Updates from Three Diversified Stocks – NSR, CKF, ASB

An investment in diversified stocks protects investors against a financial crisis as different stocks react differently to the same economic event, either reducing the risks or increasing it. Some may have zero or little negative impact of the macro factors, while some may have positive impact. Moreover, the returns of your shareholdings depend upon how vulnerable your portfolio is to the macro factors in the business environment.

Here we shall discuss three diversified stocks listed on ASX and discuss the latest developments with these stocks.

National Storage REIT (ASX:NSR)

Being one of Australasia’s largest supplier of self-storage, National Storage REIT engages in providing the self-storage solutions to residential as well as commercial customers through its more than 170 storage centres located across Australia and New Zealand.

The offerings of the NSR includes the following:

• Self-Storage
• Business Storage
• Climate Controlled Wine Storage
• Vehicle Storage
• Vehicle and Trailer Hire
• Packaging
• Insurance
• Other Value-Added Services

National Storage REIT was in the news lately in relation to the article in the Australian Financial Review entitled National Storage REIT receives bid proposal.

• The Company advised that discussions are underway with GAW Capital Partners (GAW) in relation to its indicative proposal to acquire 100% of the issued stapled securities of NSR;
• No certainty that the discussions with GAW will lead to a binding proposal or a proposal that the Board of NSR will recommend to NSR securityholders.

Earlier there was media speculation about a possible takeover proposal for National Storage, regarding which the Company advised that it had obtained a confidential nonbinding indicative proposal from Gaw Capital Partners for hundred percent of the issued stapled securities of the company.

The Company is committed to maintaining quality, convenience and service, while also ensuring secure, clean and modern premises and a wide range of packaging materials on offer along with efficient and cost-effective storage.

NSR has made significant progress over the years and had acquired 40 storage centres indicating the growth of the Company’s brand into every state and territory in Australia.

Moreover, the Company’s business has also expanded in New Zealand, especially continued this growth into Hamilton and Wellington, with its pursuance of acquisition opportunities across the regions as part of its active growth strategy.

At the market close on 14 February 2020, the NSR stock settled in the green zone at a price of $2.260. During the day’s trade, the stock increased by 2.262% from it’s last close, with a market capitalisation of $1.74 billion.

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Collins Foods Limited (ASX:CKF)

Collins Foods Limited is a

• KFC and Taco Bell franchisee in Australia,
• KFC franchisee in the Netherlands and Germany, and
• The owner of Sizzler restaurants in Australia and the franchisor for Sizzler in Asia.

The Company directs its collective efforts towards establishing Collins Foods as a leading restaurant holding company in the coming times.

Collins Foods recently announced the settlement of the Federal Court proceedings commenced by Taco Bill Mexican Restaurants Pty Ltd in Australia, which was agreed between the Taco Bell Brand, Collins Foods and Taco Bill Mexican Restaurants, subject to certain conditions including the filing of final orders with the Federal Court of Australia.

As an effect of the above, it was advised that Collins Foods shall continue to open and operate Taco Bell restaurants in Victoria; however, the confirmation regarding completion is still awaited.

At the market close on 14 February 2020, the CKF stock settled at a price of $9.750. During the day’s trade, the stock decreased by 0.612% from its last close, with a market capitalisation of $1.14 billion.

Austal Limited (ASX:ASB)

Lately, Austal Limited announced that Austal USA had delivered its 11^th Littoral Combat Ship (future USS Kansas City (LCS 22)) to the US Navy at the company’s shipyard in Mobile, Alabama, which is the first Independence-class LCS to be delivered by Austal USA in 2020.

ASB is Australia based international shipbuilder and contractor that is involved in devising, building and maintaining a few of the planet's most sophisticated commercial and vessels related to defence sector.

Being Australian region’s biggest defence exporter and the foremost ASX-listed shipbuilding entity, Austal contains;

• Industry’s top shipyards in the nations like
• Australia,
• the US,
• Philippines and
• Service centres are situated around the globe, with the Middle East region.

Austal CEO David Singleton believes that the latest LCS provided by Austal’s USA shipyard;

• develops upon the ASB’s solid record in the last few years;
• keeps on impressing, with quality, cost and productivity enhancements gained with every new vessel;
• is the eleventh of the nineteenth Independence-class LCS presently contracted.

Moreover, the Company believes that the increased deployment of the ships around the world is adding up to the great capability to the U.S. Navy.

A new over-the-horizon missile system onto the USS Gabrielle Giffords (LCS 10) was integrated by Austal USA and General Dynamics Mission Systems teams recently prior to her deployment and the ship, along with USS Montgomery (LCS 8), is currently deployed and meeting U.S. Navy operational requirements in South East Asia.

Further, the enhancements in both fronts of production and post-delivery are taking shape in the LCS program.

LCS 22, Source: Company's Report

According to the Company, the Independence-class LCS is a fast, agile, focused-mission platform designed for operation in near-shore environments yet capable of open-ocean operation and currently,

• Five Independence-class Littoral Combat Ships (small surface combatants) are under various stages of construction at Austal USA including the future USS Oakland (LCS 24) and USS Mobile (LCS 26) that are preparing for sea trials;
• Assembly is underway on the future USS Savannah (LCS 28) and USS Canberra (LCS 30);
• Modules for the future USS Santa Barbara (LCS 32) are under construction in Austal’s module manufacturing facility (MMF);
• Three more LCS are under contract and scheduled for production, through to LCS 38;
• Moreover, Austal USA is under contract to build 14 Expeditionary Fast Transport vessels (EPF) for the U.S. Navy;
• The Company has delivered 11 EPFs, while an additional two are in various stages of construction at the Mobile, Alabama shipyard.

The 127 mt long trimaran has been created to beat asymmetric “anti-access” dangers like mines, quiet diesel submarines and fast surface craft, while effectively incorporated new technology and ability to aid existing and upcoming U.S. Navy mission ability in any operating situation.

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Over the years, Austal has grown to become the largest aluminium shipbuilder in the world and is largest defence exporter of Australia. ASB is an exclusive overseas-owned prime contractor, which designs and constructs both along with sustaining ships in the US Navy space.

At the market close on 14 February 2020, the ASB stock settled at a price of $4.010. During the day’s trade, the stock decreased by 2.433% compared to its prior close, with a market capitalisation of $1.47 billion.

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