Mike shares
IPL: FY results out today, HEPS came in the middle of guidance. Dividend up, coming in at R7.10 so overall decent. Proposed unbundling has been approved by the board and will be concluded in Q4 2018.Share price is up 1.67% to R201.50 and think medium term is a buy opportunity. Will also benefit from any strength in the ZAR.
BHP Billiton: Results came out this morning, missed slightly on estimates, but announced record dividend payout of $0.63 per share, amounts to R9 at current USDZAR FX rate. Reiterated that the proceeds of the IS shale assets will be returned to shareholders once the sale has been completed. Sale was $10.8 bil, don’t think the tax will be much ( est 0.1mil ) so most of it will be returned. The sale will be completed by the end of OCT 2018, and will say how they will return it, either via share buyback or cash payment ( dividend ), I think the market will prefer the latter. Was down around 3% this morning and recovered almost half of this back. Expensive at current levels, but still think you can buy any weakness here. Obviously the GBPZAR has moved quite a bit that needs to be factored in. Target of 18pounds still comes to mind.
Shoprite: Urggh, what a disappointment, usually my preferred retailer, but trading statement was a massive disappointment, and results today came in at the lower end of the trading statement guidance. Currently down 6.5% at R198, and will need to review this one. Maybe some bottom pickers out there?
Above is the most important company results out today, so what else are we looking at in the market?
Few shares is Last Day to trade today: L2D,MIX,MND,MNP,QLT,TWR ( anyone notice how close MND came to touching R400 yesterday? Is it time to to take some off the table? )
Did anyone buy the dip on NPN? If not, shame on you, gave you a nice opportunity I think. Yeah sure Tencent slowed down for the first time in 5 years ( or something like that ), but still a massive powerhouse in my opinion. Some downgrades coming I think, but still way below most target levels.
Rhamaphoria rally is gone. So where to from now? Well stick to the names of IPL,BVT? Retailers still a sell on any strength think. Names like TRU,CLS comes to mind?
Are we seeing a bit of short covering going on in BID? Keeping an eye on this one for possible short
BAW, just buy it :-) ( We did, REMEMBER THIS IS JUST AN OPINION AND NOT ADVICE )
BLU: Getting killed once again on the back of Cell C results. Haven’t read it yet, heard something about a rights issue coming up?
Rand is stronger today, every day is like a seesaw with this one.
Obviously the market wants this trade wars going on to end now, miners will fly. Seeing more and more CEO commenting how Europe will be the main beneficiary if this trade wars continue between US and China?
Nothing else too important I’m seeing today, let me know if I've missed something dramatically?
Thanks
Michael Porter
BHP Billiton: Results came out this morning, missed slightly on estimates, but announced record dividend payout of $0.63 per share, amounts to R9 at current USDZAR FX rate. Reiterated that the proceeds of the IS shale assets will be returned to shareholders once the sale has been completed. Sale was $10.8 bil, don’t think the tax will be much ( est 0.1mil ) so most of it will be returned. The sale will be completed by the end of OCT 2018, and will say how they will return it, either via share buyback or cash payment ( dividend ), I think the market will prefer the latter. Was down around 3% this morning and recovered almost half of this back. Expensive at current levels, but still think you can buy any weakness here. Obviously the GBPZAR has moved quite a bit that needs to be factored in. Target of 18pounds still comes to mind.
Shoprite: Urggh, what a disappointment, usually my preferred retailer, but trading statement was a massive disappointment, and results today came in at the lower end of the trading statement guidance. Currently down 6.5% at R198, and will need to review this one. Maybe some bottom pickers out there?
Above is the most important company results out today, so what else are we looking at in the market?
Few shares is Last Day to trade today: L2D,MIX,MND,MNP,QLT,TWR ( anyone notice how close MND came to touching R400 yesterday? Is it time to to take some off the table? )
Did anyone buy the dip on NPN? If not, shame on you, gave you a nice opportunity I think. Yeah sure Tencent slowed down for the first time in 5 years ( or something like that ), but still a massive powerhouse in my opinion. Some downgrades coming I think, but still way below most target levels.
Rhamaphoria rally is gone. So where to from now? Well stick to the names of IPL,BVT? Retailers still a sell on any strength think. Names like TRU,CLS comes to mind?
Are we seeing a bit of short covering going on in BID? Keeping an eye on this one for possible short
BAW, just buy it :-) ( We did, REMEMBER THIS IS JUST AN OPINION AND NOT ADVICE )
BLU: Getting killed once again on the back of Cell C results. Haven’t read it yet, heard something about a rights issue coming up?
Rand is stronger today, every day is like a seesaw with this one.
Obviously the market wants this trade wars going on to end now, miners will fly. Seeing more and more CEO commenting how Europe will be the main beneficiary if this trade wars continue between US and China?
Nothing else too important I’m seeing today, let me know if I've missed something dramatically?
Thanks
Michael Porter
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