Archive for February, 2010

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  • Thursday, 25th February 2010 Morning Wrap

    Thursday, February 25th, 2010

    Presented by Michael Hevern
    MDSFinancial

    Click here to watch the presentation.

    or

    Click here to download the mp3 audio recording (995Kb).

    General Advice Only
    ***********************************************
    In this morning s wrap

    SP500 up 1.2%
    Fed: Remains accommodative , Rates Low for extended period ; Financials & Tech Up

    Dollar Index: Rebound
    US$ Flat;
    A$ up 89.31

    FTSE: up 0.5% – Consolidates?
    UK: Financials Lead; Greek Debt Rating to be Downgraded;
    DAX & CAC up 0.2%
    CHINA: up 1.3%
    China: First Gain in Three Days; Health & Power Producers Lead;
    Hang Seng down 0.7%;

    Oil: up 1.7% ($80)
    Consolidating

    Gold: down 0.6% ($1094)
    Commodities Lower;
    Dollar Flat

    SPI Futures up 22 or 0.5% (Resistance?)
    O/S Markets Will Drive Trading

    ASX News
    AIO turnaround FY $79m profit (vs $93m 1H loss); QRL
    SUN 1H profit up 41%; cuts divy; Bank Business Weighs
    VBA – turnaround FY $62m profit (vs $101m loss pcp);
    ORG CEO interviews today

    Reporting:
    Thu DOW, GFF, IAG, LLC, RHC, ORG, MAP, TOL, ILU, OZL
    Fri AGL, HVN, QBE,WOW, ANZ (update)

    ASX to open higher
    US & UK positive leads

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    US Markets Higher On 24/2/2010

    Thursday, February 25th, 2010

    The US markets closed higher after Ben Bernanke testified interest rates would remain low.    The Dow closed  up 91 points or 0.9%  at 10,374, the  S&P500 was up 10 points or 1.0%  at 1105 and the Nasdaq was up 22 points or 1.0% at 2235.

    Gold was lower while  oil was higher.    Gold settled down $6.40 at $1096.80/oz  and crude oil was  up $1.21  at $80.07/bbl.

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    Pryme Oil and Gas Bring Two New Wells Online

    Thursday, February 25th, 2010

    Pryme Oil and Gas (PYM) have brought two new wells online at their Four Rivers site.

    The Crosby 16-4 No.2 well in the Kelly Hill Prospect, which was drilled to a depth of 7,000 feet in December of 2009, was tied to production facilities earlier this month. The well is currently producing 30 barrels of oil per day at a stabilized rate.

    The first well drilled in 2010 in the Four Rivers Project, the LP Minerals No.1 in the Louisiana Pacific Prospect, which was drilled to a depth of 4,500 feet and logged in January, has now been tied into production facilities. The well is currently flowing at 50 barrels of oil per day.

    “The LP Minerals well was put online 48 hours ago and production has gradually increased to the current rate of 50 barrels per day. We are encouraged by the positive production characteristic and optimistic about the well’s ultimate oil recovery. The well is located more than 1000 feet from the closest producing well, the Jack Allen No 7,” said Justin Pettett, Pryme’s Managing Director.

    Pryme has a 25% Working Interest (18.75 – 20% Net Revenue Interest (NRI)) in the Four Rivers project which extends from Winn, Concordia and Catahoula Parishes in Louisiana to Adams, Jefferson and Wilkinson Counties in Mississippi. The project is targeting multiple “stacked” oil zones throughout the Middle-Wilcox formation and, to a lesser extent, shallow Frio natural gas zones, at depths ranging from approximately 4,000 to 7,000 feet. Wells drilled in the Middle-Wilcox exhibit long production lives with low decline rates after the initial flush oil is produced and relatively steady production is established. They are relatively inexpensive to drill and typically have low operating and on-going maintenance costs.

    www.prymeoilandgas.com

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    Pro-Pac Packaging Announces Record Profit

    Thursday, February 25th, 2010

    Innovative packaging solutions provider, Pro-Pac Packaging Limited (PPG), announced record half year revenues and profits. Revenue of $46m was 22% up on the previous corresponding period and after tax profits were up 248% at $3m. EBITDA was $5.6m for the half as compared to $2.6m for the previous corresponding period. Earnings per share for the half were approximately 2.5c.

    Strong performances were recorded by both the industrial and rigid packaging divisions, both of which exceeded budget expectations for the half year.  Revenue growth and margin enhancement during the period under review were in large part driven by management’s focus on winning and supporting key quality national corporate clients and offering a more diverse, integrated and cost effective packaging solution. The results for the period also reflect management’s focus throughout calendar 2009 on improved customer support, procurement and logistics. A return to more stable input costs and a stronger Australian dollar were also positive contributors.

