The newest director at Blackmores has put some skin in the game as the out-of-favour vitamins company attempts a rebuild, but most analysts are urging investors to exercise much more caution. Christine Holman, who is also on the board of ASX-listed tech company WiseTech and building products group CSR, bought $134,000 of Blackmores shares on April 17 at an average price of $89.18. That is a higher price than five stockbroking houses expect Blackmores shares to be trading at in a years' time. Ms Holman joined the boardroom in mid-March. She is entitled to something of a smirk initially, with Blackmores shares climbing 6 per cent on Wednesday to $94, although they drifted lower in early trading on Thursday. Mr Blackmore, the 73-year-old major shareholder in Blackmores with a 23 per cent stake, was blunt on Tuesday about the company's prospects. He said it needed to quickly re-invigorate topline sales growth by re-engaging with powerful daigou traders and ensuring its new product development was much more exciting, to capture their interest.
Bubs Australia Ltd (BUB):
Goat milk infant formula maker Bubs has inked a heads of agreement with Chemist Warehouse to sell and promote its products at the chain’s 450 Australian and New Zealand stores. Chemist Warehouse will stock 28 Bubs products on its shelves, online and in its Tmall store from June, and will provide its sales and marketing services for a fee, linked to sales performance targets. Bubs says the deal provides a “strong gateway” to China, thanks to the high level of daigou trade through the stores. Under the agreement, fees paid for marketing and promotion will be invested in Bubs, up to a maximum of 37 million over three years.
Commonwealth Bank of Australia (CBA):
Commonwealth Bank wealth management arm Colonial First State has cut fees across its superannuation and investment platforms, said to benefit over 500,000 customers. In a notice to the market today, CBA said it was lowering costs across its FirstChoice Wholesale platform, FirstChoice Employer Super and its FirstWrap Plus platform from June this year. It said the FY20 impact on net profit was expected to be approximately $45 million. “The changes we’re making will see over 500,000 existing members benefit from lower fees,” acting executive general manager Kelly Power said. “We know lowering fees will benefit member retirement saving outcomes and we’re aiming to make our platform and investments as cost effective as possible for them.”
Fortescue Metals Group Limited (FMG):
Fortescue Metals Group has recorded a big jump in iron ore pricing on the back of global concerns about supply that eased slightly this week when rival producer Vale was cleared to reopen one of its mines in Brazil. Fortescue received an average price of $US71 a tonne ($99 a tonne) in the March quarter, a 47 per cent increase when compared to $US48-a-tonne average price received in the three-month period to the end of December. The Fortescue pricing boost outperformed the benchmark increase of 16 per cent and applied to total shipments of 38.3 million tonnes, including 3.8 million tonnes of Fortescue’s new higher grade West Pilbara Fines product, from its operations in Western Australia. Fortescue said it had suffered a 2.5 million tonne hit in shipments in the quarter as a result of Cyclone Veronica, which battered the Pilbara coast in March and also affected production for Rio Tinto and BHP.
Galaxy Resources Limited (GXY):
Shipments from lithium miner Galaxy Resources have dropped by 62 per cent in the third quarter, disrupted by disruptions to its delivery schedule. Handing down its quarterly production report, Galaxy said 15,192 dmt of lithium concentrate was shipped during the quarter, leaving final product inventory on hand of 35,100 dmt. It said the differential was down to timing differences after the miner sent large volumes in the quarter before in order to take advantage of higher prices. “Galaxy’s customers have mainly weighted their required shipment volumes to the second half of 2019. Shipments are now being finalized for the June quarter and a more normalized shipping schedule is expected for the remainder of 2019,” it said. Total mining volumes increased by 18 per cent on the previous quarter due to an increase in the stripping ratio.
