Afterpay Touch Group Ltd (APT):
Fears of a crackdown on the booming buy now, pay later industry have eased after the corporate regulator told a Senate committee that a light regulatory touch through the proposed expansion of its product intervention powers was a sensible first step. ASIC senior executive leader Michael Saadat told the committee, which is inquiring into the extension of credit to vulnerable Australians, that the reform would enable it to directly address any consumer harm by forcing providers to adopt more stringent safeguards.
Amcor Limited (AMC):
Packaging company Amcor has pushed back the closing date of its takeover of American rival Bemis by a quarter, citing regulatory logjam due to the partial US government shutdown. The US$5.25 billion ($7.4bn) all-stock deal was initially expected to close in the first quarter of 2019, Amcor had said in August last year. But it has now been pushed to the second quarter. The company had secured antitrust clearances and other regulatory consents in all other jurisdictions besides the US, the statement added. Amcor swooped on Bemis last year as packaging firms jostled to buy growth with acquisitions.
AMP Limited (AMP):
Shares in wealth management major AMP have tanked 10 per cent at the open after it warned its full-year profit is expected to be wiped out compared to 2017. The announcement came on the back of a string of customer compensation hits and losses relating to businesses it has since sold. The comments came as AMP also warned it would take an additional pre-tax charge of $200 million in its upcoming full year results for remediation costs relating to its troubled financial advice arm.
INVESTSMART GROUP LIMITED (INV):
InvestSMART has revised down its annual growth target, citing deteriorating market conditions since September. The wealth adviser had previously projected annual Funds Management Income annual growth of 300 per cent for the 2019 financial year, but has said it is unlikely to meet that target on Friday. The fund had $110 million under management at December 31, what represents growth of 168 per cent compared to the previous corresponding period. The company reported FUM of $104.4 million at June 30 last year. INV last traded at 13c.
Myob Group Ltd (MYO):
MYOB seems to be living up to the “go shop” provisions offered by KKR in KKR’s $2 billion takeover bid that allows the Australian accounting software group to hunt for another buyer. DataRoom understands that while KKR is still in front in the race to buy the assets, some interested other parties are taking a close look at the company’s financials. The most obvious strategic buyer for MYOB is British firm the Sage Group, which is thought to have shown an interest in the company before. It is expected that MYOB’s adviser, UBS, would have been knocking on the door of Sage and probably Silicone Valley players, especially the private equity funds that specialise in technology and software investment. The “go shop” clause was put on the table by KKR as part of its negotiations to get MYOB to agree to the lower offer of $3.40 per share.
RESMED (RMD):
ResMed chief Mick Farrell says he is focused on the sleep device maker’s five-year strategy and not daily share price moves as the company’s stock sunk after its quarterly result missed analyst expectations. The Australian and US-listed company (RMD) reported a net profit after tax of $US133.4 million for the second quarter of fiscal 2019, which CLSA’s David Stanton said was 3.3 per cent below analyst consensus. ResMed also reported an 8 per cent increase in revenue to $US651.1m. Mr Stanton also highlighted in a quick take on ResMed’s results that its quarterly reported a lower than expected gross margin and a greater than expected interest expense.
Westpac Banking Corp (WBC):
Westpac couldn’t have picked a more challenging time to assess a sale of its scandal-prone financial planning division. As the Hayne royal commission final report looms large, the bank is said to have encountered difficulty generating interest in the business, even though it was offering up its own customers through a long-term distribution agreement. The bank is also understood to be keenly assessing options in the burgeoning robo-advice industry. Westpac — the only major bank that has committed to retaining the lion’s share of its wealth business — had 803 salaried and aligned planners as at September 30. Any big shift into robo-advice would significantly reduce planner headcount.
Yowie Group Ltd (YOW):
Foil-wrapped chocolate maker Yowie is having a tough time breaking into the US market, reporting a drop in sales for the second quarter thanks to increasing competition in the “global surprise inside” sector. In a note to the market, it said its sales were $4.07 million, down 25 per cent on the previous corresponding period due to significant competitive activity. It forecast second half revenues in line with the prior half and said sales growth was its top priority. YOW shares down 5.56 per cent to 8.5c.