    Cashflow generated form operating activities was positive $2.8m for the period. During the period the Company continued to invest significantly in additional working capital to support its strong organic growth.  The Company’s balance sheet remains robust with shareholders’ equity growing to $53.5m and total assets increasing during the six month period by $5.6m to $79m as at 31 December 2009. Net interest bearing debt was $6.8m resulting in a conservative gearing ratio of 13% (net interest bearing debt/shareholders’ equity).

    In light of the strong result, the Company today declared a fully franked interim dividend of one (1c) cent per share. The Record Date for determining entitlements to the dividend is 12 March 2010. The dividend will be paid on 9 April 2010. The Company’s Dividend Reinvestment Plan (DRP) will apply to this interim dividend at a discount of 3%.

    The Company is actively considering a number of strategic earnings accretive acquisition opportunities. The quality of acquisition opportunities has improved over the reporting period as capital and credit markets for small to medium sized business enterprises remain difficult.

    www.propac.com.au

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    Hastie Group Secures Two New Contracts

    Thursday, February 25th, 2010

    Hastie Group (HST) announced that it had secured two new contracts.

    The first a $119 million contract to provide mechanical, hydraulic and medical gas services for the new $1.76 billion Gold Coast University Hospital in Queensland. The contract has been awarded to Hastie by Bovis Lend Lease, which has been appointed managing contractor by Queensland Health, following an extensive evaluation of Hastie’s integrated service offering.

    Work is starting immediately and the majority of services will be delivered during the 2011 and 2012 financial years. Hastie dedicated integrated project delivery teams are being accommodated adjacent to the site.  The new hospital will provide research and teaching facilities, as well as clinical services. Constructed on a 19 hectare site at Parklands Drive, Southport, it will have 750 beds and provide a range of medical services including radio therapy neuroscience, neonatal intensive care, high level trauma response and cardiac surgery.

    ‘We are delighted Bovis Lend Lease has chosen Hastie for this major healthcare project,’ said Mr David Harris, Hastie’s Group Managing Director and CEO. ‘The Gold Coast University Hospital contract confirms Hastie’s position as Australasia’s leading technical building services provider for the healthcare sector, and one of the world’s leaders in this specialised field that requires the highest quality standards. The contract also endorses Hastie’s model which enables local delivery of specialist services, supported by the group’s global expertise, and provides seamless integrated solutions for major projects.

    Also the Hastie Group Limited’s Rotary business has been named preferred contractor for The Co-operative Group’s new flagship headquarters in Manchester, UK. This £25 million (A$44 million) project is to design and install mechanical, electrical and public health services for a 15 storey building with 30,000 square metres of office space.

    The contract, which is subject to finalisation, will be with BAM Construction, part of the Royal BAM Group nv which is one of Europe’s largest construction companies.  The new building will be one of the most sustainable buildings in Europe. It has been designed to achieve an outstanding BREEAM (Building Research Establishment Environmental Assessment Method) rating and will incorporate bio-fuel combined heating and power technology, earth tube ventilation, hydrocarbon chillers and absorption cooling.

    The Co-operative Group, which has an annual turnover over £10.0 billion and 120,000 employees, operates a wide range of businesses including supermarkets, a bank, travel agencies, pharmacies, legal services and funeral homes. Its new headquarters will be the first phase in the redevelopment of its existing 20 acre campus.

    ‘Rotary’s selection as preferred contractor for this prestigious project confirms its strong reputation in the UK market,’ said Mr David Harris, Hastie’s Group Managing Director and CEO. ‘It also demonstrates Hastie Group’s credentials as a leader in environmentally sustainable development.’

    www.hastiegroup.com.au

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    Hey look, we’re famous!

    Wednesday, February 24th, 2010

    Particularly in Geelong…

    The Geelong Advertiser published this article yesterday about home-town boy (and Trader Dealer CEO) Damian Isbister, and the launch of Rapid Trader.

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    Wednesday, 24th February 2010 Morning Wrap

    Wednesday, February 24th, 2010

    Presented by Michael Hevern
    MDSFinancial

    Click here to watch the presentation.

    or

    Click here to download the mp3 audio recording (764Kb).

    General Advice Only
    ***********************************************
    In this morning s wrap

    SP500 down 1.2%
    IMF Warns Do Not Unwind Stimulus Just Yet;
    Consumers Not So Confident

    Dollar Index: Rebound
    US$ Up;
    A$ down 89.01

    FTSE: down 0.7% – Consolidates?
    UK: Energy & Miners Lead Declines;
    DAX & CAC down 1.4%

    CHINA: down 0.7%
    China: Confused After Holiday;
    Hang Seng up 1.2%;

    Oil: down 1.9% ($78)
    Pullback

    Gold: down 0.9% ($1104)
    Commodities Lower;
    Dollar Higher

    SPI Futures down 54 or -1.1% (Resistance?)
    O/S Markets Will Drive Trading

    ASX News
    ALL tough! FY loss $157m; Rev down16%;
    SHL misses but 1H Profits up 13%; F cast FY 10%-15%
    OSH Sharp fall in Profits on lower prices & sales

