AGL Energy Limited (AGL):
The standard boiler plate disclaimers associated with Minerals Council of Australia’s costings of new coal-fired power plants are of more relevance than usual. First, the Minerals Council is using the costings to argue that you, the taxpayer, should fund the construction of a coal-fired power station and that the government could even buy the power to make the numbers work better. Second, the costings for a coal-fired plant are so much lower than previous costings – and the cost estimates for wind and solar power so much higher – as to make the assumptions behind the modelling look heroic. The Finkel review, AGL Energy and Bloomberg New Energy Finance show higher costs for coal plant and lower costs for wind and solar plant.
AMP Limited (AMP):
AMP, the nation’s largest financial services group, is banning property buyers from using their mortgage as a ‘‘piggy bank’’ for personal spending, escalating lenders’ response to regulatory pressure to rein in ballooning household debt. AMP, the nation’s largest financial services group, is banning property buyers from using their mortgage as a ‘‘piggy bank’’ for personal spending, escalating lenders’ response to regulatory pressure to rein in ballooning household debt.It follows Commonwealth Bank of Australia’s decision to crack down on issuing credit cards to property borrowers, also a response to borrowers using equity in their property to release cash. Credit tightening by the nation’s largest bank, credit card issuer and financial services conglomerate is expected to reverberate across an industry under growing pressure from the Reserve Bank of Australia and prudential regulators. Both have been market trendsetters in the clampdown on interest-only mortgage rates that has been taken up across the industry.
Bapcor Limited (BAP); Super Retail Group Limited (SUL):
Car parts retailer Repco has triggered another discount war in Australia’s highly competitive automotive parts sector with a blanket 20 per cent off promotion at all of its 300-plus stores in Australia for members of any road motorist organisation such as the NRMA or RACV. The step up in pricing pressure could not have come at a worse time for auto parts retailers, who are bracing for the arrival of online retail juggernaut Amazon, which is denting sales at US bricks and mortar auto parts retailers after expanding its range earlier this year. Repco, which is owned by United States automotive giant Genuine Parts, is a fierce competitor to ASX-listed rivals Bapcor, which owns Autobarn and Autopro, and Super Retail Group, which owns the Supercheap Auto chain. Bapcor chief executive Darryl Abotomey said on Thursday that Repco was again being very aggressive, but there were many in the industry who believed their prices in retail stores were higher in the first place.
Cimic Group Limited (CIM); Macmahon Holdings Limited (MAH):
CIMIC has offloaded its major stake in Macmahon Holdings after its failed hostile takeover of the smaller contractor left it exposed to dilution from a white-knight deal. In a block trade run by broker Hartleys on Thursday, CIMIC sold its 23.6 per cent stake in Macmahon at 16.5¢ per share to raise $46.8 million. It comes just six days before a Macmahon shareholder vote on a transaction that would deliver Indonesia’s PT Amman Mineral Nusa Tenggara a 44.3 per cent stake in the company. It is understood the deal appeared likely to secure shareholder approval on July 12 even if CIMIC voted against it, which would have left CIMIC holding just 13.2 per cent of Macmahon.
Coca-Cola Amatil (CCL):
Coca-Cola Amatil has suffered its second blow in two months, losing a major contract to supply soft drinks and water to fast-growing Domino’s Pizza Enterprises to rival bottler Pepsi/ Schweppes. The loss of the multimillion dollar contract comes after Woolworths refused last month to stock Coke’s biggest new product in 10 years, Coca-Cola No Sugar. Deutsche Bank analyst Michael Simotas said the Domino’s contract loss was another negative for CCA, struggling to grow earnings amid falling soft drink sales and price pressure in bottled water. Coca-Cola Amatil has suffered its second blow in two months, losing a major contract to supply carbonated soft drinks and water to fastgrowing Domino’s Pizza Enterprises to rival bottler Pepsi/Schweppes. Domino’s shares, which have fallen 20 per cent this calendar year, rose 43¢ to $51.92 on Thursday, while CCA shares fell 3.4 per cent to $8.91.
Flight Centre Travel Group Limited (FLT):
Investors took profits in Flight Centre after several analysts lowered their recommendations on the stock, saying it looked overpriced following Wednesday’s 10 per cent surge. The company triggered the jump in the shares after saying full-year profit would come in between $325 million and $330 million, or at the top end of its guidance range, and announcing a cost-cutting program. But the share gains were exacerbated by a number of short sellers being caught out, Citi said. ‘‘It’s been interesting to see that as the stock gained momentum in the last couple of months, the shorts had actually been increasing too, to be the top shorted stock in the ASX200 by per cent of free float [27 per cent],’’ the broker’s analysts told clients yesterday.
