Invocare

Posted on | by Leon Hinde

InvoCare is under Algo Engine buy conditions.

In mid-April IVC announced up to $250m equity raising
at $10.40/share.

April revenue was down 13% and we’re seeing costs higher than
anticipated. Improvement in trading conditions should occur as the partial easing of restrictions take place.

We assume 2020 earnings will be down 10% and see a recovery into 2021 & 2022.

We’ll revisit IVC if it trades back below $10.00

Cochlear – Buy

Posted on | by Leon Hinde

Cochlear recently completed an $850mn equity raise via an institutional placement at $140 per share. The capital raise now removes any balance sheet concerns.

Following the placement, we estimate COH will have total liquidity of
$1.0bn+  with little in the way of debt maturities until 2022.

The pathway back to elective surgery appears to be improving and we, therefore, see the current price range as an opportunity to accumulate COH shares.

 

Macquarie Bank

Posted on | by Leon Hinde

Macquarie Group is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.

MQG reported a 24% fall in second-half net profit compared to the same period a year ago, to $1.27bn. Second-half impairment charges doubled to $900m.

Macquarie’s full year net income was down 8% to $2.7bn. We remain cautious on the deteriorating earnings and doubtful debt charges across the industry over the next six months.