Telstra Corporation. (TLS) will go ex dividend on 22/8/2011. The current dividend payment is 14 cents and it is 100% franked. The record date is 26/8/2011 and the dividend will be paid on 23/9/2011. Based on the full year payment the dividend yield is 9.2%.
*Current Yield: 4.6% Franking: 100% DRP Discount: Not Available
*Yield has been calculated on the closing price on the 15/8/2011. Current yield is based on the current dividend payment only.
Thiess Services, a wholly owned subsidiary of Leighton Holdings (LEI) will benefit from a major five year Telstra contract awarded to Silcar, a joint venture company between Thiess Services and Siemens Ltd. Under the new contract, Silcar will provide Network Integrity and Facilities Management services for Telstra’s exchanges and assets nationwide under a five year agreement estimated at $350m. Silcar will undertake asset management and maintenance on Telstra’s network facilities that support its telecommunications network, including critical infrastructure such as standby power, energy and cooling systems.
Thiess Managing Director David Saxelby said the contract reaffirmed the working relationship between the two organisations was built on proven performance. “Silcar’s strong relationship with Telstra has grown over more than 10 years and this contract recognises Silcar’s advanced and reliable capabilities,” Mr Saxelby said. Thiess Services Executive General Manager and Silcar Chairman, Michael Wright, said the contract would provide Silcar with renewed opportunities to support Telstra in improving the value and sustainability of its network facilities. “Silcar will to continue to work safely and maintain the superior level of service Telstra has come to expect in the delivery of network integrity and facility management services,” Mr Wright said.
Thiess Services is a wholly owned subsidiary of Thiess Pty Ltd, and has an annual turnover of approximately $1 billion. The company provides integrated, environmentally responsible services to a range of business sectors, including water, energy, contaminated site remediation, waste management, telecommunications, infrastructure operations and maintenance, and facilities management. Thiess has an annual turnover of $7 billion and $16 billion work in hand. With over 17,000 employees, it has become one of Australia’s leading and most trusted construction, mining and services companies.
http://www.traderdealer.com.au/Fundamentals/lei
World Reach Limited (WRR) is pleased to announce that it’s wholly owned subsidiary, Beam Communications Pty Ltd, has received a significant order from Telstra Corporation with a value of $2M. This order for Beam’s “SatDOCK” In-vehicle Hands-free Docking Station and an Iridium Satellite Telephone follows the initial order in December 2009 and will also include the latest Beam IntelliDOCK and Beam RapidSAT solutions. These units will be distributed through Telstra’s extensive Australia wide sales channels. Beam has experienced strong acceptance in the market for its Iridium based docking solutions and this additional major order from Telstra further demonstrates the demand for these bundled solutions for the Australian market place. Deliveries will commence in September and will be completed by February 2011.
Beam Communications Pty Ltd is a wholly owned subsidiary of World Reach Limited (WRR). Beam Communications designs, manufactures and distributes a wide range of Satellite and GSM voice, data, tracking terminals and accessories for the global telecommunications market. Through a global network of Resellers Beam solutions are deployed into a wide range of vertical markets including Maritime, Transport, Government, Defence, Mining, Construction, Forestry, Emergency Services, Relief Aid, Telemetry and Rural Telephony. World Reach Limited is an Australian publicly listed company, with strategic ownership of companies involved in the design, manufacturing and distribution of equipment, applications and services to the global needs of Information Communication & Technology markets. World Reach Limited is an Australian publicly listed company, owning 100% of Beam Communications Pty Ltd.
http://www.traderdealer.com.au/Fundamentals/wrr
The federal election result is finally resolved after two and a half weeks of negotiations. The Labor party will form a minority government alongside Greens MP Adam Bandt and independents Andrew Wilkie, Tony Windsor and Rob Oakeshott, for a 76 (Labor) to 74 (Coalition) decision. Ms Gillard is now the first elected female prime minister of Australia.
This means that investors now have clarification on:
National Broadband Network (NBN) – This was a key differentiator in the final decisions of the independents. Telstra stands to receive $11 billion from the Labor government as the NBN goes ahead.
Super Levy – Labor will implement a 12% compulsory level which will favourably impact banks and investment funding pools.
Minerals Resource Rent Tax (MRRT) – The mining tax will get the go-ahead, and our miners will be directly impacted by this. Indirectly, the MRRT will impact superannuation investment returns.
Banks – Will benefit from the 12% super levy. With the return of the Labor Government, banks should avoid being in the government spotlight with regard to the imposing of taxes on their super profits tax, which would have negatively impacted their bottom line.
