Vocus Communications (ASX:VOC)

Speculative

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Back to the future As far as our sell recommendations have gone in recent years, Vocus Group has been one of the more satisfying. We gained exposure to the shares not once, but twice as the company swallowed up both Amcom Telecommunications, and M2 Group. We originally entered both on ‘value’ grounds, and latterly became concerned that Vocus was becoming too big for its boots, with a premium multiple to match. With integration risks abounding, and the technical picture also showing

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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