(Source: AIMS)
The standard boiler plate disclaimers associated with Minerals Council of Australia’s costings of new coal-fired power plants are of more relevance than usual. First, the Minerals Council is using the costings to argue that you, the taxpayer, should fund the construction of a coal-fired power station and that the government could even buy the power to make the numbers work better. Second, the costings for a coal-fired plant are so much lower than previous costings – and the cost estimates for wind and solar power so much higher – as to make the assumptions behind the modelling look heroic. The Finkel review, AGL Energy and Bloomberg New Energy Finance show higher costs for coal plant and lower costs for wind and solar plant.
AMP Limited (AMP):
AMP, the nation’s largest financial services group, is banning property buyers from using their mortgage as a ‘‘piggy bank’’ for personal spending, escalating lenders’ response to regulatory pressure to rein in ballooning household debt. AMP, the nation’s largest financial services group, is banning property buyers from using their mortgage as a ‘‘piggy bank’’ for personal spending, escalating lenders’ response to regulatory pressure to rein in ballooning household debt.It follows Commonwealth Bank of Australia’s decision to crack down on issuing credit cards to property borrowers, also a response to borrowers using equity in their property to release cash. Credit tightening by the nation’s largest bank, credit card issuer and financial services conglomerate is expected to reverberate across an industry under growing pressure from the Reserve Bank of Australia and prudential regulators. Both have been market trendsetters in the clampdown on interest-only mortgage rates that has been taken up across the industry.
Bapcor Limited (BAP); Super Retail Group Limited (SUL):
Car parts retailer Repco has triggered another discount war in Australia’s highly competitive automotive parts sector with a blanket 20 per cent off promotion at all of its 300-plus stores in Australia for members of any road motorist organisation such as the NRMA or RACV. The step up in pricing pressure could not have come at a worse time for auto parts retailers, who are bracing for the arrival of online retail juggernaut Amazon, which is denting sales at US bricks and mortar auto parts retailers after expanding its range earlier this year. Repco, which is owned by United States automotive giant Genuine Parts, is a fierce competitor to ASX-listed rivals Bapcor, which owns Autobarn and Autopro, and Super Retail Group, which owns the Supercheap Auto chain. Bapcor chief executive Darryl Abotomey said on Thursday that Repco was again being very aggressive, but there were many in the industry who believed their prices in retail stores were higher in the first place.
Cimic Group Limited (CIM); Macmahon Holdings Limited (MAH):
CIMIC has offloaded its major stake in Macmahon Holdings after its failed hostile takeover of the smaller contractor left it exposed to dilution from a white-knight deal. In a block trade run by broker Hartleys on Thursday, CIMIC sold its 23.6 per cent stake in Macmahon at 16.5¢ per share to raise $46.8 million. It comes just six days before a Macmahon shareholder vote on a transaction that would deliver Indonesia’s PT Amman Mineral Nusa Tenggara a 44.3 per cent stake in the company. It is understood the deal appeared likely to secure shareholder approval on July 12 even if CIMIC voted against it, which would have left CIMIC holding just 13.2 per cent of Macmahon.
Coca-Cola Amatil (CCL):
Coca-Cola Amatil has suffered its second blow in two months, losing a major contract to supply soft drinks and water to fast-growing Domino’s Pizza Enterprises to rival bottler Pepsi/ Schweppes. The loss of the multimillion dollar contract comes after Woolworths refused last month to stock Coke’s biggest new product in 10 years, Coca-Cola No Sugar. Deutsche Bank analyst Michael Simotas said the Domino’s contract loss was another negative for CCA, struggling to grow earnings amid falling soft drink sales and price pressure in bottled water. Coca-Cola Amatil has suffered its second blow in two months, losing a major contract to supply carbonated soft drinks and water to fastgrowing Domino’s Pizza Enterprises to rival bottler Pepsi/Schweppes. Domino’s shares, which have fallen 20 per cent this calendar year, rose 43¢ to $51.92 on Thursday, while CCA shares fell 3.4 per cent to $8.91.
Flight Centre Travel Group Limited (FLT):
Investors took profits in Flight Centre after several analysts lowered their recommendations on the stock, saying it looked overpriced following Wednesday’s 10 per cent surge. The company triggered the jump in the shares after saying full-year profit would come in between $325 million and $330 million, or at the top end of its guidance range, and announcing a cost-cutting program. But the share gains were exacerbated by a number of short sellers being caught out, Citi said. ‘‘It’s been interesting to see that as the stock gained momentum in the last couple of months, the shorts had actually been increasing too, to be the top shorted stock in the ASX200 by per cent of free float [27 per cent],’’ the broker’s analysts told clients yesterday.
(Source: AIMS)
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