Infrastructure – There will be some additional spending, or promises brought forward for infrastructure spend, particularly in regional electorates. This will positively impact our construction sector.
Gambling – Anti-pokie supporters may get a bigger say. This would negatively impact stocks like Crown, TabCorp and Tattersalls.
The 17-day process for reaching the final resolution of the election has meant that investors have been hesitant to commit to the market, as reflected in the low trading volumes of late. The decision for a minority Labor government has given some clarity “going forward”. We have highlighted above some of the specific stocks that will be impacted with the new government policies.
The key issues that swayed the decisions of the independents included:
The independents have guaranteed the passage of bills that are essential to keep the government functioning, such as supply. However they will not necessarily vote with Labor in all matters, so time will tell how workable the new minority Labor government will be. In the words of MP Rob Oakeshott, we are in for “a WOW of a time”.
By Michael Hevern
Head of Research
The unresolved Federal Election on the weekend has left the country with a hung parliament for the first time since the 1940’s and raises a number of issues for investors which include:
Super Levy – Labor is pushing for a 12% compulsory level which will favorably impact banks and investment funding pools.
Minerals Resource Rent Tax (MRRT) – The mining tax hangs in the balance with the Liberals promising to abolish the tax. Our miners will be directly impacted by this. Indirectly, the resolution of the MRRT will impact superannuation investment returns.
National Broadband Network (NBN) – Telstra stands to receive $11 billion from the Labor government if the NBN goes ahead, but the Liberals are promising to abandon this, thus hurting Telstra’s bottom line.
Banks – Are set to benefit from the 12% super levy. However, there may be concerns that a new government will turn their attention to imposing taxes on their super profits tax, which will negatively impact their bottom line.
Infrastructure – There may be some additional spending, or promises brought forward for infrastructure spend, to get either party across the line, particularly in regional electorates. This would positively impact our construction sector.
Gambling – Anti-pokie supporters may get a bigger say. This could negatively impact stocks like Crown, TabCorp and Tattersalls.
The Trade
The final resolution of the elections is likely to take at least another week and this will impact the Australian market as a whole, as investors do not like uncertainty.
Obviously the ultimate outcome of the elections will have impacts on specific stocks. However at this stage experts cannot agree on who will emerge triumphant, so it is difficult to position your portfolio accordingly.
By Michael Hevern
Head of Research
Telstra Corporation (TLS) will go ex dividend on 23/8/2010. The current dividend payment is 14 cents and it is 100% franked. The record date is 27/8/2010 and the dividend will be paid on 24/9/2010. Based on the full year payment the dividend yield is 9.6%.
*Current Yield: Franking: 100% DRP Discount: Not Available
*Yield has been calculated on the closing price on the 13/8/2010. Current yield is based on the current dividend payment only.
U.S. stocks ended the day flat but are up for a second week. Across in Europe, Spain successfully auctioned off it’s debt to refresh it’s funds and plans to publish banks’ stress test results in the next few weeks, this lead to improved investor confidence. Our market is likely to open flat with Telstra and Gold stocks to provide support.
The SPI Futures is above the key level of 4500 the ASX is set to open flat as the SPI closed up 6 points (or 0.1%) at 4,566. Key levels this week are 4450 and 4650. Expect our market to trade flat today with gold stocks again in focus as the precious metals reaches record highs, also expect to see some action in Telstra after progress on the $11 billion NBN deal.
Miners, and in particular gold miners, lead again the U.S., as the precious metal again closed at new highs. Friday in the U.S. also saw the options and futures contract expire which bought about an increase in trading volumes but market volatility overall decreased. In the U.S. the index of leading indicators, a key gauge of the outlook for growth over the next three to six months, rose 0.4 per cent in May, while other data showed the cost of living dropped and the claims for jobless benefits unexpected increased to the highest level in a month. The data is confirming that even though the U.S. economy will keep expanding in the second half of 2010, it will be with begin with inflation and little job growth.
The Dow rose 16 points, or 0.2 per cent, to 10,450 (up 2.2% for week), while in the broader market the S&P 500 index gained 1 points, or 0.1 per cent, to 1,117 (up 2.4% for week), and the tech-heavy Nasdaq ended flat at 2,310 (up 2.9% for week).
In Europe markets ended flat but have had positive moves in the past two weeks, as the German market continue to perform well. The primary focus has been on Spain and successful bond issues and plans to publish its banks’ stress test has resulted in improving investor confidence. The International Monetary Fund (IMF) are “very confident” over Spain’s efforts to shore up it banks and reduce its budget gap. Spain is the fourth-largest of the 16 country EU economies behind: Germany, France and Italy.
