Australia - Stocks

Re: Australia - Stocks

Postby winston » Fri Nov 21, 2014 10:34 pm

Australian stocks continue to underperform this year… sector fund EWA is down 12% since September.
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Re: Australia - Stocks

Postby winston » Tue Jun 16, 2015 8:06 pm

Australian-stock fund EWA falls 17% over the past 10 months.
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Re: Australia - Stocks

Postby winston » Tue Jul 14, 2015 8:15 pm

Australian-stock fund EWA drops 20%-plus in 10 months.
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Re: Australia - Stocks

Postby winston » Sat Jul 25, 2015 7:32 pm

Why I’m Following Buffett Into This Beaten-Down Market

By Joseph Hogue

Source: Profitable Trading

http://www.thetradingreport.com/2015/07 ... wn-market/
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Re: Australia - Stocks

Postby winston » Tue Feb 23, 2016 12:49 pm

Australia: Worst Earnings Since 2009, But Less Than Feared

By Shuli Ren

Australia is two thirds of the way through its reporting season.

A lot of negative headlines are encircling Australian companies. BHP Billiton (BHP) cut its dividend for the first time in 15 years. This morning, Oil Search (OSH.Australia) swung to 2015 full-year loss after writing down its Papua New Guinea liquefied natural gas assets.

As a result, sell-side analysts have been adjusting down their earnings estimates, now seeing Australian companies’ earnings to fall 8.9% this year, versus a 5.2% decline just a month ago. The resources sector, in particular, is expected to see a 53% fall in earnings.

But not all is bad. First of all, stripping out resources, Australian companies are still expected to register 4.1% growth this year.

More encouragingly, areas that benefit from Australia’s transition from mining to consumer spending, such as housing and infrastructure spending, are expected to report 13.3% growth this year.

Mainland Chinese, for instance, have been visiting Australia, buying up properties and settling Down Under for better air and food quality.

To be sure, apart from the few bright consumer spots, overall, sales growth is not driving Australian companies. Citi Research estimates Australian companies are reporting only 1.9% sales growth in 2015.

But cost discipline is supporting earnings. The bank sees companies there report 8.1% operating profit growth (EBITDA). Operating margin was estimated to be at 13.7% last year, near par with 2007 high of 14.2%.

The ASX All Ordinaries Index fell into the red, down 0.3% today. Year-to-date, the iShares MSCI Australia ETF (EWA) fell 16.9%.

Source: Barron's Asia
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Re: Australia - Stocks

Postby winston » Wed Apr 13, 2016 2:56 pm

Credit Suisse: Investors Now Bullish On Australia; Long And Short Ideas

By Shuli Ren

Source: Barron's Asia

http://blogs.barrons.com/asiastocks/201 ... ort-ideas/
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Re: Australia - Stocks

Postby winston » Wed Apr 20, 2016 10:54 am

Australia: Credit Suisse Sees Another 15% Upside

By Shuli Ren

Are Australian stocks too expensive, trading at 16 times earnings with no future growth? The ASX 200 Index has rallied almost 10% since its mid-February low.

Credit Suisse strategist Hasan Tevfik doesn’t think so. He re-iterated today that the ASX 200 Index will hit 6000 by year-end, or another 15% upside from here.

First, Australia’s valuation is in line with other developed world. The ASX 200 Index is now valued at 16.4 times; European stocks are on average valued at 16.9 times and U.S. stocks trade at 18 times.

Second, Australia may start to look expensive because of the recent rapid rallies in commodity names. Australian miners now on average trade at a whopping 27.4 times. But without them, ASX 200 Index is at a more reasonable 15.3 times.

Third, sure, Australia offers no earnings growth this year, but it redeems with income. “The December-2016 dividend yield of 4.6% for our market is one of the highest in the world and a likely attraction for global-search-for-yield investors,” wrote Tevfik.

Source: Barron's Asia

http://blogs.barrons.com/asiastocks/201 ... 15-upside/
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Re: Australia - Stocks

Postby winston » Tue May 31, 2016 11:06 am

Do Aussie Banks Have A Sour Kiwi Milk Problem?

By Shuli Ren

New Zealand dairy farmers are set to become the next source of bad debt for Australia’s largest banks. Australian banks are already seeing a jump in stressed loans from New Zealand’s dairy farmers.

In the last half year, National Australia Bank (NAB.Australia) recognized $522 million of impaired dairy loans, while stressed agriculture loans at Westpac Banking Corp. (WBC.Australia) jumped by almost 4 percentage points to 7.8%.


Source: Barron's Asia

http://blogs.barrons.com/asiastocks/201 ... k-problem/
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Re: Australia - Stocks

Postby winston » Thu Jun 23, 2016 11:51 am

Fortescue Metals Soars As It Continues To Shed Debt

By Shuli Ren

Australian iron ore miner Fortescue Metals (FMG.Australia) soared 5.5% in Sydney after saying it will pay off another $500 million of debt, helping it save $21 million in interest payments.

For the current fiscal year, Fortescue Metals has repaid $2.9 billion debt, saving $186 million in interest expenses.

Fortescue Metals has $2.6 billion debt outstanding and needs to spend 3.1 years of pre-tax profit to repay its debt. As a result, it has a non-investment BB grade with negative outlook at the S&P Ratings.

Fortescue Metals has been a spectacular stock this year, soaring 76% as China’s iron ore prices and its balance sheet improve.

Source: Barron's Asia
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Re: Australia - Stocks

Postby winston » Thu Jun 30, 2016 10:32 am

What Would Warren Buffett Buy In Australia?

By Shuli Ren

Warren Buffett‘s Berkshire Hathaway made its first purchase in Australia just over a year ago, buying 3.7% stake in Insurance Australia Group (IAG.Australia). This purchase was not bad. IAG returned 3% over the last year, among Buffett’s best non-US stocks over the period.

What else would Buffett buy in Australia? He has a focus on value, he tends to buy lower beta companies with little financial leverage. He also likes to buy into companies that have a history of solid profitability and growth. Of course, Buffett likes large companies.

Credit Suisse‘s Australia strategist Hasan Tevfik maintains a stock portfolio, mimicking Buffett’s style. He calls it Bufferoo. Tevfik re-balances “Bufferoo” once a year, on June 30.

Tevfik has 6 stocks in his Bufferoo: Adelaide Brighton (ABC.Australia), Caltex Australia (CTX.Australia), Flight Centre (FLT.Australia), Insurance Australia, Lend Lease (LLC.Australia) and Perpetual Limited (PPT.Australia).

Collectively, these 6 stocks trade at 14.2 times earnings, cheaper than ASX 200′s 16.8 times. Meanwhile, they generate 17.3% return on equity, a good 9 percentage points higher than the ASX 200.

Source: Barron's Asia
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