ArgonautArgonautArgonautArgonaut
  • About Us
    • Business Model
    • Regulation
    • Community
    • Jason and the Argonauts
    • Disclaimer and Disclosure
    • COVID-19 Visitor Requirements
  • Corporate Finance
  • Stockbroking & Research
    • Stockbroking
    • Research
    • Best Execution Policy
    • Administration Forms
    • Open an Account
  • Special Situations
  • News
    • Latest News
    • Morning Notes
    • Latest Research
  • Contact
    • Careers
      • Advisers
      • Graduate Program
      • Internship Program

11/05/2016 Argonaut Morning Note

    Home Stockbroking & Research Morning Notes 11/05/2016 Argonaut Morning Note
    NextPrevious

    11/05/2016 Argonaut Morning Note

    By admin | Morning Notes | 0 comment | 10 May, 2016 | 0

    Market Update & Important Indicators

    A broad rally bolstered by rebounding oil prices Tuesday put major U.S. indexes on track for their biggest one-day gain in about a month. Assets investors often consider havens such as gold and U.S. government debt were relatively steady, a sign many weren't convinced that the rally will last, traders and analysts said.  "It shows us investors want to be in this market, but they're not fully committed," said Jonathan Corpina, senior managing partner at Meridan Equity Partners. Trading volume was relatively light compared with other days when stocks have gained sharply, traders said. While all 10 sectors of the S&P rose, gains in energy and financial stocks outpaced the broader market. Stocks in the U.S. have traded within a narrow range in recent weeks, as investors struggle to reconcile a recent rebound in equity prices with a lackluster earnings season and concerns about the health of the global economy.

    European stocks moved up as gains for Credit Suisse and Volkswagen shares and an important breakthrough on the Greek debt crisis allowed investors to set aside disappointing economic data. The Stoxx Europe 600 climbed 0.9% to close at 336.24, a second consecutive advance following Monday's 0.5% rise.  In the financial sector, Credit Suisse shares popped up 5% after the bank posted a smaller-than-expected loss of 302 million Swiss francs ($311 million). The lender has been struggling to restructure its investment banking business. Meanwhile, Volkswagen shares bulked up 4%. The auto maker is close to a remedy to fix thousands of 3-liter diesel-powered vehicles in the U.S., according to a Bloomberg report. Volkswagen has been engulfed in an emissions-cheating scandal that kicked off in the U.S.

    Shares in Asia reversed earlier losses to end mostly higher on Tuesday, led by a surge in Japanese stocks after officials warned that the government could intervene against a sharp rise in the yen.  Japan's Nikkei Stock Average ended up 2.2% and Korea's Kospi rose 0.8%. In China, the Shanghai Composite Index ended little changed. Hong Kong's Hang Seng Index was up 0.4%.

    Gains by Australian banks in the wake of earnings season offset weakness in resources stocks Tuesday, as the equities market rose for a fourth straight session. Despite opening lower, the S&P/ASX 200 rose steadily through the day to finish up 22.1 points, or 0.4%, at 5342.8 — just 11 points shy of the closing high for the year hit a week ago. Gains by the four biggest banks together added almost 22 points to the ASX 200, countering falls in the energy and materials sectors after crude oil, iron ore, copper and other commodities fell amid worries about China's appetite following recent economic data. Among mining stocks, BHP Billiton and Rio Tinto sank 3.2% and 2.9%, respectively, while fellow iron-ore producer Fortescue Metals Group slid 6.3%.

    The London Metal Exchange's three-month copper contract was down 0.02% at $4,685 a metric ton at the end of open-outcry trading, having hit a one-month low earlier in the session at $4,672 a ton. Among the other base metals, aluminum closed down 0.4% at $1,536 a ton, zinc was up 0.7% at $1,842 a ton, nickel was up 1.2% at $8,668 a ton, lead was up 1% at $1,747 a ton and tin was down 0.3% at $17,195 a ton.

    In this Issue

    GR Engineering | Up on UPS | BUY
    Market Cap $146m | Current Price $0.955 | Valuation $1.25
    GNG’s minerals engineering business is coming to the end of a very busy year.  There is a solid study pipeline into FY17, however the formal award and timing of project work is uncertain.  Therefore the addition of two longer term revenue streams worth close on $50m p.a. via contract wins by Upstream Production Solutions (UPS) is excellent news.  It ratifies GNG’s late-2013 decision to diversify into oil & gas and significantly enhances revenue visibility.  Our numbers climb on the back of this win, as does our blended valuation which, at $1.25 (prior $1.15), continues to underpin a buy call.

    Recent Contacts & Presentations

    Red 5 (RED), Medusa Mining (MML), Saracen Mineral Holdings (SAR), Paradigm BioPharmaceuticals (PAR), Pilbara Minerals (PLS), Energia Minerals (EMX), Deep Yellow (DYL), Paladin Energy (PDN),), West Africa Resources (WAF), Finders (FND), Credo Resources (CRQ) , Orthocell (OCC), Capricorn Metals (CMM), Gold Road Resources (GOR), Otto Energy (OEL), Dakota Minerals (DKO), Cradle Resources (CXX), Kidman Resources (KDR)
     

    Please read Argonaut's Important Disclaimers & disclosures

    Log in to the client area below to download the full Morning Note PDF

    Argonaut Morning Note

    No tags.

    NextPrevious
    • About Us
      • Business Model
      • Regulation
      • Community
      • Jason and the Argonauts
      • Disclaimer and Disclosure
      • COVID-19 Visitor Requirements
    • Corporate Finance
    • Stockbroking & Research
      • Stockbroking
      • Research
      • Best Execution Policy
      • Administration Forms
      • Open an Account
    • Special Situations
    • News
      • Latest News
      • Morning Notes
      • Latest Research
    • Contact
      • Careers
        • Advisers
        • Graduate Program
        • Internship Program
    Argonaut

    Argonaut | The Natural Choice in Resources.
    © 2022 Argonaut.

    Corporate Finance
    Stockbroking & Research
    Contact Us

    Argonaut | Perth

    Level 30, Allendale Square, 77 St Georges Terrace Perth, WA, 6000 Australia

    clientservices@argonaut.com

    ABN 72 108 330 650

    Argonaut | Login

    Client Area Help
    Register for Access to Client Area
    Privacy Policy
    Financial Services Guide 
    Website Disclaimer

    Copyright 2022 | Website ⚡ by Start Digital