In the U.K. the London FTSE 100 index added 3 points, or 0.06 per cent, to 5,251 points (up 1.8% for the week). The German DAX gained 6 points, or 0.1 per cent, to 6,217 points (up 2.2% for week), while in France, the CAC 40 rose 4 points, or 0.1 per cent, to 3,687 points (up 3.9% for the week).
China has made a move on its currency ahead of this weeks’ G20 meeting, by announcing it will be removing its two year yuan peg to the US dollar, not in a one-off revaluation but will be appreciated in an orderly manner. This is potentially good news for our miners because a strengthening in Chinese currency will make our resources cheaper.
In Asia the Nikkei index of the Tokyo Stock Exchange eased 0.1% to end at 9,995 (up 2.7% for the week). The benchmark Hang Seng Index was up 0.7% at 20,286 (up 2.2% for the week), and China underperformed down 1.8% at 2513 (down 2.2% for the week).
Oil prices finished the week above US$77 a barrel overnight as U.S. The benchmark crude NYMEX for July delivery up US$0.39 to settle at US$77.18 a barrel. Copper prices finished down again but remains around the critical $US3.00 a pound. Copper for July delivery fell 2.1 cents to settle at $US2.882 a pound. Gold closed at a record on concerns about the pace of the U.S. recovery, with August gold jumped $U9.60 to settle at $US1,258.30 an ounce.
Key News Drivers Today
G20 – meeting to be held in Toronto this week.
IMF – are “very confident” over Spain’s efforts to shore up it banks and reduce its budget gap. Spain is the fourth-largest of the 16 country EU economies behind: Germany, France and Italy.
YUAN – China to end its twp-year yuan peg to the US dollar. China has signalled a “more flexible yuan” currency policy, which will allow its currency appreciate in an orderly manner against the US dollar. The yuan has been pegged at 6.83 against the US dollar since mid-2008. It will not be a one-off revaluation.
RSPT Tax – is based on a “flawed” economic theory according to a new study commissioned by the mining industry. They also said the tax will extensively impact job losses and lead to increased volatility in Austalias tax revenue base.
U.S. Markets Up for Second Week; Gold Shines
SP500: flat at 1,117 – Above 200 day Moving Average (up 2.4% for week)
DOW up 0.2% at 10,450 – Above 10,000 (up 2.2% for week)
NASDAQ: up 0.1% at 2,310 (up 2.9% for week)
Dollar Index: lower at 85.33 on Higher Euro
A$ higher at 87.96
FTSE: flat at 5,250 – Financials Weigh (up 1.8% for week)
DAX down 0.1% at 6,217 – Still in Outperforming (up 3.0% for week)
CHINA: down 1.8% at 2,513 (down 2.2% for week)
HSI up 0.7% at 20,286 (up 2.2% for week)
Oil: up 0.2% ($77.18)
BP Faces Off Congress
Gold: up .9% at ($1,256)
Commodities Mixed
SPI: Above key Level 4500 ASX
SPI up 0.1% at 4,566
The SPI Futures is above the key level of 4500 the ASX is set to open flat as the SPI closed up 6 points (or 0.1%) at 4,566. Key levels this week are 4450 and 4650. Expect our market to trade flat today with gold stocks again in focus as the precious metals reaches record highs, also expect to see some action in Telstra after progress on the $11 billion NBN deal.
AUD – higher at 87.95
AMU – Amadeus Energy has revealed it’s the target of takeover moves by U.S. companies.
ALS – Alesco will post a $126 million net loss in FY10 and suspend its dividend until March 2011, due to impairments and one-off expenses.
ANZ – has signed a memorandum of understanding (MoU) with China Development Bank (CDB) to drive trade and investment flows between China and NZ.
BXB – may lose business to its U.S. rival iGPS, as the U.S. company has told investors it is close to
winning more business from Brambles. This news added to the concern that BXB could miss earnings expectations when it reports in August. Shares were down 4.8%.
CFE – An ASX trading ban on two companies connected to controversial Romanian entrepreneur Frank Timis has been overturned on appeal. The ban on International Petroleum (IPO) and Global Iron (GFE) from trading was “infected by error”, an appeal by the companies to the ASX found. CFE could be indirectly affected by the decision.
GRR – Grange Resources the iron ore miner says a rock slide at its Savage River mine in Tasmania on Thursday is not expected to affect the operation.
CSD – Consolidated Tin Mines, the junior tin exploere says it will begin talks with potential Chinese customers and joint venture partners for its Mt Garnet project in northern Queensland.