Graincorp Ltd (GNC):
GrainCorp has flagged a hit to half-year earnings in its grains business thanks to international trade tensions, as investors mull a move to demerge its malt arm. That added to weaker production levels as a result of the ongoing drought. “Clearly this is a disappointing outcome in a challenging period in international grain markets, compounded by the ongoing drought conditions in Australia,” GrainCorp chief executive Mark Palmquist said. “However, we have strong risk management processes in place and continue to closely monitor market conditions.” In an update to the market this morning, GrainCorp said that over the last six weeks of its half-year reporting period to March 31, grains trading had been disrupted, adding to the negative impact of the drought, which had impacted summer crop production.
Hub24 Ltd (HUB):
HUB24 has reported a record March quarter with $800 million net inflows, up 33.3 per cent on the prior period. Funds under administration rose 55.7 per cent from the same period last year, to $11.5 billion. “Momentum was maintained despite industrywide structural change and distraction where overall organic flows from financial advisers to platforms have been softer across the industry,” the company said today. “HUB24 is benefitting from advisers transitioning clients from legacy platforms to HUB24 to utilise our market leading functionality.” It said it expected platform revenue margins for the second half to reduce by approximately 6 per cent compared to the first half.
Kogan.com Ltd (KGN):
Shares in Kogan have shot up as much as 14.4 per cent in early trade after the online retailer touted a strong third quarter and announced the launch of a Kogan-branded car retailer as well as an energy comparison site. Kogan said it had entered into a deal with struggling fleet management group Eclipx, battered a recent takeover tilt collapsed, to add a car dealership to its suite of verticals later this year. Kogan will receive fees from Eclipx Group under the arrangement. “The Kogan.com team is building an innovative, efficient, agile and resilient business,” chief executive and found Ruslan Kogan said. “We are extremely proud of our ability to help Aussies get the most in-demand products and services for less.”
National Australia Bank Ltd. (NAB):
National Australia Bank will pay out an additional $525 million to customers, blowing out the cost of its total customer-related remediation program to $1.102 billion. The majority – more than 90 per cent – of the costs come from the wealth business, and relate to non-compliant advice, excess service fees and mis-sold credit insurance. The rest comes from the banking arm and relate to incorrectly charged fees. The additional costs will knock $325 million off cash earnings and $200 million off earnings from discontinued operations for the first half of the 2019 financial year, NAB said in a statement to the Australian Securities Exchange on Thursday. The bank, whose reputation was severely damaged as a result of revelations in the Hayne royal commission, said more details would be given in the 2019 half-year results on May 2. It added the board would review NAB’s dividend settings.
Whitehaven Coal Ltd (WHC):
Whitehaven Coal investors are cheering a declaration from the Queensland Government, giving the miner’s $1 billion Winchester South Project “coordinated project” status. Queensland state development minister Cameron Dick today announced the move, touting its benefit for jobs in the Moranbah region. “Today’s declaration paves the way for whole-of-government assessment of the project by way of an environmental impact statement,” Whitehaven said in a statement. “At full capacity, the mine is targeting run-of-mine production of approximately 15 million tonnes per annum1 of predominantly high quality metallurgical coal, providing a boost to local communities and returning millions in royalties to the Queensland economy each year.”
Woodside Petroleum Limited (WPL):
Woodside Petroleum has locked in this quarter to ink a deal to allow gas from the Browse Basin gas fields to be processed in the North West Shelf LNG plant in Western Australia, despite NW Shelf partner Chevron's $US50 billion deal to buy Anadarko Petroleum. Chief financial officer Sherry Duhe dismissed suggestions that the Anadarko takeover may lessen Chevron's commitment to the NW Shelf venture, or potentially delay the critical deal to process Browse gas at the joint venture's plant near Karratha. Speaking after Woodside posted a 4 per cent increase in March quarter revenues, Ms Duhe said Chevron had been "very explicit in their support" to complete a gas processing agreement with the Browse partners this June quarter and she saw no change to that as a result of the Anadarko takeover. A preliminary accord on gas processing was struck last November. Woodside meanwhile also reported progress towards the construction of its two other projects that form the backbone of its "Horizon II" projects intended to provide expansion beyond next year's 100 million barrels output target.
(Source: AIMS)
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