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Australasian Equities

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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

medium

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

medium

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

Woodside Petroleum (ASX:WPL)

Core

medium

Take up entitlement Woodside Petroleum (ASX:WPL) announced on 14 February 2018 that it was raising up to A$2.5 billion by way of a pro rata accelerated renounceable entitlement offer to its shareholders. The Retail Information Booklet setting out the details of the entitlement offer was forwarded to eligible shareholders on 22 February 2018. The funds raised under the offer will be used to acquire a further interest in the Scarborough natural gas field in Western Australia. The following figure shows the

Estia Health (ASX:EHE)

Speculative

high

Turning it Around nicely Estia Health (ASX:EHE) shares enjoyed a strong finish on the boards last week after reporting interim results, recouping much of the ground lost since late last year. The aged care provider declared its first interim dividend in two years and a mid-single digit increase in EBITDA. The company looks to be advancing its turnaround nicely under new senior management and should be a beneficiary of industry tailwinds. Background Estia Health (ASX:EHE) joined the portfolio in May 2017, and as

Stockland (ASX:SGP)

Special

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Quality on the Cheap Stockland (ASX:SGP) delivered improvements in several key metrics in its recently reported interim results. The group is a leader in several areas and has a diversified portfolio that is being undervalued at current levels in our view. Accordingly, we rate the stock a buy. Rising bond yields have seen a sell-off in many ‘yield’ plays, including Stockland with the view that a strong income stream is not as enticing as it was. However, demand for high yielding income stocks,

Silver Chef (ASX:SIV)

Core

medium

Getting out of GoGetta Shares in equipment financier Silver Chef (ASX:SIV) were marked down heavily yesterday, and have seen further weakness today, as the company released half year results and alongside this, a major restructuring. As part of a major strategic refocus, the company is exiting its GoGetta business. Silver Chef will be refocussing on its core hospitality business and growth opportunities domestically and abroad. The company has previously highlighted an intention to look at GoGetta (provides financing to the transport and

MNF Group (ASX:MNF)

Speculative

high

A Penny(tel) For Your Thoughts MNF Group (ASX:MNF) reported strong underlying growth in its first half report with all business segments delivering. However, as management announced a relaunch of its Pennytel brand, they downgraded the full-year NPAT (net profit after tax) forecast from $15 million to $12.5 million. Today we weigh in on the results and the outlook going forward. First Half Results 2018 (to 31 December 2017) MNF Group (ASX:MNF) posted solid revenue growth in the first half of FY2018 (1H18), with

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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About these archived stock reports

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