DJS – management will meet with its biggest shareholder (Ausbil) this week to discuss its plan to defend its brand as a result of last weeks’ surprise resignation of CEO Mark McInnes.
ELD – in a trading halt as Elders the rural services provider Elders is expected to issue a trading
and operational update next Tuesday morning.
GFF – Goodman Fielder says it has raised $350 million worth of unsecured notes in the U.S. to help repay bank debt.
MAP – has experienced strong growth in passenger numbers at its three Australian and European airports in May, with operations returning to normal after the volcanic ash
cloud over Europe in April.
SDL – likley to be in a trading halt as six mining execs including Ken Talbot (formerly of MacArthur Coal) are missing, reared dead, in the Congo, West Africa on missing plane.
TLS - to receive $11 billion from the government in exchange for sharing its infrastructure with the NBN and migrating customers to the new fibre network. This is a huge step in resolving issues between the government and Telstra re the NBN roll out.
ABS – reports on international merchandise imports and motor vechiles sales data for May
KEN – Henry to address the Institue of Chartered Accountants tax reform conference today
Market volatility will continue near term, some speculative accumulation is underway.
We the suggest trading strategy is to tighten stops. Be prepared to take profits, remember we are trading into the end of the financial year. Trade gold and Telstra stocks today.
ASX – to open flat
US & UK/Europe – flat
US ADRs – Generally Positive!!!…
BHP up 1.2% & RIO up 0.6%; AWC 2.6%
ANZ up 2.1% & NAB up 1.4%
NEM up 2.6%, JHX down 0.9%, NWS down 0.3%
Commodities Stock Index up 0.7%
Gold Stocks Index up 1.4%
Oil Stocks Index up 0.7%
By Michael Hevern
Head of Research
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pieNETWORKS (PIE) and Telstra Corporation Limited (TLS) have agreed the form of documentation for the deployment of a network of 50 pieNETWORKS’ Hotspot Webphones in a 4 month assessment for the Australian market which will be completed later this year. The Webphones will be deployed in a number of high profile indoor sites across Australia.
Subject to the success of the market assessment, pieNETWORKS and Telstra will negotiate the commercial terms for a large scale deployment of pieNETWORKS’ Hotspot Webphones. Execution of formal documentation is expected to be completed within the next 3 business days.
Telstra will have to pay a $40 million fee, if the Australian Competition and Consumer Commission has its way.
The consumer watchdog wants the telco to pay $1 million for each instance of its refusing to give a competitor access to Telstra-controlled telephone exchanges. Telstra is arguing the refusals were mistakes made by junior staff.
The ACCC and Telstra are currently battling it out in the Federal Court.
Telstra Share Price
Telstra
ASX – TLS
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For more on this business news story:
The Age: “Watchdog pushes for $40m penalty for Telstra”
Connxion Ventures Limited (CXN) today announced that it has entered into an agreement to acquire the business, assets, and customer contracts of KAZ Singapore from Telstra Singapore Pte Ltd, a business 100% owned by Telstra Corporation Limited (TLS). The business provides data management, IT infrastructure support services, call centre operations, IT outsourcing and support to a range of international blue chip corporations operating in South East Asia, and will provide Connxion with a new recurring revenue stream. The business is forecast to generate significant revenue in FY2010 and will make an immediate contribution to CXN’s earnings from the date that the acquisition is completed.
The data centre will allow CXN to internally house its core data services, which are currently outsourced to IBM and other data centres. CXN will be able to reduce its data centre costs and significantly increase margins on a number of its key contracts that use these services.
CXN’s Chief Executive Officer, Bill Brooks said, “This acquisition provides CXN with a major growth opportunity. It presents us with significant organic growth opportunities, it strengthens two of our key verticals – data and online services, expands our presence in Asia, and strengthens our blue chip customer base. It also provides opportunities for CXN and Telstra International to co-operate on joint projects. We will be working with KAZ SG’s customers on integrating their contracts into CXN. We expect they will be very encouraged by our capabilities, our team, and the range of additional services we can bring to them. A further upside for CXN is the organic growth them. This transaction marks another important step in CXN’s growth and provides us with the in-house technologies and services to significantly accelerate our revenue growth. Annualised revenue is now $25 million and we are still in the very early stages of our growth” Mr. Brooks said.
CXN invests in and offers a complete data and transaction solution to clients that ranges from online document creation and delivery to payments, loyalty and rewards programs. CXN is positioned for continuous growth as companies are increasingly adopting these data and transaction related services to generate greater efficiencies and grow their business in this new and challenging environment.
