Energy
Paladin Energy (PDN) Expansion plans approved but on a smaller size 30/06/2009 20:31
PDN is moving ahead with Stage 3 expansion of its Langer Heinrich uranium mine but at a slightly smaller size...
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PDN is moving ahead with Stage 3 expansion of its Langer Heinrich uranium mine but at a slightly smaller size due to water supply restrictions. Production capacity will be increased to 5.2Mlb per annum U3O8 at a capital cost of US$71M and a target completion date of September 2010. This compares to the original plans of 6Mlb per annum requiring US$174M in capex. We have maintained our REDUCE recommendation on both short- and long-term time horizons.
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Roc Oil (ROC) Opportunistic equity raising; we recommend shareholders REDUCE holding 29/06/2009 17:05
ROC has successfully completed an institutional share placement, raising ~A$68.8M through a fully underwritten placement of around 88M new ordinary...
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ROC has successfully completed an institutional share placement, raising ~A$68.8M through a fully underwritten placement of around 88M new ordinary shares at an issue price of A$0.78/share, determined following a bookbuild. ROC has also announced a Share Purchase Plan (SPP), which is available to eligible ROC shareholders. The raised funds have significantly reduced our forecast debt levels; as a result, our DCF valuation has risen. Our 12-month price target now stands at $0.70/share. REDUCE.
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Paper & Forest Products Paper and Forestry Products – FY09 Sector Preview 03/07/2009 11:08
This report offers a preview of the 1H09 results for Amcor (AMC) and PaperlinX (PPX) in the Paper and Packaging...
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This report offers a preview of the 1H09 results for Amcor (AMC) and PaperlinX (PPX) in the Paper and Packaging sector, and Gunns (GNS) in the Forestry sector. An overview of the main issues facing these companies is included.
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Gunns Limited (GNS) Gunns MISfires on plantation earnings 01/07/2009 16:24
GNS announced that it has achieved FY09 MIS sales of $45.5M across its suite of walnut and plantation forestry investment...
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GNS announced that it has achieved FY09 MIS sales of $45.5M across its suite of walnut and plantation forestry investment projects. This is well down on the $122M achieved in FY08. Whilst we had forecast a steep decline in FY09 sales, the result has underperformed even our bearish expectations. With terms yet to be finalised regarding the Bell Bay Pulp Mill development and clear risks to short-term earnings, we maintain our 12-month REDUCE and long-term SELL recommendations on the stock.
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Corporate Express (CXP) Stronger than expected US sales prompt upgrade to sales forecasts 02/07/2009 16:41
Given the stronger than expected like-for-like sale figures reported by Staples (USA), we have revised our forecasts for Australian like-for-like...
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Given the stronger than expected like-for-like sale figures reported by Staples (USA), we have revised our forecasts for Australian like-for-like sales. We believe our previous forecasts for sales declines were too aggressive and are now forecasting sales to decline by 6% in FY10 and be flat for FY11. We have left our forecasts for margins unchanged. Following these changes, our price target is $3.82, and we retain our NEUTRAL recommendation on both a 12-month and a long-term outlook.
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Qantas Airways (QAN) May traffic data and aircraft deferral 30/06/2009 18:16
QAN has released May traffic statistics. We also update our model following QAN's announcement that it has delayed and cancelled...
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QAN has released May traffic statistics. We also update our model following QAN's announcement that it has delayed and cancelled a number of aircraft orders. We have made some minor adjustments to our cashflow forecasts to reflect the capital expenditure timing. Our revenue and EBITDA forecasts are largely unchanged. The timing of cashflow and the cancellation of aircraft orders lift our 12-month price target from $1.98 to $2.18. We retain our NEUTRAL recommendations.
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more Industrials reports Consumer Discretionary
Casinos & Gaming FY09 Result: Gaming Sector Preview 02/07/2009 11:16
With the FY09 reporting season approaching, we offer an overview of the challenges and opportunities facing the Gaming Sector as...
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With the FY09 reporting season approaching, we offer an overview of the challenges and opportunities facing the Gaming Sector as well as an insight into our thinking with regard to the likely performance of the key stocks in the sector. The Aegis gaming sector universe of coverage consists of ALL, CWN, TAH and TTS.
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David Jones (DJS) Delivering growth through the cycle 30/06/2009 16:37
DJS has upgraded its FY09 NPAT guidance from a range of 0%-5% to 8%-12% growth. This upgrade has been the...
