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SP AusNet (SPN) will go ex dividend on 24/11/2009. The current dividend payment is 4 cents and it is 32% franked. The record date is 30/11/2009 and the dividend will be paid on 22/12/2009. Based on the full year payment the dividend yield is 11.7%.
*Current Yield: 4.7% Franking: 32% DRP Discount: 2.5%
*Yield has been calculated on the closing price on the 24/11/2009. Current yield is based on the current dividend payment only.
Presented by Michael Hevern
MDSFinancial
Click here to watch the presentation.
or
Click here to download the mp3 audio recording (950Kb).
General Advice Only
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In this morning s wrap
DOW: down 0.1%
Dollar Index: Hovers Around Support
US$ Down;
A$ lower 91.88
FTSE: down 0.7%
BoE: Hold Rates 2yrs; Resource & Financial Stocks Weigh;
DAX down 0.6% & CAC down 0.8%
CHINA: down 3.5%
Banks Plan to Address Capital Adequacy Issues;
Hang Seng down 1.5%;
Oil: down 1.9% ($76)
Gold: up 1.6% ($1168) New Highs
Commodities Lower;
Dollar Lower
SPI Futures flat
Yet to Crack Oct. Highs
ASX News
Banks S&P says ALL banks have capital issues
NUF Sinochem deadline 3 Dec 09
TLS abandons $500m 10yr bond issue weak demand
Coal stocks in focus amid carbon credit debate
Possible takeover targets (source AFR):
CEU; BXB; CEY; AOE;
BEC; FGL; AMP; RIC;
HSP; OZL; WOR
Materials, Banks & Energy stocks to weigh
ASX to open lower
US & UK give back some gain
The US markets finished slightly lower. The Dow closed down 17 points or 0.16% at 10,433, the S&P500 was unchanged at 1105 and the Nasdaq was down 7 points or 0.3% at 2169.
Toll Group (TOLL), the Asian region’s leading provider of integrated logistics services, today announced the conclusion of negotiations for the supply of relocation services to the Australian Department of Defence.
“We are pleased to announce that Toll Transitions, the Toll Group’s specialist relocations business, has been notified they have successfully tendered for the contract with the Department of Defence for the provision of both Removal Services (RS) and Relocation Administration Services (RAS),” said Toll Group Managing Director, Paul Little. “This Defence contract is comprised of an initial five year period, followed by up to 4 one year extensions, which are at the discretion of Defence. The initial five year period is expected to generate revenues of more than $1 billion, and if the extensions are granted total revenue of around $2 billion would be expected.” Mr Little said.
Newmont Mining Corporation (NEM) today announced that its subsidiary, Newmont Indonesia Limited, together with Nusa Tenggara Mining Corporation (NTMC) (an affiliate of Sumitomo Corporation), have agreed to sign a sale and purchase agreement for an additional 14% of PT Newmont Nusa Tenggara (“PTNNT”) (7% for the 2008 divestiture and 7% for the 2009 divestiture) to PT Multi Daerah Bersaing (“PTMDB”), a consortium comprised of regional and local governments near the Batu Hijau mine, and PT Multicapital, a private company. Proceeds will total approximately $494 million. The 2008 share transfer will be completed upon approval from the Government of Indonesia. The 2009 share transfer is expected to follow shortly thereafter. A PTNNT shareholder meeting will be held following the closing of the 2008 shares to approve the transfer of the 2009 shares.
“We are pleased to have reached an agreement in regards to the sale of an additional 14% of PTNNT as required under our Contract of Work with the Government of Indonesia,” said Alan Blank, Executive Vice President, Legal and External Affairs. “With our new partners, we remain committed to ensuring the world-class Batu Hijau copper and gold mine’s long-term success, while maintaining the same industry leading standards for employee safety, responsible environmental management and sustainable social investments for our host communities.” In conjunction with the sale, Newmont and NTMC also signed a Mine Operating Agreement with PTMDB, which will become effective upon the closing of the 2009 share sale. The agreement will adopt all Newmont standards of mine operations.
Probiomics Limited (PCC) is pleased to advise that it has signed a major agreement with Chr. Hansen A/S of Horsholm, Denmark to manufacture and market its proprietary probiotic strain, Lactobacillus fermentum PCC® globally in dietary supplements, over the counter drugs, sports nutrition, slimming products, clinical nutrition, beverages, and dairy products. Chr Hansen is a global leader in the development of natural ingredient solutions for food, pharmaceutical, nutritional and agricultural industries. It has 2,150 employees globally with presence in 30 countries and has distributors and agents around the world.
