Blackmores Limited (BKL):
Blackmores back on earth from $220 high Blackmores has come back to the global pack with a thud. The $220 share price it reached in January 2016 seems like a dream now. The company is trading on a forward-looking price-earnings multiple of between 22 and 23 times, which puts it around the same level as most of its peers in China and Asia, and in some cases lower. It is still regarded by most investors as well run with strong brands, but it has lost the lustre of being the Australian wonder company able to deliver windfall gains for shareholders with good timing. Three years ago it was trading at $22. The daigou traders, that opaque group of Chinese entrepreneurs who drove an extraordinary demand spike in a vitamins buy-up frenzy in late 2014 and 2015 in Australia, have quietened down, victims themselves of shifting Chinese e-commerce regulations and over-exuberance.
Crown Resorts Limited (CWN):
The Victorian government opted to approve casino mogul James Packer’s ambition to develop a $1.7 billion hotel and apartment complex without modifying the proposal for Melbourne’s tallest tower. The enormous 90-storey project, with a tower rising to 323 metres on Southbank, has been made exempt from normal planning rules after it was deemed to be of state significance. On Tuesday, the government released documents outlining the final stages of Planning Minister Richard Wynne’s decision to approve the joint venture between Crown and private developer Schiavello on a Southbank site opposite the casino.
Insurance Australia Group Ltd (IAG) & Suncorp Group Ltd (SUN):
Two of Australia’s largest insurers, Suncorp and IAG, will take a combined $330 million hit from February’s Sydney hailstorm after fielding more than 30,000 claims from affected customers. Two of Australia’s largest insurers will take a combined $330 million hit from February’s northern Sydney hailstorm after fielding more than 30,000 claims from affected customers. Suncorp, which owns AAMI and GIO, said that it had received 11,000 claims and expected the financial impact of the storm to be $170 million. Most of the claims were for home and car damage.
Rio Tinto Limited (RIO):
The Australian Federal Police has joined law enforcement agencies around the world in the investigation into Rio Tinto’s Guinea payments scandal. The agencies are investigating claims that a $US10.5 million payment had allegedly been made to a political adviser named Francois de Combret, who is said to have provided advice and assistance to Rio in the company’s bid to gain and retain control of the Simandou iron ore prospect. The AFP said yesterday it was investigating after Rio approached the agency in November over the claims. The Australian Federal Police have started an investigation into Rio Tinto’s Guinea payments scandal, after the miner came forward to the agency in November.
Stockland Corporation Ltd (SGP):
The stamp duty cuts for first home buyers made by Victoria will further strengthen the earnings profiles of Australia’s largest listed residential developer, Stockland, a new analysis by investment bank UBS shows. Analysts Grant McCasker and James Druce have a ‘‘buy’’ recommendation on Stockland and said the latest changes by the state will give a boost to the developer. Half of its net deposits on residential sales come from first home buyers, with Victoria representing about 30-40 per cent of that. ‘‘These initiatives give us further confidence that land sales will continue to remain strong – close to historic highs – and price growth will be supported,’’ the analysts said in a note to clients.
Suncorp Group Ltd (SUN):
Insurer Suncorp is furthering its interest in ‘‘micro-insurance’’, teaming with Spanish start-up Traity, which uses blockchain to insure consumers’ peer-to-peer online transactions with strangers via a chatbot named Kevin. Juan Cartagena, the co-founder and chief executive of Traity, wrote that the start-up was working with the Queensland-based insurer in a February post on the start-up’s website. ‘‘Kevin is a project in collaboration with Suncorp, the Australian financial services conglomerate with whom we have built a partnership which includes Kevin and another product we will launch in the next few months,’’ Mr Cartagena wrote. The platform, which is being trialled at Kevinsured.com, insures online transactions on sites such as AirBnB, Gumtree and eBay from theft, fraud or scams. It works by making an assessment of the reputation of the buyer and the seller to identify fakes, and if both pass, it creates a time stamp on blockchain that shows they have agreed to the transaction.