    Reporting:
    Wed SUN ,PBG, MOC, CNP, VBA, REX, TSE, SKE, AIO, FY:WPL, AUN
    Thu DOW, GFF, IAG, LLC, RHC, ORG, MAP, TOL, ILU, OZL
    Fri AGL, HVN, QBE,WOW, ANZ (update)

    ASX to open lower
    US & UK negative leads

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    US Markets Lower On 23/2/2010

    Wednesday, February 24th, 2010

    The US markets closed sharply lower after a worse than expected report on Consumer Confidence.  The Dow closed  down 100 points or 1.0%  at 10,282, the  S&P500 was down 13 points or 1.2%  at 1094 and the Nasdaq was down 28 points or 1.3% at 2213.

    Gold and oil were both lower.    Gold settled down $10.10 at $1103.00/oz  and crude oil was  down $1.45  at $78.86/bbl.

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    Amcom Telecommunications Acquires IP Systems

    Wednesday, February 24th, 2010

    Amcom Telecommunications Limited (AMM) is pleased to announce that it proposes to acquire 100% of the issued share capital of IP Systems Pty Ltd. At settlement of the proposed acquisition, IPS will be a wholly-owned subsidiary of Amcom. IPS is a leading provider of converged voice, video and data solutions to the enterprise market. These solutions are delivered over carrier-grade IP (internet protocol) based technology and fibre-optic networks. This strategic acquisition expands Amcom’s product range into enterprise voice solutions and increases Amcom’s addressable market.

    Initial consideration will be $6.5m comprising cash consideration of $5.3m and 4.1m shares in Amcom at 30c per share. Further consideration in the form of Amcom shares to a minimum floor of $3m and a maximum cap of $14m will be issued subject to IPS meeting agreed profitability levels between 1 July 2009 and June 2012.

    Amcom’s CEO Clive Stein said: “This gives us the potential to significantly increase Amcom’s share of our customers’ spend on telecommunications services. The acquisition also provides opportunities for Amcom to extend its market footprint, with an Amcom office now in most major capital cities. This means Amcom can better serve the needs of national customers and grow our business. IPS has 10 years’ experience in deploying reliable market leading voice and communications technology, and its products are ideally suited to Amcom’s existing customer base. We are very pleased that as a result of this acquisition we will be able to provide our existing customers with a ‘best of breed’ voice and communication solution that enhances our already strong customer relationships. IPS will add approximately $12m revenue to our strongly growing business. Very importantly this transaction has been structured to be EPS accretive for our shareholders from the first full year of ownership,” Mr.  Stein said.

    IPS is a leading Australian provider of IP (internet protocol) based communications technology. Built on a fibre-optic backbone, the IP Systems network delivers converged voice, video and data solutions to major centres in Australia and New Zealand.

    www.amcom.com.au

    www.ipsystems.com.au

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    SMS Management Acquires Bright Blue Solutions

    Wednesday, February 24th, 2010

    SMS Management & Technology (SMX) today announced the acquisition of Bright Blue Solutions Pty Limited, Australia’s leading specialist Oracle Siebel Customer Relationship Management and Oracle Business Intelligence consulting organisation. Key benefits of the acquisition include an addition of $9m in revenue and $2m EBITDA per year by Bright Blue; addition of 37 specialist Consultants across our NSW and VIC teams; a new capability in the CRM and Salesforce Automation domains; enhanced capability in front office Business Intelligence applications; a proven management team to run the new Practice; establishes SMS as the largest specialist provider of Siebel expertise nationally  etc.

    In making the announcement, SMS CEO Tom Stianos said, ‘We have been keen to add this capability for two years and therefore it is very pleasing to announce the acquisition of Bright Blue. The capabilities that Bright Blue brings to SMS are well aligned with our existing Business and Technology Practices, further deepening the services we can extend to our clients nationally. With the market for CRM and salesforce automation forecast to grow by 9% per annum to 2013 (source: Gartner) we are confident that this new practice will prosper as part of the broader SMS enterprise’.

    Commenting on the acquisition, Bright Blue Managing Director Lachlan Hanly said, ‘Joining SMS marks a significant milestone in the history of Bright Blue. It gives us the opportunity to grow the practice further and extend our services to the broader SMS client base and also expands the career opportunities for staff in both companies. Clients of both companies will also benefit from the broader services we can now offer. It creates a clear alternative implementation partner for business critical CRM and BI projects outside of the multinational consultancies and offshore providers’.

    SMS Management & Technology (SMX) is Australia’s leading consulting, technology and systems integration company employing over 1,200 professionals. Established in 1986, SMS is best known for delivery excellence. SMS helps its clients improve their business performance through the implementation of strategy and the delivery of business and technology projects. Industry expertise spans the financial services, ICT, government, defence, health, utilities, mining, gaming and infrastructure sectors.

    www.smsmt.com

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