MFS tourism property investing company market capitalisation has plummeted from $3.2 billion to $478 million over the past few months. The shares slumped 69 percent on Friday amid concerns over the size of the company's debts. The position of CEO, Michael King, appeared uncertain after board discussions on his future. However, Mr King was understood to be still at the helm yesterday. MFS said proposals from a number of different organisations had been received and were being considered. It is hard to see how much value the shares present at this stage.
Ten Network (TEN) at the company's annual general meeting yesterday has reported strong growth in advertising revenues, recording 14.2 percent rise in earnings before interest, tax, depreciation and amortisation during the November quarter to $122.5 million. Executive chairman, Nick Falloon, said that TEN expects its 2007-08 profit to climb, and forecast that the group's advertising revenue share would be at least 30 percent in 2008. The company announced a half-year dividend of 10c a share, up from 9c, payable on January 4. The shares in TEN are climbing up and getting closer to $3 mark.
Zinifex (ZFX) predicts that its operating costs will rise by 10 percent this financial year due to the ongoing skills shortage and higher Australian dollar. Lower zinc prices are dampening earnings but $800 million reaped from the sale of its European smelters would see the company better last year's $1.3 billion net profit, acting chief executive, Tony Barnes, said yesterday. Incoming chief executive, Andrew Michelmore, will target an aggressive acquisition strategy when he joins Zinifex in February. ZFX share price has closed at 14.71.
Google in the first half of 2007 Google controled a 39.8 percent market share of all online advertising in the U.S. And that compares to a 34.6 percent share in the first half of 2006, based on IAB (Interactive Advertising Bureau)data for that period. Following is the math: $3.98 billion (Google’s U.S. revenues in the first half of 2007)/$9.99 billion (IAB’s estimate of total U.S. online ad revenue in 1H07) = 39.8 percent. This shows that Google is outpacing the growth of online advertising by a wide margin. Total online advertising revenues grew 26.5 percent year-over-year, while Google’s ad revenues grew 45.7 percent.
Nufarm (NUF) agricultural chemicals maker, has endorsed a $3 billion bid from China's state-owned chemical company, known as ChemChina, to combine their crop protection interests into the biggest producer of its type in the world. If successful, it would also be the biggest bid for an Australian company by a Chinese firm. China National Chemical Corp will pay $17.25 per Nufarm share, or $2.96 billion, in conjunction with private equity firms, Blackstone Group and Fox Paine. NUF shares has closed on Tuesday at $17.45.
Wotif.com (WTF) has increased its offer for online travel website Travel.com.au (TVL), by 10 percent to $54.8 million. Shareholders in Travel.com.au will be able to choose between an all-cash bid of 55 cents or they can choose to receive between 0.0982 and 0.1146 Wotif shares. The battle for Travel being fought between Wotif and Travel's rival, Webjet (WEB) may still go on. Travel shares went up to 64 cents, 9 cents higher than Wotif's bid after investors concluded that bidding war is not over yet. Webjet shares gained 3.5c and closed at $1.50, while Wotif shares moved down by 10c to end on Friday at $5.35.
Coates Hire (COA), largest equipment hire company, rejected a revised $6.40 per share takeover bid and 27 cents in franking credits from Carlyle Group and Kerry Stokes's National Hire Group. The $1.7 billion bid 'continues to undervalue the company,' said Coates chairman, Bill Cutbush. However, it is believed Coates' biggest stakeholder, Dale Elphinstone, is keen to sell his 5 percent stake to the consortium. The Tasmanian businessman owns Williams Adams, a distributor of Caterpillar bulldozers, and it seems that he needs cash to start another business. COA shares closed at $5.70.
Mortgage lender, RAMS Home Loans Group (RHG) which listed at ASX on July 27 with a price of $2.50 had a very wild ride so far. Shares dropped as low as 86 cents two weeks ago, recovering to around one dollar by the end of August. RAMS will move to refinance loans worth over $6 billion in a bid to minimise losses. In what is believed to be a first for an Australian issuer, RAMS invoked a clause forcing lenders in the United States to extend its loan period by 180 days. This will give the mortgage provider time to put in place alternative financing, believed to be based on securitisation.
Macquarie Bank (MBL) warned that two of its funds could lose a quarter of their value due to 'price volatility' in the United States (US) senior loans market. Macquarie Fortress Investments director, Peter Lucas, said the fallout from the sub-prime mortgage crisis had created 'supply demand unbalances' in the loans market. While the listed Macquarie Fortress Notes and the unlisted Macquarie Fortress Fund do not have any direct exposure to US sub-prime mortgages, both are highly leveraged. The share price is down nearly 8% to $76.60 in midday Wednesday trading. Later on Macquarie Bank chief executive, Allan Moss claimed this week's sudden downturn in the Australian stockmarket had been an 'over-reaction.' The sharp fall has wiped more than $2.4 billion from Macquarie's market capitalisation. Mr Moss said, 'The Australian economy is in a good shape, the global growth story is basically intact."