(Source: AIMS)
Blackmores back on earth from $220 high Blackmores has come back to the global pack with a thud. The $220 share price it reached in January 2016 seems like a dream now. The company is trading on a forward-looking price-earnings multiple of between 22 and 23 times, which puts it around the same level as most of its peers in China and Asia, and in some cases lower. It is still regarded by most investors as well run with strong brands, but it has lost the lustre of being the Australian wonder company able to deliver windfall gains for shareholders with good timing. Three years ago it was trading at $22. The daigou traders, that opaque group of Chinese entrepreneurs who drove an extraordinary demand spike in a vitamins buy-up frenzy in late 2014 and 2015 in Australia, have quietened down, victims themselves of shifting Chinese e-commerce regulations and over-exuberance.
Crown Resorts Limited (CWN):
The Victorian government opted to approve casino mogul James Packer’s ambition to develop a $1.7 billion hotel and apartment complex without modifying the proposal for Melbourne’s tallest tower. The enormous 90-storey project, with a tower rising to 323 metres on Southbank, has been made exempt from normal planning rules after it was deemed to be of state significance. On Tuesday, the government released documents outlining the final stages of Planning Minister Richard Wynne’s decision to approve the joint venture between Crown and private developer Schiavello on a Southbank site opposite the casino.
Insurance Australia Group Ltd (IAG) & Suncorp Group Ltd (SUN):
Two of Australia’s largest insurers, Suncorp and IAG, will take a combined $330 million hit from February’s Sydney hailstorm after fielding more than 30,000 claims from affected customers. Two of Australia’s largest insurers will take a combined $330 million hit from February’s northern Sydney hailstorm after fielding more than 30,000 claims from affected customers. Suncorp, which owns AAMI and GIO, said that it had received 11,000 claims and expected the financial impact of the storm to be $170 million. Most of the claims were for home and car damage.
Rio Tinto Limited (RIO):
The Australian Federal Police has joined law enforcement agencies around the world in the investigation into Rio Tinto’s Guinea payments scandal. The agencies are investigating claims that a $US10.5 million payment had allegedly been made to a political adviser named Francois de Combret, who is said to have provided advice and assistance to Rio in the company’s bid to gain and retain control of the Simandou iron ore prospect. The AFP said yesterday it was investigating after Rio approached the agency in November over the claims. The Australian Federal Police have started an investigation into Rio Tinto’s Guinea payments scandal, after the miner came forward to the agency in November.
Stockland Corporation Ltd (SGP):
The stamp duty cuts for first home buyers made by Victoria will further strengthen the earnings profiles of Australia’s largest listed residential developer, Stockland, a new analysis by investment bank UBS shows. Analysts Grant McCasker and James Druce have a ‘‘buy’’ recommendation on Stockland and said the latest changes by the state will give a boost to the developer. Half of its net deposits on residential sales come from first home buyers, with Victoria representing about 30-40 per cent of that. ‘‘These initiatives give us further confidence that land sales will continue to remain strong – close to historic highs – and price growth will be supported,’’ the analysts said in a note to clients.
Suncorp Group Ltd (SUN):
Insurer Suncorp is furthering its interest in ‘‘micro-insurance’’, teaming with Spanish start-up Traity, which uses blockchain to insure consumers’ peer-to-peer online transactions with strangers via a chatbot named Kevin. Juan Cartagena, the co-founder and chief executive of Traity, wrote that the start-up was working with the Queensland-based insurer in a February post on the start-up’s website. ‘‘Kevin is a project in collaboration with Suncorp, the Australian financial services conglomerate with whom we have built a partnership which includes Kevin and another product we will launch in the next few months,’’ Mr Cartagena wrote. The platform, which is being trialled at Kevinsured.com, insures online transactions on sites such as AirBnB, Gumtree and eBay from theft, fraud or scams. It works by making an assessment of the reputation of the buyer and the seller to identify fakes, and if both pass, it creates a time stamp on blockchain that shows they have agreed to the transaction.
(Source: AIMS)
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