Cameron Blanks from Pacific Equity Partners speaks to James Dunn at The Inside Network’s Alternatives Symposium in Melbourne on looking through the cycles and catalysing growth. The Inside Adviser
Duncan Farley from RBC Bluebay Asset Management speaks to Giselle Roux at The Inside Network’s Alternatives Symposium in Melbourne on macro trends that matter more. The Inside Adviser
ASX pares losses, Healius (ASX:HLS) delivers
Volatility continues, ASX pares losses, Healius (ASX:HLS) delivers, AMP (ASX:AMP) sold off, positive morning ahead
The ASX 200 (ASX:XJO) pared early losses to finish down just 0.3% on Wednesday, with oil prices the biggest detractor.
The oil sector fell 1.8% as oil prices pushed lower on concern of weaker demand.
Woodside Petroleum Ltd (ASX:WPL) reported quarterly production had fallen 2% on 2019 levels but revenue had fallen a further 42% as sales prices collapsed; shares fell 1.6%.
Santos Ltd (ASX:STO) fell a similar amount with production up 12% for the year to date by revenue falling 18% to $797 million for the first three quarters.
The outlook for oil remains reliant on a return of normal people and economic movement which may be some time given the worsening European second wave.
AMP Ltd (ASX:AMP) fell 5.5% despite reporting generally positive results from their core Australian businesses.
The wealth management division saw net outflows of $1.95 billion, but inflows of $6 billion taking assets under management to $121.4 billion.
Similarly, AMP Capital saw $1.1 billion in redemptions, AUM falling 0.4%.
The company remains under the close watch of a number of private equity firms.
Healius pathology division booming, AGM season pressuring boards, Mydeal.com.au jumps 84% on IPO
Pathology business Healius (ASX:HLS) jumped 9.3% leading the market after reporting strong growth in revenue, hitting $492.5 million for the quarter compared to $419 million in 2019.
The company has been processing a large share of COVID-19 tests, with management highlighted the growth was unlikely to be sustained; seemingly this didn’t faze investors on the day.
Earnings for the quarter more than doubled to $81.2 million.
Magellan Financial Group (ASX:MFG) faced the virtual pressure of shareholders, with many questioning the on balance sheet investments in investment banking firm Barrenjoey, $155 million, and settlement system, Finclear, $20 million.
I’m struggling to understand the value in this move and whether it is an appropriate use of shareholder’s capital, particularly given Magellan world leading profit margins of close to 55%.
The latest IPO off the blocks was no-frills e-commerce retailer Mydeal.com.au (ASX:MYD) which jumped 84% on debut.
Whilst a positive for shareholders, this tends to suggest the price could have been higher and less dilutive for existing investors.
US markets up on strength in financials, Tesla (NASDAQ:TSLA) beats expectations, stimulus ‘just about there’
The S&P 500 outperformed the tech heavy Nasdaq, adding 0.5% on Thursday compared to -0.1%.
The cyclicals were the biggest beneficiaries with the banking sector adding 2% across the board on an improving jobs outlook and signs the $1.9 trillion stimulus package may be passed.
Electric vehicle maker Tesla (NASDAQ:TSLA) was the highlight of the day, reporting its fifth consecutive quarterly profit of $874 million, well ahead of consensus expectations of $4593 million as Elon Musk continues to defy expectations.
Revenue was also 40% higher with management confirming their goal to deliver 500k cars this year; the share price is up 400% in 2020.
It’s becoming clearer where the global recovery is really being driven from, with consumer goods group Unilever (LON:ULVR), the maker of Ben & Jerry’s and a number of cleaning products, reporting a return to sales growth, up 4.4%, driven primarily by emerging markets China and India.
