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

22/07/2015 Argonaut Morning Note

    Home Stockbroking & Research Morning Notes 22/07/2015 Argonaut Morning Note
    NextPrevious

    22/07/2015 Argonaut Morning Note

    By admin | Morning Notes | 0 comment | 21 July, 2015 | 0

    Market Update & Important Indicators

    U.S. stocks fell Tuesday after weak earnings reports from International Business Machines Corp. and United Technologies Corp. dragged down the Dow Jones Industrial Average. Though the move down by the Dow appeared dramatic, traders emphasized most of the decline came from just two companies and stock-trading volumes in general were muted. IBM's stock decline of 5.7% weighed on the Dow by 66 points, while United Technologies' stock drop of 7.6% dragged down the index by 56 points. A handful of upbeat earnings from Internet and technology companies have buoyed the Nasdaq Composite, including results from Google Inc. and Netflix Inc. The US dollar declined against its peers Tuesday, as investors cashed out after a period of sharp gains in the currency.

    European shares fell Tuesday, snapping a nine-session rally, as investors turned away from Greece and toward the corporate-earnings season. As of Monday's close, Europe's benchmark index had enjoyed its longest winning streak since April 2014, largely fueled by Greece reaching a bailout agreement with its international creditors. Shares in Akzo Nobel NV rose after the group reported that net profit jumped 61% in the second quarter, as restructuring efforts continued to bear fruit. Oil and gas companies were the biggest gainers, as a result of a slight recovery in commodity prices.

    China stocks rose for the fourth straight session Tuesday, pushing the gains in the smaller Shenzhen Composite to more than 20% from this month's low and giving some investors hope that the market has bottomed out after a nasty rout. All three indexes opened lower Tuesday but turned higher by midmorning, continuing a recent trend that has seen investors buy up shares over the course of the day.

    Metals on the LME all finished lower. Gold was flat at US$1,102/oz. The AUD/USD is trading at 0.742.

    In This Issue

    Global Construction (GCS) | BUY
    There are no major surprises in GCS’s recent market update, but the FY15 earnings are lower, and the balance sheet is better than we had pencilled in. The current financial year is setting up to be a good one for GCS, with a near term pipeline of work likely to boost FY16 earnings despite the faltering WA economy. We are encouraged by GCS’s strategic diversification onto the east coast, which should help take up some of the slack that we expect in the Perth city construction market in the medium to longer term. We maintain a buy recommendation on an unchanged $0.65 valuation.

    Western Areas (WSA) | BUY
    Western Areas (WSA) reported June Q results with 6.7kt Ni in concentrate, up 8% Q-on-Q and above Argonaut’s forecast of 6.4kt. Production for FY15 totalled 25.8kt Ni, beating the upper end of guidance of 25.5kt. As expected, C1 costs declined, beating the lower end of guidance (A$2.40/lb) at A$2.19/lb for the Q and A$2.31/lb for the full year (before payability). The Company’s Board recently approved the Mill Enhancement Recovery Project which will improve recoveries by 3-5% for ~$22m capex adding ~4% to our valuation. WSA remains Argonaut’s key pick in the ASX nickel sector with steady production and lowest costs amongst producers. BUY maintained.

    Recent Contacts & Presentations

    Resolute (RSG), Rift Valley (RVY), Pacifico (PMY), Kingsgate (KCN), Troy (TRY), Tox Free Solutions (TOX), GR Engineering (GNG), Austal (ASB), 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), Pura Vida Energy NL (PVD), High Peak Royalties (HPR), Karoon Gas (KAR), Austex Oil (AOK), UIL Energy (UIL), Tlou Energy (TOU), FAR Limited (FAR), Cooper Energy (COE), Central Petroleum (CTP), Senex Enrgy (SXY)

     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