Yovich & Co. Weekly Update - 1 December 2014

Dec 1, 2014 | Commentary

 Changes in Market



This Week’s Themes

  • After the New Zealand market traded above the 5500 level for the first time the previous week, the market fell away with investors taking profits after another strong run. Overall, the market edged out a 0.68% gain for the month.

  • The Aussie market traded sideways as traders weighed up the positive effects of the required increased stimulus in the Chinese economy after further economic data showed that growth is not as high as expected. In November the ASX 200 fell by 3.8% with both the Financials and Mining Stocks dragging the market lower over the month.

  • U.S. markets continued their march upwards to post fresh highs as investors were buoyed by further expansionary monetary policy in both Europe and China. The Dow Jones marked a 2.52% gain for November.

  • The NZD lost a little ground on the USD last week but overall for the month the Kiwi was stronger by 0.6% against the Greenback. The relative strength of the NZ Economy compared with Australia was evident with the Kiwi moving over 4% upwards against the Aussie.

Investment News

Recent and New Listings

There have been a flood of new small listings on the NZX over the past few months, a strong indication of the health of the New Zealand equity market. Below is a summary of some recent listings and a preview of a couple that are listing before Christmas:

Arvida Group – ARV.nz

Arvida is a group of 17 Retirement Villages throughout New Zealand.  The $75 million raised in the IPO will facilitate further acquisitions and enable greater integration between the existing operations. It is expected that Arvida will pay a gross dividend yield of 5.9% in the 2016 financial year.

Listing Date: 18 December 2014                      Current Price: To Be Listed                      IPO Price: $ 0.95

Evolve Education Group– EVO.nz/EVO.asx

Evolve is a NZ based Early Childhood Education (ECE) service provider. They have various brands including Lollipops with 50 ECE Centres, the PORSE home based care business and a further 55 ECE Centres.  The IPO price relates to a gross dividend yield of 6.52% and a Price to earnings ratio of 10.65 times.

Listing Date: 5 December 2014                        Current Price: To Be Listed                      IPO Price: $ 1.00

TruScreen Limited – TRU.nz

TruScreens development began in the late 1980s under the guidance of leading medical academics from Sydney University. Their principal product is a Cervical Cancer detection product which is now commercially available globally and relies on Opto Electrical Technology which has been developed by Truscreen and protected by patents.

Listing Date: 12 November 2014                      Current Price: $ 0.11                           Listing Price: $ 0.16

Orion Health Group Limited – OHE.nz/OHE.asx

Orion Health is a global eHealth software company with experience in delivering solutions for healthcare facilities and organisations. Every day over 300,000 clinicians in 35 countries use their intuitive products to improve clinical workflow, decision-making, and most importantly, patient care.

Listing Date: 26 November 2014                      Current Price: $ 6.09                           Listing Price: $ 5.70

Source: IRESS Market Data


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About the author

Jarrod Goodall

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Weekly Update Investment Shares Bonds Market Commentary Arvida Group ARV.nz Evolve Education Group EVO.nz EVO.asx TruScreen Limited TRU.nz Orion Health Group Limited OHE.nz OHE.asx


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