Six Diversified Stocks under Radar - SSM, AVH, CBA, MQG, ANZ and NST

  • Dec 20, 2019 AEDT
  • Team Kalkine
Six Diversified Stocks under Radar - SSM, AVH, CBA, MQG, ANZ and NST

Why do investors consider having diversified stocks?

The most crucial principle of investing is to have a variety of stocks in the portfolio. This would imply the investors investing their money in different types of stocks, so that they are not dependent on a single investment for return.

If one wants to maximise his/her return and play safe, one must consider investing in the stocks from different sectors. Through diversification, the investors can reduce their risk on their investments by allocating their resources in different investment classes and sectors.

If an investor invests all his money in one particular sector, and it does not give good return, the investor loses all his money.

Let us get a better insight on the 6 diversified stocks under discussion.

Service Stream Limited (ASX: SSM)

Service Stream Limited is the provider of network services to the telecommunications and utility sector. The company has an excess of 2,200 employees and a pool of over 3,000 specialist contractors.

D4C consortium secured 10-year Sydney Water contract

On 19 December 2019, the company announced that the consortium to which its 100% owned subsidiary company Comdain Infrastructure Pty Ltd is a participant, has been given a 10-year agreement by Sydney Water Corporation. The consortium would form an unincorporated joint venture to be known as Delivering for Customers (D4C) Joint Venture.

Under the joint Venture Comdain Infrastructure Pty Ltd (with a 30 per cent participating interest), John Holland Pty Ltd (30 per cent), Lend Lease Services Pty Ltd (30 per cent) and WSP Australia Pty Ltd (10 per cent).

The group comprises of a six-month mobilising period starting from January 2020, followed by 2 five-year service delivery terms with the review of the performance at the end of initial five years period.

D4C’s revenue from service delivery is expected to be in the order of $200 million per annum

To know about the company’s OMMA contract with NBN click here

Stock Performance

The stock of SSM settled at $2.680 on 20 December 2019, lower by 1.107 per cent from its previous closing price. The company has approx. $407.48 million outstanding shares and a market cap of $1.1 billion. The stock has generated a negative return of 1.50 per cent for the last six months and positive return of 55.30 per cent on year-to-date basis.

AVITA Medical Limited (ASX: AVH)

AVITA Medical Limited is a medicine company. The company’s technology platform provides solutions to various skin related medical conditions.

Change in Substantial Holdings

On 13 December 2019, AVH notified on the change in the substantial holding of The Bank of New York Mellon Corporation with effect from 11 December 2019, and after the change it has 525,860,479 person’s votes with 24.83 % voting power.

Stock Performance

The stock of AVH closed at $0.650 on ASX, on 20 December 2019, going up by 2.362 per cent from its previous closing price. The company has approx. $2.12 billion outstanding shares and a market cap of $1.34 billion. The stock has generated a positive return of 64.94 per cent for the last six months and positive return of 703.80 per cent on year-to-date basis.

Commonwealth Bank of Australia (ASX: CBA)

The company provides financial services to clients of retail, business, institutional banking etc. Recently, CBA and the Australian Taxation Office (ATO) have agreed to solve all outstanding GST or Goods and Service Tax issues.

Dividend Distribution

On 17 December 2019, CBA announced an update on the declared 100 per cent franked dividend of $0.836 for the period closed 15 March next year. The Ex payment and Payment date for the dividend is 5 March next year and 16 March 2020, respectively.

Stock Performance

The stock of CBA settled at $81.250 on ASX, on 20 December 2019, declining by 0.587 per cent from its previous closing price. The company has approx. $1.77 billion outstanding shares and a market cap of $144.68 billion. The stock has generated a positive return of 0.69 per cent for the last six months and positive return of 15.16 per cent on year-to-date basis.

Macquarie Group Limited (ASX: MQG)

Macquarie Group Limited provides financial services solutions such as asset management, banking, advisory, debt and capital solutions.

Dividend Distribution

On 18 December 2019, the company announced an update to a 40 per cent franked and 60 per cent unfranked dividend of $1.041 for period ended 15 March next year. The Ex payment and Payment date for the dividend is 5 March and 16 March next year, respectively.

Stock Performance

The stock of MQG closed the trading session at $140.250 on ASX, on 20 December 2019, moving up by 0.171 per cent from its previous closing price. The company has approx. $354.38 million outstanding shares and a market cap of $49.62 billion. The stock has generated a positive return of 11.67 per cent for the last six months and positive return of 31.03 per cent on year-to-date basis.

In order to view the company’s financial performance for 1H2020 click here

Australia and New Zealand Banking Group Limited (ASX: ANZ)

Australia and New Zealand Banking Group Limited is an international bank engaged in providing a wide range of banking and financial services. The company operates in New Zealand, Australia and various other countries in APAC region.

Appointment of New ANZ NZ CEO

On 18 December 2019, the company announced that Antonia Watson has been appointed as its Chief Executive Officer. Antonia Watson would also serve as a director for ANZ NZ. With this, she became the first New Zealand woman to lead the organisation.

The company would soon initiate the process of recruitment of a new Managing Director for Business and Retail Banking. In the meanwhile, the Business Banking and Retail division would be headed by Ben Kelleher.

Stock Performance

The stock of ANZ last traded at $24.800 on ASX, on 20 December 2019, dipping by 0.362 per cent from its previous closing price. The company has approx. $2.83 billion outstanding shares and a market cap of $70.55 billion. The stock has generated a negative return of 13.18 per cent for the last six months and positive return of 4.32 per cent on year-to-date basis.

Northern Star Resources Limited (ASX: NST)

Northern Star Resources Limited is a leading producer of gold with Tier 1 World class projects situated in the North American and Australian regions.

Completion of $765 million fully underwritten institutional placement

On 18 December 2019, the company has announced the completion of its $765 million fully underwritten institutional placement of 85 million shares at the issue price of $9.00 per new share.

The placement was oversubscribed, which showed the strong support from the investors and the new Northern Star-Saracen joint venture.

The proceeds from the placement would be used to fund the acquisition of all of the shares in Kalgoorlie Lake View Pty Ltd from Newmont. Newmont holds a 50 per cent stake in Kalgoorlie Consolidated Gold Mines Pty Ltd (KGCM). Kalgoorlie Consolidated Gold Mines is a fifty-fifty Joint Venture between Newmont and Saracen Mineral Holdings.

The acquisition will be immediately accretive to Northern Star on an EV/Reserve, EV/Resource, P/NAV basis and earnings per share in its first full financial year of ownership i.e. financial year 2021.

Stock Performance

The stock of NST settled at $10.700 on ASX, on 20 December 2019, high by 2.49 per cent from its previous closing price. The company has approx. 648.94 million outstanding shares and a market cap of $6.77 billion. The stock has generated a negative return of 10.23 per cent for the last six months and positive return of 12.99 per cent on year-to-date basis.


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