We’ve been getting more confident about the prospects for the US economy this year and the most recent jobs data helped that idea along a bit.
The telecommunications industry in Australia is being transformed as much by the internet as any other industry. It is also an industry where investment in technology is critical for survival. Amcom Telecommunications may only be a small company by market capitalisation, but it has a clear strategy for its growth and is demonstrating a strong capability to execute. We are adding Amcom Telecommunications to the Fat Prophets Portfolio.
IOOF is one of the largest independent financial service companies in Australia. We view the recent weakness in the company’s stock price to represent an attractive investment opportunity for those investors with a 12-month or longer view. The stock has a handy 7.5% dividend yield and is trading around 13x June 2012 earnings estimates, which we consider to be depressed, thus providing the opportunity for a substantial rebound in the stock price over time.
Excluding the adjustments for the Norcast acquisition, Bradken is guiding the market to expect EBITDA growth of 25-30% this year with similar growth in net profit on a comparable basis. That’s pretty solid stuff and warrants some close attention.
Hearing implant company Cochlear reported its half year result that was severely impacted by the recall of one of its products during the period.
The RBA has left the official cash rate unchanged at 4.25%.
Notwithstanding the drawn out process of the proposed acquisition of Austar by Foxtel, we are still confident that the deal will be completed.
The release of Wesfarmers’ quarterly retail sales confirmed that deflation and price cutting remains rampant in the food sector and that Coles was still gaining ground on Woolworths.
The Federal Court’s decision to allow Optus to record free-to-air television broadcasts for its customers to view on a (minimally) delayed basis has major implications for the media and advertising industries in Australia.