Probiomics Chairman Patrick Ford stated “Clearly this is a ground breaking deal for our Company. It means that our probiotic strain Lactobacillus fermentum PCC® will now be available in markets worldwide (including Australia). Without a major partner with global distribution like Chr. Hansen, this reach would not have been possible.” Mr Ford added “We are thrilled with this deal, and we believe that Probiomics will now be the beneficiary of substantial and increasing cash flows as a result”. The exclusive global distribution agreement is for a period of 10 years. Speaking from Horsholm, Sune Schmolker, a Director at Chr.Hansen stated that “Signing the agreement is a result of more than 2 years of negotiations between Chr. Hansen and Probiomics and is the beginning of a fantastic relationship. We cannot wait to introduce the PCC® strain to our customers world-wide.”
Probiomics has proprietary ownership of a unique probiotic strain – PCC® which has been clinically proved to have superior qualities – particularly in promoting systemic immune response. Probiomics’ commercial objective is to earn royalties from licensing PCC® to distribution companies selling products in global markets. Chr. Hansen is a global biotechnology company that provides natural ingredients to the food, dairy, dietary supplement, pharmaceutical, and agricultural industries. Chr. Hansen is a leading supplier of food cultures, probiotics, enzymes, colors, and functional systems. Chr. Hansen offers superior documentation and innovation within probiotics for the food, agricultural, dietary supplement, infant formula and pharmaceutical industries. It has specialist staff who are able to provide knowledge, inspiration, support, and customized solutions to customers to create successful probiotic product portfolios.
Harvey Norman is looking at a 40% increase in profit for the December half, and after Gerry Harvey’s glowing forecast on the weekend, the HVN share price leapt up 5.1% yesterday.
Gerry Harvey’s expectations of sales for the year being “an absolute record” sent the share price upwards yesterday, and the company needed to back up the hyperbole with an announcement to the ASX after market close last night.
Sales for the period 1 July 2009 to 22 November totalled $1.93 billion, an increase of 7.7% from the previous corresponding period. Unaudited preliminary accounts indicate profit before tax and minority interests should exceed those of last year by 40%.
Sales are up in flat-panel tvs and notebook computers, and rising consumer confidence is fuelling a happy Christmas for Harvey Norman.
Harvey Norman
ASX Code: HVN
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Presented by Michael Hevern
MDSFinancial
Click here to watch the presentation.
or
Click here to download the mp3 audio recording (1298Kb).
Transcription Below:
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Good Morning and Welcome to Cube Wrap for Monday, the 24th of November, I’m Michael Hevern for Cube Financial.
The information provided within this presentation is general advice only and you should consult the services of a financial professional in order to ascertain whether the information is applicable to your investment strategies and risk profile. Again, it is general advice only.
Well the Dow had a late session rally on Friday closing up 2.5% though it was still down 5% for the week.The Fed came out and said that the US economy is in for growth and the week is coming close and that was ignored in the late session as we saw initial covering. Yet the options expiry on Friday as well, so that added to the volatility.
We have Obama speaking on Monday night to the American people, so that will be keenly watched by the market. We see that Obama has picked neither for the treasury post and that was announced towards the end of the market session, so that was also given some credit as to the support in the market.
We saw Citigroup for another 94 cents to 20%, it has taken its losses for the week to 60% and 72% for the month of November as it review its options going forward. We also saw the autos to weigh for the week that they did have a recent session on Friday with General Motors up 6.3% finishing up 1.7% for the week, but Ford lost 21% for the week.
The Index Majors were all down to meet 4 weeks lows there with the DOW down 5.3% for the week. S&P 500 down 8.4% for the week. We see that they still have not broken that down trending line yet and the S&P 500 is still below that previous support level. Even though we did have a big rally on Friday the Bulls are still not in control there. We see that NASDAQ was also down still following that downtrend channel and still unable to break above that stage. We need to close above that plus 1500 level in order to break that level at the downtrend channel. We are seeing that Apple, Microsoft, and Cisco were all up. Apple was up 2.5%, Microsoft up 12%, and Cisco up 5% for the session.
We saw a grade across the board with the other ADRs as well with the AIG up 11%. Alcoa up 23%, Alumina was up 26%, BHP and RIO up 18% and 15% respectively.
