Market Update & Important Indicators
Global stocks slipped after a renewed selloff in China, as investors await an interest-rate decision from the U.S. Federal Reserve later in the week. About 46% of economists surveyed by The Wall Street Journal in September expected the Fed to raise rates this week, compared with 82% in an August survey. The Dow declined 0.4%, or 62 points, to 16,371. The S&P 500 and NASDAQ dropped by similar percentages.
In Europe, most major indexes gradually moved lower as the session progressed, although Germany's DAX bucked the trend, closing 0.1% higher. In Asia, China shares finished lower in tumultuous trading, as weak data on Chinese factory output pulled prices down despite apparent efforts by Beijing to prop them up. The Shanghai Composite Index finished off 2.7%, paring losses in the last half hour after being down as much as 4.7% during the afternoon session. Markets elsewhere were mixed. The Nikkei Stock Average fell 1.6% while the Hang Seng climbed 0.3%.
Commodities were largely lower overnight. Crude fell, with Brent down 3.7% to $46.37/bbl and WTI off 1.4% to $44.00/bbl. Iron ore lost 1.5% to $58.10/t. Most base metals were weaker as copper and nickel lost 1.1% and 3.7% respectively. Gold, however, remained steady at $1,108/oz.
In This Issue
Threat Protect (TPS) | SPEC BUY
We initiate coverage of Threat Protect with a Speculative Buy recommendation and a valuation of $0.033. The recent $5.5m capital raise provides the funding to complete the acquisition of two businesses that will double Threat Protect’s monitored line client base. With significant additional capacity and operating leverage at the A1-graded control room, we expect the well-articulated roll-up strategy to result in a growing client base and strongly improving margins and earnings. There is upside to our base case valuation as this strategy unfolds.
Recent Contacts & Presentations
Tox Free Solutions (TOX), AWE Limited (AWE), Ausdrill (ASL), GR Engineering (GNG), Medusa (MML), Resolute (RSG), Kingsgate (KCN), Troy (TRY), Northern Star (NST), Sandfire (SFR), Regis (RRL), Saracen (SAR), Sino Gas & Energy (SEH), Dacian (DCN), Buru Energy (BRU), Carnarvon Petroleum (CVN), Otto Energy (OEL), Empire Oil & Gas (EGO), FAR Limited (FAR), Central Petroleum (CTP), Senex Energy (SXY)