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
Fortescue result leads mining titans and ASX higher
Mining sector buoys ASX, InvoCare, Altium slump
The ASX200 (ASX: XJO) was once again buoyed by the materials sector with Fortescue’s (ASX: FMG) strong earnings result sending the stock 6.6% higher and the sector up 2.7%.
Both financials and consumer discretionary remain under pressure, down 0.7 and 1.0% as reporting season comes to an end.
It was all about FMG today, with the company more than doubling its final dividend to $2.11 per share, representing a 10% yield on its own.
The company has been a clear beneficiary of the surging iron ore price with revenue 74% higher and net profit more than doubling to US$10 billion.
Shares were up 6.6%, but it is unlikely to be smooth sailing with the iron ore price slumping and FMG’s lower quality product likely to be the first hit as Brazilian supply returns.
E-commerce furniture retailer Temple and Webster (ASX: TPW) is among one the few such companies to broach their pandemic highs with the stock up 10.6% today after reporting an 85% increase in revenue.
Earnings jumped 141% and most importantly the group made a profit, albeit of just $14 million on revenue of over $300 million.
The group’s more diverse product range has seen sales growth continue at 49% into August.
Crown’s nothing result, Altium lags, funerals pay dividends for InvoCare
Technology software designer Altium (ASX: ALU) was the latest tech darling stock to feel the brunt of earnings season, falling 14.3% on a weaker than expected result.
The company reported revenue growth of just 6.4% but a tripling of profit to US$107 million.
Recurring revenue growth, or subscription based, was 29% stronger and now represents two third of their total. The group has struggled in a highly competitive environment.
Crown (ASX: CWN) barely moved as revenue was confirmed to have fallen over 30% in the financial year, resulting in a $261 million loss.
The dividend remains on hold whilst the multiple Royal Commissions are underway but takeover offers are clearly in the wings once the air has cleared.
Funeral home operator InvoCare (ASX: IVC) which ultimately profits from the investment of prepaid funeral expenses, jumped 8.7% after reporting a profit recovery, hitting $44 million in the second half.
Operating revenue was 13% higher, with earnings up 31% benefitting from a $38 million gain on their investment portfolio.
Quality reigns as bond yields fall, Zoom falls on slowing growth
Markets pivoted back towards quality on Monday with the Nasdaq moving 0.9% higher behind a 3% increase in Apple (NYSE: AAPL) following the Fed’s non-decision over the weekend.
The US 10 year bond remains below 1.3% which is supporting long-term growth companies but particular tech and consumer discretionary.
On the other hand, the energy and insurance sectors were weaker as Tropical Storm Ida spread across the Southern States.
In bad news for the economic recovery, Europe is set to ban non-essential travel from the US as COVID-19 cases surge.
Shares in Robinhood Markets (NYSE: HOOD) fell around 7% after the SEC suggested they ban the profitable Payment for Order Flow revenue source that has been key to the low-cost trading platform.
Affirm Holdings (NASDAQ: AFRM) closed 46% higher after specific of their BNPL deal with Amazon were released whilst Zoom (NASDAQ:ZM) is down close to 10% in after market trade.
