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Summary
- Investors with diversified investment portfolio, wherein they invest their money in different assets provide them with cushion during the economic downturn and market volatility.
- Addition of new contracts, as observed in Worley, aids both business and topline to grow ahead.
- Magellan unveiled AASF utilising next-gen active ETF’s, which symbolises a significant evolution of Active Exchange Traded Funds in the country.
During the economic downturn, most investors opt for diversification strategy while investing in the stock market. Generally, diversification means parking one’s hard-earned money in different kinds of investment assets. Diversified investment portfolio aid investors in minimising the risk caused by market volatility and save their portfolio to an extent.
Given the backdrop, we have screened some of the popular stocks from different sectors, let us now have a look on the same with their recent updates:
Worley Limited
Worley Limited (ASX:WOR) offers projects and skills in an array of consulting and advisory services space. Their energy and resources lay emphasis on providing solution and fulfill the requirements of its clients across the long-term period.
Its raining new Contracts for Worley
Recently, the Company has secured a few new contacts that are expected to boost their expansion.
- On 4 June 2020, the Company was given a services agreement by Syncrude Canada Ltd for its Canadian hydrocarbon facilities. As per the terms of services agreement, the Company would provide construction and site maintenance services at the facilities over a term of five-year.
-On 22nd May 2020, Worley announced that Hardisty Energy Terminal Limited Partnership (J.V between Gibson Energy Inc. and U.S. Development Group) has awarded a contract to WOR, wherein, WOR would provide engineering, procurement, fabrication and construction services for a new diluent recovery unit.
-In the series of agreement, as notified on 20 May 2020, the Company also inked two global framework agreements for the term of two years with BP (BP International Limited),
where one deal is for conceptual engineering and the other one for early engineering and front-end engineering design services.
Do Read: How these Energy Stocks are performing amid COVID-19?
On the operational front, the Company has been providing services and delivering projects to support its customers. The Company continues to provide field-based services in order to enhance, develop, operate, and maintain critical infrastructure in Australia as well as across the world.
The Company’s revenue comprises of 20% from exposure to customers’ upstream and midstream oil and gas capital expenditure, 45% rom customers’ operating expenditures and 37% from the previously fewer cyclical chemicals sector. As at 31st December 2019, the company had available liquidity of $1.36 billion.
The stock of WOR closed the day’s trading session at $9.11 per share on 4th June 2020, indicating a fall of 2.463% against its previous closing price. WOR has provided shareholders with a return of 18.38% during the period of past one month.
Tabcorp Holdings Limited
Tabcorp Holdings Limited (ASX:TAH) is a gambling and entertainment entity that through business units like Wagering & Media, Gaming Services and Lotteries & Keno.
Response to COVID-19
In response to the impact of COVID-19, the Company has provided following update to the market players on 4 June 2020:
- The Company signed an agreement with its US Private Placement note holders, apart from other factors, for a waiver of interest cover covenants, as well as adjustments to leverage covenant ratios for the next two testing dates -30 June 2020 and 31 December 2020.
- On 19 May 2020, TAH also gained an agreement with regards from its bank lenders under its Syndicated Facility Agreement (SFA) for a waiver of leverage and interest cover covenants in relation to testing dates as specified above. Moreover, the Company has decided that it would not pay final dividend for FY20 as a part of securing the waivers under the SFA.
Solid Half-Year Results closed 31 December 2019
- During the 1H FY20 period, the diversified group of businesses delivered a solid result with the growth of 4.4% in revenue amounting to $2,913.9 million in an environment of soft discretionary spending.
- The Lotteries & Keno unit delivered revenues of $1,584.3 million with a rise of 12.4% and recorded EBITDA amounting to $294.9 million, up by 16.0%. These results supported the Group to achieve earnings growth.
- Due to the uncertainty caused by COVDID-19, the Company has withdrawn its earnings guidance for FY20 and FY21.
The stock of TAH closed the day’s trading session flat at $3.45 per share on 4th June 2020. TAH has provided shareholders with a return of 12.75% during the period of one month.
Magellan Financial Group Limited
Magellan Financial Group Limited (ASX:MFG) is in the business of funds management with an objective to offer international investment funds to high net worth and retail investors in ANZ region.
The Company recently rolled out AASF (Airlie Australian Share Fund) by using next generation of Active ETFs (Exchange Traded Funds), this fund commenced trading on ASX from 4th June 2020.
As per the portfolio manager, AASF is a product of collaboration amid MFG and Airlie (Airlie Funds Management). It is the fourth Active Exchange Traded Funds (ETF) introduced by Magellan and has surpassed the market of Australia by 6.6 percent net of fees across the twelve months period to 31 May this year.
As on 29th May 2020, the total funds under management of the Company stood at $98,454 million compared to the $96,973 of 30th April 2020. In the month of May 2020, the Company experienced net outflows of $288 million, which included net retail inflows of $228 million and net institutional outflows of $516 million.
Do Read: Why these stocks are under the eye of investors?
The stock of MFG closed the day’s trading session at $58.590 per share on 4th June 2020, indicating a fall of 0.745% against its previous closing price. MFG has provided shareholders with a return of 22.90% during the period of one month.
