Month: February 2019

Santos STO announced 2018 full year results with NPAT beating consensus.

FY18 NPAT of US$727m and the final dividend has increased to $0.062.

We expect to see Santos continue to increase their capital spending over the next 2 – 3 years with the focus being on the Cooper Basin.

Buying pressure will likely abate within equities, and oil prices over the coming weeks. We look to buy STO, WPL, OSH & ORG on the next technical low.

Wesfarmers WES 1H19 earnings beat market consensus, with EBIT of $1.62bn and underlying net profit increasing by 10% on the same time last year.

The company announced a special dividend of $1.00 per share.

Bunnings sales grow by 5% and underlying earnings in the division increased by 7%.

Wesfarmers trades on a fair valuation at 17x earnings and a 5.2% forward yield. The stock provides investors optionality around an acquisition given the groups’ strong balance sheet.

Some caution needs to be exercised, should we see a weaker retail environment in the coming months.

We’re buyers of WES on the next pullback.

Oceana Gold {OGC.ASX} has reported 2018 underlying EBITDA of US$364m and company cash reserves increased to US$108m.

After buying OGC at lower levels last week, we’ve now taken profit at $4.70+

Crown Resorts {CWN.ASX} reported 1H19 earnings and the result was negatively impacted by increased expense ratio and lower revenue from VIP turnover.

The A$400m buyback announced as at the FY18 result, has a further $270m to go.

CWN  remains under Algo buy conditions and with the stock trading on  a 5% forward yield and low single digit EPS growth, we continue to see value.