MDS Financial Blog

Metcash will pay $55 million for a 50.1% stake in Mitre 10, and in its own words, “become a champion of the independent hardware retailer”.

Metcash, a grocery wholesaler, will have the right to acquire the remaining 49.9% of equity in 2012 or 2013, when audited accounts have been finalised.

Mitre 10 has given the transaction its full support, but shareholders of Mitre 10 Limited and Mitre 10 Australia Limited must also give their approval.

Metcash Limited
ASX Code: MTS

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For more on this news…

• Metcash ASX Release: “Metcash to acquire 50.1% of Mitre 10 and become champion of the independent hardware retailer”
• The Age: “Metcash snaps up 50% stake in Mitre 10″

Finance News Today ASX News, hardware retailer, metcash, Mitre 10 acquisition, shareholders

Presented by Michael Hevern

MDSFinancial

See summary below.
General Advice Only
************************************************
In this morning’s wrap…

DOW: up 0.8%
GS: Upgrades Forecasts for S&P500;
SP500 8 Month Highs

NASDAQ: up 0.4%
Apple up 4% on Rosy Report,
IPhone Sales Eclispe IPods; Margins Up

FTSE: up 0.9%
Best Run in 4 Years;
DAX up 1.3% & CAC up 0.9%

NIKKEI: up 2.7%
Broad Rally on Back of GS SP500 Upgraded Forecast
Hang Seng Flat

Oil: up 0.7% ($65)
Expect Profit Taking

Gold: down 0.5% ($945) 5 Week Highs
Commodities Higher;
USD Lower

SPI: Critical Level(s): 3850 to 4050
SPI up 15 (0.4%)

ASX News
NAB – Bad debts upto $1.1bn; to raise $2.75bn ($3bn inNov08);
BHP – Produnction: June Qtr: Iron ore down 10%; Coal up 4%;Copper down 21%; Petroleum at record levels
HVN – Report flat sales/rev
ORI – Tough 2H09 – still expect profit; paint market slow
LGL – to sell Ballarat Mine; Cuts 200 jobs
RBA – inflation OK; rates on hold
Reports: W: WOW,BHP,AIO; Thu: PSA, STO; Fri: WPL, SGT
Materials & Energy stocks to lead
Banks to continue
ASX – to open higher again – 7th day
US & UK – positive leads

Morning Wrap, Uncategorized ASX News, Business News, Commodities, Crude Oil, DOW, finance, Share Purchase Plan, shareholders, stock market, trading

Presented by Michael Hevern
MDSFinancial

Click here to watch the presentation.

or

Click here to download the mp3 audio recording (978Kb).

General Advice Only
************************************************
In this morning’s wrap…

DOW: up 0.7%
Positive Manufacturing Reoirts;
Schiller Home Price Index Down 18%

NASDAQ: up 0.6%
Chipmakers Lead: Intel up 3%

FTSE: up 2.1%
Miners Lead Recovery;
DAX up 2% & CAC up 2.5%

NIKKEI: down 0.1%
Japan: Toyota Fitch Rating Cut A+ (Annual $5.7bn Loss)
WTO Cuts Trade Forecasts

Oil: Down 1% ($69)
Profit Taking;
Possible Double Top Setup

Gold: up 1.1% ($944) (up 1% FY09)
Commodities Higher;
USD Lower

SPI up 16 (0.4%)
SPI: Critical Level(s): 3850 to 4050

ASX News
BOQ – to suffer from Storm Financial litigation
SUN – New CEO Patrick Snowball – breakup?
China – to Accept Iron Ore at Asian Prices (33% disc); watch BHP/RIO/FMG
PMI shows 4 consecutive months of expansion
Materials & Energy stocks to see recovery;
Banks to hold
ASX – to open higher;
US & UK – positive

Morning Wrap BHP, Business News, Commodities, DOW, economy, finance, nasdaq, shareholders, stockmarket

Presented by Michael Hevern
MDSFinancial

Click here to watch the presentation.

or

Click here to download the mp3 audio recording (887Kb).

General Advice Only

*************************************************
In this morning’s wrap…

DOW: down 1% (down 25% FY09)
Consumer Confidence Down (49 vs 55);
Schiller Home Price Index Down 18%

NASDAQ: down 0.5% (down 18% FY09)
Outperforms

FTSE: down 1.1% (down 21% FY09)
Miners & Energy Weigh;
DAX down 1.5% & CAC down 1.8%

NIKKEI: up 1.8% (down 25% FY09)
Japan: Toyota to Boost Production
Hang Seng down 0.8% (holiday)

Oil: Down 2% ($70) (down 50% FY09)
Profit Taking

Gold: down 1.1% ($927) (up 1% FY09)
Commodities Lower;
USD Higher

SPI down 24 (0.6%) (down 23% for FY09)
SPI: Critical Level(s): 3850 to 4050

ASX News
ABS – May report for Retail Trade Data/Build. Approvals
PMI – Australian Performance of Manuf. Index
Materials & Energy stocks to see profit taking;
Banks to be weaker
ASX – to open lower;
US & UK – Weak
New Financial Year

Morning Wrap Commodities, DOW, Gold, oil price, shareholders, stockmarket

The ASX has released the results of a Share Ownership Study conducted in November and December last year, providing some interesting insights into investor activity, confidence, processes and behaviour.

The survey indicates that 41% of adult Australians own shares, down from 55% in 2004. A focus on reducing debt, volatile market conditions and a gloomy economic outlook are cited as reasons for the decrease in share ownership.