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DJS has upgraded its FY09 NPAT guidance from a range of 0%-5% to 8%-12% growth. This upgrade has been the result of much improved sales conditions over May and June, both of which delivered positive like-for-like sales growth over the pcp. We maintain our Neutral 12-month view and our long-term ADD recommendation and expect greater detail regarding the sales performance to be provided at the 4Q09 sales update in August.
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Elders Limited (ELD) Short-term maturities extended; equity raising seems imminent 30/06/2009 14:40
ELD has formalised its previously announced in-principle agreement with lenders to extend its short-dated facilities and change the timing of...
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ELD has formalised its previously announced in-principle agreement with lenders to extend its short-dated facilities and change the timing of certain covenant tests until 30 September 2009. Given our view that an equity raising is imminent, we see no reason to be overweight the stock until such time as a raising has been finalised and a better gauge of ELD’s financial position can be obtained. REDUCE.
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Health Care
iSOFT (ISF) Initiating coverage: A healthcare IT supplier emerging from the pupa 02/07/2009 22:31
iSOFT Group Limited (ASX: ISF) supplies IT solutions to healthcare providers such as hospitals, pharmacists, and GPs. The company is...
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iSOFT Group Limited (ASX: ISF) supplies IT solutions to healthcare providers such as hospitals, pharmacists, and GPs. The company is in transition from a junior IT company propelled by acquisitions to a large global player. Accordingly, we would like to see its progress on the key metrics of organic growth, EBITDA margins and cashflow, and the FY09 result will be crucial in this regard. We initiate coverage with NEUTRAL recommendations on 12-month and long-term horizons.
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more Health Care reports Financials
APN European Retail Property Group (AEZ) Initiation of coverage: Survival hangs in the balance 02/07/2009 14:56
AEZ is a listed retail REIT with shopping centre assets across Europe. AEZ is currently trading in a distressed state...
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AEZ is a listed retail REIT with shopping centre assets across Europe. AEZ is currently trading in a distressed state with an over-leveraged balance sheet and valuations and earnings under pressure. The nominally low security price does not give AEZ manoeuvring space to call on fresh capital, leaving asset sales and other restructuring initiatives as the only likely remedial measures. Aegis is initiating coverage with a SELL recommendation for both the 12-month and long-term recommendations.
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Suncorp-Metway (SUN) New CEO provides a refreshing change 01/07/2009 17:36
SUN has appointed UK executive Patrick Snowball to the position of CEO, commencing 1 September 2009. Mr Snowball is an...
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SUN has appointed UK executive Patrick Snowball to the position of CEO, commencing 1 September 2009. Mr Snowball is an experienced insurance executive following an extensive career with UK’s largest insurer Aviva Plc and will replace acting CEO Chris Skilton. For the past two years, Mr Snowball has worked with Towergate and has been a director of Jardine Lloyd Thompson. Our 12-month price target is $7.00 and at current prices, we retain our short-term and long-term Neutral recommendations.
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Energy Developments (ENE) Archer revises offer to $2.80 per share. Infratil wants out, but is it enough? 02/07/2009 22:44
Archer's revised offer comes as no surprise, given the indicative value of the offer for ENE's UK and French landfill...
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Archer's revised offer comes as no surprise, given the indicative value of the offer for ENE's UK and French landfill assets. The UK/France offer would involve the disposal of around 75MW of power generation capacity, which is ~13% of the ENE's total worldwide installed power generation capacity. Given the implied value for the UK and French assets, Archer's bid, in our view does, not look attractive. We retain our NEUTRAL outlook on ENE pending the release of further information.
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Hastings Diversified Utilities (HDF) We upgrade to BUY following the completion of the equity raising 02/07/2009 17:18
Following the equity raising announcement and the commencement of trading ex-entitlements, we review our recommendations. Our new valuation for HDF...
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Following the equity raising announcement and the commencement of trading ex-entitlements, we review our recommendations. Our new valuation for HDF securities is $1.33 and our 12-month price target is $1.45. We value the equity in Epic Energy at $417M (which compares to the $300M offered by TCW and the "materially higher" offers in the Epic Energy sale process). The forecast FY10 distribution implies a yield of ~12.5%. We upgrade our 12-month and long-term recommendations from Neutral to BUY.
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