The market is up 37. The SFE Futures were up 16 this morning.
Wall St. closed up 30. New closing highs for the year. Dow up 111 at best and unchanged at worst. Oil price took a breather down $2.27 to $71.55 as did the Aussie dollar, down to 83.44c.
Consolidated Media Holdings (CMJ) sells its stake in Seek (SEK) — CMJ sells its 26.7% stake in SEK for $440.6m at 505c a share to institutional investors. The stock (conveniently) jumped 15.3% or 71c to 535c yesterday on its results. CMJ still owns a 25% stake in Foxtel and has a 50% interest in Premier Media Group. CMJ is considered a takeover target after Kerry Stokes’ Seven Network (SEV) built up a 19.9% stake in CMJ. The question is now what it will do with the $440.6m. CMJ up 10%. Seek largely unchanged.
- Westfield Group (WDC) — In line — maintains guidance. Payout ratio dropped to 70-75% from 100% in FY10, but this was not unexpected. No capital raising. Up 2.3% to 1274c.
- Lihir Gold Limited (LGL) — Not too many nasties. Guidance unchanged. Upgrade to resources. Expect a relief rally that there was nothing worse. LGL up 7% to 274c.
- Transurban Group (TCL) — In line — up 3c to 418c.
- Asciano Group (AIO) — In line but cautious outlook. Down 2.3%.
- Transfield Services (TSE) — Good — see below. Up 9.2% to 380c.
- Pacific Brands (PBG) — In line to slightly lower than expected — NPAT of minus $234m after $380m of significant items written off. Sales down 5.5%. Debt reduced by 39% to $452m. Guidance — H1 to be down H2 to be up. Patersons has a BUY. PBG down 9.4% to 119.5c.
- Healthscope (HSP) — Capital Raising — no details yet. In a Trading Halt after announcing its result — it is planning a capital raising to raise $140m via an underwritten placement and will use the funds for hospital expansion, provide funds for recent acquisitions and possibly make some more.
- Transfield Services (TSE) — Result today is at the high end of guidance. Patersons analyst highlights is a turnaround situation that is likely to keep going — new management — balance sheet has been recapitalized — now within banking covenants — not exposed to FX translation of debt. Gearing down to less than 50%. Poised for a turnaround. Waiting for a re-rating. On 11.5x — 25% discount to peers.
- Bigger stocks Ex Dividend today — QBE (62c), STO (22c), DOW (16c), UGL (35c)
- Bigger stocks Ex Dividend tomorrow (last day to buy for the dividend) — ASX (74.5c), PPT (60c), BEN (15c), IAG (6c)
- Spotless (SPT) has successfully completed its $71m institutional placement saying it was well supported.
- Cape Lambert (CFE) says the trade sale process for Lady Annie continues. Patersons recently wrote research on it with a sum of the parts valuation of 108c. Now 44.5c.
The Dow Futures are down 13 at midday.
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