We also saw James Hardie up 8.5% and Newscorp was 8% and the banks for ADRs were up as well with ANZ up 20% and NAB up 10% for the session.
We saw the gold stocks index up 28% to close the week and the oil stocks index was also up 11% on the final day of the week. We see that Newmont was up 25% on the session, so that should bode well for the gold stocks in out market. In the UK, we saw that market finished up slightly up 1% still below its mid levels there and still testing the lows of last October. We see that the oil stocks and miners did improve and we also saw the banks recover.
We saw energy stocks up with BP and BG Group up between 2% and 7% on the session and also the heavy weight miners also gained with Anglo, Xstrata, BHP, and Anglo-America all up between 9% and 15% on the session.
Banks recovered with Royal Bank of Scotland up 4% and Barclays up 5%. Share holders confirmed capital raising plans next week. Barclays and we saw the defensive pullback with Smith and Kline down 4% on the session.
Elsewhere in Europe, we saw the CAC drop 3.3% and the DAX down 3.1% on the session. In the Asian markets, we saw that NIKKEI was up over 2%. We can see there it still has been broken above the downtrend line at this stage but it is bouncing off the lower end and there is a close above the 8400 level. The Yen is still stronger and they would low volumes ahead of the 3 days working for the Japanese market Market. The autos continued to suffer as Toyota and Honda were down 2% and 2.5% respectively. Also the exporters weigh on a stronger Yen which slowed down 1% and Cannon down 2.3% on the session.
Elsewhere in Asia, we saw the Hong Kong down 2.9% and the Chinese shares were down 0.7% on the session. In the commodities, we see that oil closed below 50 dollars and back of the lower demand. It did break its 5 day losing streak though and to finish higher for the session. We see that there was also an attack on the Turkish Pipeline.
We saw gold spike up to over 800 dollars at one stage, but finished around the 792 level up around about 6% on the session and was to do with the flight to safety, but also there was a rollover of contracts there so there might be volatility due to that.
In our market, we see the SPI here today as we can see that actually give you a big of a heads up there was broken and closed above the downtrend channel that it has experienced in the last 14 days and during that time it slid 26%, so we are overdue for a bit of respite there.
In our market, we see that apparently there is going to be a hook up for the regulators to talk about what the impact in the short selling and how it has added to the volatility in the past week with the short selling bans coming off. Stocks is suffering an out market included OZ minerals, David Jones, Newscorp and among others and BHP has vowed to cut production in Brazil, that is a factory over there and they also owned up to the fact that their shipments are likely to fall around that 28% in the next two months of the year.
Gold production is down for the year, the lowest level it has been for 19 years. That is despite the fact that for the third quarter we have record gold prices Australian dollar equivalents with the price of gold going from 965 dollars to 1200 dollars down in Australian dollars, so miners haven’t been able to take advantage of that with their inability to ramp up production and access price market on Friday saying that they are looking to double their book value in the next few years to 2012 on the back of growth in the Asian business.
The stocks was up 40% on the back of that I think it’s probably an over reaction there but it was a significant move just on Friday. AGK credit ratings were upgraded and that saw a good move for that stock and it has held up very well in the weight of the market meltdown. Fortescue was up 50% which increased their exports or going to increase their exports to China going forward and they have a couple of new contracts there.
Gold stocks are likely to jump today on the back of the spiking in the gold price and also there is buying the gold stocks on Friday afternoon as well. Our market is likely to open higher and there will be some bargain hunting. Banks went through a big turn around on Friday and managed to follow through with that as well.
Should you have any questions about the information provided within this presentation, please call the equities and options desk or the CFD advising desk on the numbers provided, and as always trade carefully.
The US markets finished higher after a positive existing homes sales report and supported by further strength in the commodity markets. The Dow closed up 132 points or 1.3% at 10,450, the S&P500 was up 14 points or 1.3% at 1106 and the Nasdaq was up 30 points or 1.4% at 2176.
Golden Rim Resources (GMR) announced on the 23/11/2009 that they would be conducting a Share Purchase Plan to raise additional capital. The record date was the 18/11/2009 on which shareholders must own the share to participate in the SPP. The closing date is 9/12/2009. Shares will be issued soon after. A maximum of $15,000 can be purchased by each shareholder at $0.13.
Discount : 10.3% Liquidity : Ok Profitability : Ok Stability : Poor
* Note: Discount is based on the closing price on the 23 November 2009.
