Yovich & Co. Market Update - 15 February 2019
Feb 15, 2019 | Commentary
New Zealand Equities
In summary, the NZX50 had 10 companies on the downside, 2 remained unchanged and 38 companies were on the upside. No material change in the NZD/AUD exchange rate; closing at 0.9515. The NZD/USD has weakened slightly over the week, which will help NZ exports.
Pushpay reached $3.74 per share when it announced that it had reached a goal of break-even cash flow at the end of 2018. Since then the price has pulled back to $3.34 per share.
Westpac along with the other Australian Banks has seen a positive response since the release of the Hayne Royal Commission enquiry. Share price moved from $25.84 on 4 February to $28.00 at close on 8 February.
ASB Capital Limited
The Buy-Out of the ASBPA and ASBPB (ASB Capital Limited Perpetual Preference Shares), has been announced at NZ$1 for each Perpetual Preference Share and will be paid to shareholders on 15 May 2019. This has resulted in some good capital gains for investors who invested below 90c in the dollar.
Have reacted positively after the Royal Commission final report on the 4 February.
ANZ up $1.95 (6.27%) at $27.95. Westpac up $1.705 (6.55%) at $27.65.
Commonwealth Bank up A$3.48 (4.95%) at A$73.60. National Australia Bank up A$0.27 (1.12%) at A$24.30.
Tax paid profit for the six months ending December is up $218m (376%) at $276m, this includes realising the gain on the sale of Rockgas and AGS of $172m. Operational costs were down $4m (4%) compared to last year. Due to a robust balance sheet the Board is changing its distribution policy, to distribute ordinary dividends targeting a pay-out of 100% of Operating Free Cash Flow. In line with the new policy the targeted FY19 dividend is 39 cents per share, up 7 cents on FY18 dividends.
An interim dividend of 16 cents per share is payable 9 April, at current share price of $6.34 the gross yield is 8.52%.
Briscoe Group Limited
Has announced record sales of over $206m in the final quarter ending 27 January 2019. The expected tax-paid profit for the FY18 is to be a new high at around $63m up 2.7% on last year.
The current share price is $3.36 and expected gross dividend yield is to be 8.05%.
Has been given the clearance from the New Zealand Commerce Commission regarding the sale of its seed business to DLF Seeds. The sale had received overwhelming support with 96% of shareholders in favour of the proposed transaction. The Commerce Commission approval has seen the share price increase in value from 47.5 cents to 56 cents per share, a 17.89% rise.
Tax paid profit for the HY19 ending December is up $1.7m (15%) at $13.4m. The Interim dividend payable 21 March is up 1.5 cents at 5.5 cents per share. Forecast full-year net profit in the range of $29-$31m. With current share price at $2.09, the gross dividend yield is 6.2%.
Disclaimer: This publication has been prepared for your general information. While all care has been taken in the preparation of this publication, no warranty is given as to the accuracy of the information and no responsibility is taken for any errors or omissions. This publication does not constitute financial or insurance product advice. It may not be relevant to individual circumstances. Nothing in this publication is, or should be taken as, an offer, invitation, or recommendation to buy, sell, or retain any investment in or make any deposit with any person. You should seek professional advice before taking any action in relation to the matters dealt within this publication. No part of this publication may be reproduced without prior written permission from our company. Disclosure statements relating to the financial advisers associated with this newsletter are available on request and free of charge.
Investment News Skellerup SKL.nz PGG Wrightson PGW.nz Briscoe Group BGP.nz Contact Energy CEN.nz Australia Banks ASB Capital Limited Weekly Update Investment Shares Bonds