At the time of writing on 26th November 2019 (AEST 1: 42PM), the index S&P/ASX200 is trading at 6,781.8 with a rise of 50.4 points. This has been supported by some of listed companies on ASX, which have provided a support to the index. In the below article, we will be looking five companies, which have had a noticeable presence on the index and market as well.
Caltex Australia Limited (ASX: CTX)
Caltex Australia Limited (ASX: CTX) is engaged in the purchase, refining, distribution as well as marketing of petroleum products. The company is having a presence in the operation of convenience stores as well.
Takeover Proposal for Caltex
- The company through a release dated 26th November 2019 announced that Alimentation Couche-Tard Inc has given an unsolicited, conditional, confidential, non-binding and indicative proposal to the company for acquiring all shares in Caltex with the help of a scheme of arrangement in consideration of cash price amounting to A$34.50 per share minus any dividends declared by the company.
- Caltex added that the proposal would allow the company to pay a special dividend or other distribution. However, the proposal is subject to numerous conditions, which include due diligence, organising necessary funding for the transaction, no material asset sales, divestments or similar transactions, obtaining approval of Board of the Foreign Investment Review, as well as a unanimous recommendation by the Board of the company and the approval of the ACT Board.
- Moreover, the Board of the company is currently considering the proposal, which includes obtaining advice from its financial as well as legal advisers.
Outlook for Convenience Retail
The company expects Convenience Retail EBIT of between $190 million ? $210 million, reflecting a rise of $20 million - $40 million as compared to 1H FY19, augmented by an improvement in fuel margin. The company stated that the total CR fuels sales volumes are anticipated to be circa 4.8 billion litres in 2019.
The stock of CTX closed at a price of $33.790 per share, with a rise of 13.427% as on 26th November 2019. In the span of last three months and six months, the stock of CTX has delivered returns of 15.24% and 12.20%, respectively.
IPH Limited (ASX: IPH)
IPH Limited (ASX: IPH) provides intellectual property services with a market capitalisation of A$1.78 billion as on 26th November 2019.
Key Personnel’s Commentary
- At 2019 Annual General Meeting day, the Chairman of the company addressed the shareholders and stated that IPH has delivered a strong financial result, and acquisition of Xenith IP Group has been an important step forward in the growth strategy of the company.
- This acquisition leaves a major milestone in the continued implementation of the company’s vision to be the leading IP group in secondary IP markets as well as adjacent areas of IP.
- In addition, Managing Director of the company communicated to shareholders and pointed out that IPH has achieved double-digit growth across its key financial metrics over the prior year and delivered underlying EBITDA amounting to $89.7 million reflecting a rise of 21%.
- Four months of acquisitive growth from the AJ Park business in comparison to the prior year; foreign currency rate changes; as well as organic growth from its existing businesses, mainly in Asia has been the main contributors to the superior results.
The stock of IPH closed at a price of $8.760 per share, with a rise of 5.415% as on 26th November 2019. In the span of last three months and six months, the stock of IPH has delivered returns of -9.18% and 21.14%, respectively.
Bravura Solutions Limited (ASX: BVS)
Bravura Solutions Limited (ASX: BVS) is in the development, licensing as well as maintenance of highly specialized administration and management software applications. The company recently announced that Wellington Management Group LLP and its related bodies corporate has made a change to their substantial holdings in BVS on 14th November 2019 and the current voting power stands at 10.65% as compared to the previous voting power of 12.12%.
Acquisition of FinoComp
- At the end of October 2019, the company published a release stating the company’s intention to acquire an Australian software company FinoComp.
- The company is to pay consideration for the acquisition of A$25 million. The software of FinoComp adds functionality to the company as well as provides cross-sell opportunities to existing clients of Bravura and new Wealth Management clients.
- When it comes to financial side of FinoComp, revenues witnessed a rise of 27% from FY18 to FY19 and is anticipated to continue to grow at this rate for the upcoming three years from a forecast of A$6.8 million in FY20.
- The acquisition is expected to be accretive to EPS from FY 20 and will be funded from internal accruals.
Also Read: Acquisition proposal to GBST.
The stock of BVS closed at a price of $4.350 per share, with a rise of 11.825% as on 26th November 2019. In the span of last three months and six months, the stock of BVS has delivered returns of -13.56% and -34.40%, respectively.
Out Of Home media company, oOH!Media Limited (ASX: OML) offers advertisers the capability to engage people and brands throughout one of the leading and most varied Out Of Home portfolios which are location-based throughout ANZ.
Rejection to Media Claims
- The company through a release dated 18th November 2019 has rejected a media report, wherein it was claimed that the company may be subjected to a Management buyout.
- The key managerial personnel of the company added that the article has no basis and the company has not received any proposal in relation to Management buyout and OML is not involved in any discussion regarding a potential management buyout and the company has nothing to disclose.
- In another update, the company announced that Perennial Value Management Limited has become an initial substantial holder in the company on 6th November 2019 with the voting power of 5.30%.
Also Read: A look on the company’s revised FY19 guidance.
The stock of OML closed at a price of $2.960 per share, with a rise of 4.225% as on 26th November 2019. In the span of last three months and six months, the stock of OML has delivered returns of -2.41% and -30.39%, respectively.
Regis Resources Limited (ASX: RRL)
Regis Resources Limited (ASX: RRL) is in the production of gold from the Duketon Gold Project. Also, it engages in the development, evaluation and exploration of gold projects in the Eastern Goldfields located in Western Australia.
Highlights of 2019 AGM
- On 26th November 2019, the company conducted its 2019 Annual General Meeting, wherein, the Chairman James Mactier stated that FY19 has been a year of significant achievement as well as change for the company.
- Despite being slightly down on last year, the company reported net profit after tax amounting to $163.1 million, which was a commendable achievement.
- It reported record revenue from increased gold production as well as a higher realised gold price, which was offset by increased costs mainly because of increased strip ratios and industry-wide cost pressures.
The stock of RRL closed at a price of $4.620 per share, with a rise of 1.762% as on 26th November 2019. In the span of last three months and six months, the stock of RRL has delivered returns of -14.66% and -14.66% respectively.
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