Among the key stats and behavioural insights:

• retail investors have reduced the mean number of shares in their portfolios from 8 to 7
• the level of uncertainty in the market has increased, with more investors leaning towards the perceived safety of blue-chip shares
• 22% of retail investors expect to buy shares in the next 12 months, which indicates a sense of optimism
• the proportion of adult Australian men who are share owners has remained steady at 40%, however the proportion of women has declined from 37% to 30% in 2 years
• while the average value of trades has increased slightly from 2006, the average value invested has declined sharply
• 70% of direct investment share owners use online brokers to buy and sell shares

To read the full survey, click here to go to the ASX website.

Finance News Today ASX, ASX survey, investor behaviour, investors, shareholders, traders

Ports operator Asciano has announced the launch of a $2+ billion equity raising to reduce debt.

The one-for-one rights offer will make shares available at $1.10, a 40% discount to its last traded price.

Asciano has received four offers to recapitalise or purchase parts of the business, but the board has concluded the equity raising is the best outcome for shareholders.

The new stapled securities will be issued in four tranches:

• one-for-one non-renounceable issue to shareholders: $769 million
• a placement to professional and sophisticated investors: $231 million
• a conditional placement, also to professional and sophisticated investors: $1,000 million
• a conditional placement to director Mark Rowsthorn: up to $151 million

Asciano went into a trading halt on Friday.

ASX Code: AIO
Chart from the Market Analyser – click here for a free trial!

For more details on this news story:

• The Australian: “Asciano confirms $2bn equity raising to reduce debt”

Finance News Today Asciano, ASX News, Business News, Capital Raising, rights issue, shareholders

The Bank of Queensland has been scouting for potential merger opportunities recently, and according to the Herald Sun, is in talks with Suncorp’s banking business, with a view to create a fifth force in the Australian banking market.

The two parties are thought to be discussing options for generating value for both sets of shareholders.

Advantages:

• Suncorp could use an ASX listing to separate its banking and insurance businesses
• A merger would remove competition for Queensland banking
• Both banks can improve their credit ratings, leading to lower fees on government wholesale funding guarantees
• The combined level of deposits and loan assets would be roughly level with St George Bank

Suncorp Metway
ASX Code: SUN

Bank of Queensland
ASX Code: BOQ

Charts from the Market Analyser.

To read the full Herald Sun article, click here.

Finance News Today ASX News, bank merger, Bank of Queensland, boq, finance news, shareholders, sun, Suncorp

An upgrade in copper resources at the Prominent Hill mine sent Oz Minerals’ share price up 5.5% yesterday.

The amount of copper available in the South Australian mine was increased by 32%, raising the copper and gold mine’s total resources by 10%. Oz is also now exploring ways to develop an underground mine beneath the existing open pit.

The mine will be Oz Minerals’ only producing asset if the proposed deal with Chinese MinMetals goes ahead.

Following Wayne Swan’s approval of the deal in April, one of the Chinese Government’s regulatory bodies also gave its approval to the asset acquisition yesterday.

Oz’s shareholders will be voting on the proposal on June 11.

ASX Code: OZL
Chart from Market Analyser

For more info:
Adelaide Now

Finance News Today ASX News, Business News, Commodities, copper, Oz Minerals takeover, ozl, prominent hill, share price, shareholders

Shareholders in Lend Lease dumped shares yesterday, after the company slashed $100 million from its bottom line.

The gloomy British economy has limited Lend Lease’s asset sales plans which were intended to account for 30% of 2009 profit. Further pressure may come when the property portfolio is revalued on June 30.

Despite all this, CEO Steve McCann suggested there are signs the market is bottoming out and positive signals were emerging for residential property.

The share price was down 3% to $7.33 yesterday.

ASX Code: LLC
Chart from The Bourse

For further info:

• Sydney Morning Herald
• The Australian

Finance News Today ASX News, Business News, finance news, investors, Lend Lease, LLC, property market, shareholders, stock chart

Presented by Michael Hevern
MDSFinancial

Click here to watch the presentation.

or

Click here to download the mp3 audio recording (1002Kb).

General Advice Only

*************************************************
In this morning’s wrap…

DOW: down 0.2%
Geithner: Sees Recovery to Start by Years End;
Stress Test: 18 of 19 Banks to need Capital

NASDAQ: down 0.5% – (up 12% YTD)
Yahoo up 3.9% (6 month High)

FTSE: up 2.2% (Catchup)
3 Month High ;
DAX down 1% & CAC down 0.1%

NIKKEI: up 1.6%
Up 28% since March Low
Hang Seng up 0.3%

Oil: up 0.1% – At $54
US Inventories
at 18 Year Highs?;

Gold: down 6% ($896)
Commodities Mixed;
USD Lower

SPI up 10 (0.3%)
SPI: Critical Levels: 4000 & 3800
ASX200 Hits 6 month Highs

ASX News

• RIO – Closer to resolving Chinalco bid (up 83% YTD cf BHP up 12%)
• WBC – 1H09 profit $2.18bn inline (down 6%); impairment charges triple to $1.6bn
• ANZ – XDiv 46c 7-May; $1bn bond issue
• Employment figures Thursday
• Materials, Financials and Energy to be flat
• Golds to weigh
• ASX – to open higher; US – Beating Earnings

Morning Wrap ASX News, Commodities, DOW, finance, finance markets, oil price, Rio Tinto, shareholders, stockmarket, trading