(Source: AIMS)
Fears of a crackdown on the booming buy now, pay later industry have eased after the corporate regulator told a Senate committee that a light regulatory touch through the proposed expansion of its product intervention powers was a sensible first step. ASIC senior executive leader Michael Saadat told the committee, which is inquiring into the extension of credit to vulnerable Australians, that the reform would enable it to directly address any consumer harm by forcing providers to adopt more stringent safeguards.
Amcor Limited (AMC):
Packaging company Amcor has pushed back the closing date of its takeover of American rival Bemis by a quarter, citing regulatory logjam due to the partial US government shutdown. The US$5.25 billion ($7.4bn) all-stock deal was initially expected to close in the first quarter of 2019, Amcor had said in August last year. But it has now been pushed to the second quarter. The company had secured antitrust clearances and other regulatory consents in all other jurisdictions besides the US, the statement added. Amcor swooped on Bemis last year as packaging firms jostled to buy growth with acquisitions.
AMP Limited (AMP):
Shares in wealth management major AMP have tanked 10 per cent at the open after it warned its full-year profit is expected to be wiped out compared to 2017. The announcement came on the back of a string of customer compensation hits and losses relating to businesses it has since sold. The comments came as AMP also warned it would take an additional pre-tax charge of $200 million in its upcoming full year results for remediation costs relating to its troubled financial advice arm.
INVESTSMART GROUP LIMITED (INV):
InvestSMART has revised down its annual growth target, citing deteriorating market conditions since September. The wealth adviser had previously projected annual Funds Management Income annual growth of 300 per cent for the 2019 financial year, but has said it is unlikely to meet that target on Friday. The fund had $110 million under management at December 31, what represents growth of 168 per cent compared to the previous corresponding period. The company reported FUM of $104.4 million at June 30 last year. INV last traded at 13c.
Myob Group Ltd (MYO):
MYOB seems to be living up to the “go shop” provisions offered by KKR in KKR’s $2 billion takeover bid that allows the Australian accounting software group to hunt for another buyer. DataRoom understands that while KKR is still in front in the race to buy the assets, some interested other parties are taking a close look at the company’s financials. The most obvious strategic buyer for MYOB is British firm the Sage Group, which is thought to have shown an interest in the company before. It is expected that MYOB’s adviser, UBS, would have been knocking on the door of Sage and probably Silicone Valley players, especially the private equity funds that specialise in technology and software investment. The “go shop” clause was put on the table by KKR as part of its negotiations to get MYOB to agree to the lower offer of $3.40 per share.
RESMED (RMD):
ResMed chief Mick Farrell says he is focused on the sleep device maker’s five-year strategy and not daily share price moves as the company’s stock sunk after its quarterly result missed analyst expectations. The Australian and US-listed company (RMD) reported a net profit after tax of $US133.4 million for the second quarter of fiscal 2019, which CLSA’s David Stanton said was 3.3 per cent below analyst consensus. ResMed also reported an 8 per cent increase in revenue to $US651.1m. Mr Stanton also highlighted in a quick take on ResMed’s results that its quarterly reported a lower than expected gross margin and a greater than expected interest expense.
Westpac Banking Corp (WBC):
Westpac couldn’t have picked a more challenging time to assess a sale of its scandal-prone financial planning division. As the Hayne royal commission final report looms large, the bank is said to have encountered difficulty generating interest in the business, even though it was offering up its own customers through a long-term distribution agreement. The bank is also understood to be keenly assessing options in the burgeoning robo-advice industry. Westpac — the only major bank that has committed to retaining the lion’s share of its wealth business — had 803 salaried and aligned planners as at September 30. Any big shift into robo-advice would significantly reduce planner headcount.
Yowie Group Ltd (YOW):
Foil-wrapped chocolate maker Yowie is having a tough time breaking into the US market, reporting a drop in sales for the second quarter thanks to increasing competition in the “global surprise inside” sector. In a note to the market, it said its sales were $4.07 million, down 25 per cent on the previous corresponding period due to significant competitive activity. It forecast second half revenues in line with the prior half and said sales growth was its top priority. YOW shares down 5.56 per cent to 8.5c.
(Source: AIMS)
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