Investors are flocking to Australian equity markets reaching record highs in 2020 amidst natural deadly bushfires, coronavirus concerns and earnings downgrade. The easing of global scenario in terms of the Phase 1 US-China trade deal and subsided US-Iran war have provided a cushion to investors’ sentiments.
Investors are donning their analysis cap and are on look-out for attractive stocks ahead of reporting season. They are adopting varied investment strategies depending on the return expectations and risk appetite. Fundamental and technical analysis plays a crucial role in cherry-picking potentially profitable investments.
Quarterly updates are closely monitored to gauge the company’s performance viz-a-viz industrial trends, evaluate the past performance and access the future outlook. Financial performance and dividend pay-out and history are carefully looked at. Business updates in terms of potential impact of coronavirus, bushfire and global concerns are considered as well.
ASX is flooded with business updates across the sectors in terms of management changes. With an array of domestic and global factors at play, businesses are struggling to earn decent earnings, expand geographically, launch new products and bring in innovations amidst mounting costs. Some of them are strategising to bring in crucial management change to bring in right set of people with sound expertise to help the business flourish in the challenging and complex business environment.
Looking at management updates become one of the important factors’ investors look at while making key stock investment decision making. Undoubtedly, sound management aligned with a clear vision, goal and mission positions the company better placed to grow in near future. Understanding the management quality is essential to gauge business future profitability.
Management’s expertise, work-experience, qualification, length of tenure coupled with their corporate actions such as director’s interest and stock-buy backs reflect a lot on their quality.
Let us look at some trending management updates released on ASX on 24 January 2020-
Prospa Group Limited (ASX:PGL) Soars on New CFO Appointment
Australia’s leading online lender to small companies, Prospa Group updated the market regarding the key management update and confirmed its earnings guidance. The stock soared 1.75%, trading at $2.035 on 24 January 2020 (at 2:20 PM AEDT).
Mr Peter Loosmore’s appointment as the company’s interim Chief Financial Officer effective 28 January 2020, replacing an expert who managed company’s 2019 ASX listing - Mr Edoardo Bigazzi who is leaving the company to pursue other opportunities.
Prospa is confident of Mr Loosmore’s strong financial services experience and robust financial portfolio management skills, while the company is eying its entry into the next phase of its evolution, executing its vision of advancing financial aid and helping ANZ small businesses to grow.
The company is on the look-out for a permanent replacement for Mr Bigazzi is in process.
Prospa has confirmed its earlier H1FY20 earnings guidance as follows:
Revenue of $75 million, EBITDA of $4 million and Originations of $298.2 million.
While it retains its FY20 guidance as follows:
Originations of between $626 million and $640 million, and Revenue of at least $150 million.
Source: Company’s Report
Genworth Mortgage lnsurance Australia Limited (ASX:GMA) updated on MD/CEO appointment
Provider of lenders mortgage insurance and risk and capital management solutions in the Australian residential mortgage market, Genworth Mortgage lnsurance updated the market on the appointment of company’s Managing Director and Chief Executive Officer - Ms. Pauline Blight-Johnston effective 2 March 2020, bringing in key expertise from KPMG which she joined October 2019. This marks an end to the successful global executive search.
The new CEO replaces Mr. Duncan West, acting CEO since beginning of the year; to continue serving as as an independent, non-executive director.
As CEO, Ms Blight-Johnston take-home represent $900k per annum a year including superannuation.
Along with a long-term incentive payment, she may also be eligible for a short-term incentive payment at a target level of 80 % of her total fixed remuneration and a maximum of 200 %.
Genworth Chairman, Mr. Ian MacDonald said “Pauline has over 25 years’ experience in life insurance and wealth management, at a range of professional and financial services firms. Pauline brings to Genworth strong financial and actuarial acumen as well as proven capability driving strategy and effectively leading people.”
Market players may keep a tab on the upcoming FY19 results of the company on 5 February 2020.
GMA traded at $3.790, up 0.27% on 24 January 2020 (at 2:20 PM AEDT).
Domain Holdings Australia Limited (ASX:DHG) announced Board Changes
Real estate media and technology services player engaged in the AU property space, Domain Holdings unleashed key board changes on 24 January 2020, announcing the appointment of Lizzie Young and Hugh Marks as Non-Executive Directors, effective 1 February 2020.
The company has appointed key personnel from media and entertainment player, Nine Entertainment Co. Holdings Limited (ASX:NEC).
Nine's MD of commercial partnerships, Lizzie Young while Nine’s CEO Hugh Marks have been appointed as Domain’s non-executive and non-independent directors, replacing Gail Hambly, who was a senior executive with Fairfax Media Limited prior to its merger with Nine and Patrick Allaway, who is a Director on the Nine Board.
Market players may keep a tab on the upcoming 2020 half-year results to the Australian Securities Exchange on 20 February 2020.
DHG traded at $3.885, down 0.39% on 24 January 2020 (at 2:20 PM AEDT).