Marketable parcel means a parcel of shares with a total value of more than $500. To save administrative costs of sharehoders registration many listed compnies in Australia are buying back shares from investors who hold less then marketable parcel of shares. This trade in most cases will be commission free.
BioPharmica (BPH) intends to seek an IPO for investee Cortical Dynamics on the Australian Securities Exchange. BPH shareholders would receive a free $0.20 share in Cortical Dynamics for every listed BioPharmica share that they hold on July 15th 2007. Cortical Dynamics is working with BioPharmica and Swinburne University of Technology (SUT) to commercialise and develop the Brain Anesthesia Response (BAR) index monitoring system. The BAR Monitor is designed to detect and record the electrical activity of the human brain in order to assist anesthetists in monitoring body functions during surgery. BioPharmica shares are trading at $0.23.
Timbercorp (TIM) has been sharply up after speculation of interest from private equity firms which lifted the shareprice of agriculture investment company. Timbercorp said it had been approached by several parties for an acquisition or merger, though none had yet submitted a proposal 'capable of being considered.' Agribusiness researcher, Lonsec, said Timbercorp's cash flow and its potential asset crystallisation would be attractive to private equity players. Timbercorp last month reported a 58.8 percent drop in net profit for the six months to March 31. Shares are trading at $2.05.
BlueFreeway (BLU) recently formed digital and interactive marketing company announced that it would buy United States internet research company, SageMetrics. It will be BlueFreeway's first acquisition since its formation in December, and will give it a presence in Los Angeles, Paris and Chennai, where SageMetrics has offices. SageMetrics also has offices in Australia and Britain. BlueFreeway will make an initial payment of US$1.25 million ($1.5 million), with other payments to follow over the next three years as part of a performance-based agreement. BLU shares closed on Friday at $1.42.
Brickworks (BKW) the largest Australian brick maker, has reported a 20 per cent fall in first-half profit, attributing the decline to a weaker housing market in New South Wales. "This downturn has no end in sight," said managing director, Lindsay Partridge. Net profit for the half was $36.71 million, against $48.10 million in the same period last year. However, Mr Partridge said Brickworks' underlying business remained strong despite the result, which was mostly due to a higher tax expense. BKW shares are trading at $13.10 on last day of March.
Rubicon America Trust (RAT) principal activity is real estate fund management. Rubicon is the Responsible Entity for Rubicon America Trust. It has five office portfolios in the USA with a $US479 million ($A634 million) joint venture with NGP Capital. It is an investment for more conservative minded with divident yield around 10%. Rubicon America Trust closing share price is $1.10.
The sharp rise in the number of private equity deals has prompted the Reserve Bank of Australia (RBA) to warn about the potential threats that leveraged buyouts pose to the nation's economic stability. Private equity deals in Australia totalled $27 billion in 2006, $12 billion above the previous five-year average. The RBA warned that as leveraged buyouts usually increased a company's debt ratio, it became more vulnerable to changes in economic conditions. However, the bank noted that the surge in activity was not currently endangering the continuing expansion of the economy.
Bendigo Bank has provided earnings growth forecast of 10 per cent this financial year, as it outperforms rivals in the community banking sector. Bendigo Bank runs a retail network under its own name, together with a franchise of community banks. Managing director, Rob Hunt, said this twin-track strategy was "clearly generating value for shareholders," reflected by a 2 cents rise in the interim dividend to 24 cents. Recent industry surveys rate Bendigo's customer service the best in Australia.
Beacon Minerals (BCN) involved in mineral exploration, has announced that one of its gold projects has also been deemed prospective for uranium. Lyle Thorne, who is the managing director, said the company simply re-examined old radiometric surveys conducted by the Western Australian Government. Mr Thorn said Beacon received the uranium data last week and released it to the market as soon as there was confirmation the tenement had been pegged. Beacon Minerals www.beaconminerals.com shares closed 15.5 cents higher at $0.55.
WorleyParsons LTD (WOR) is a provider of professional services to the energy, resource and complex process industries with a strong dividends policy. Under normal circumstances, an amount up to 70% of the company’s full year net profit after tax will be made available for distribution, with the balance being retained to fund on-going growth. Dividends will be franked to the maximum extent available. Shares are trading today at $20.03.
Explosives manufacturer, Dyno Nobel (DXL) has paid US$31.8 million (A$40.6 million) for a 29.9 per cent stake in the rival company, Fabchem China. The acquisition will increase Dyno's presence in the A1$ billion Chinese explosives market and help it meet growing demand from mining companies. "We targeted Fabchem because of the quality of its business, overall safety record, its management and its reputation," said Dyno chief executive, Peter Richards. Current price $2.51.
Electricity retailer Energy One (EOL) started strongly on the sharemarket yesterday, 7c above its issue price of A$1. Managing director, Vaughan Busby, said that the listing would help Energy One in raising funds for acquisitions and organic growth. The 11-year-old company has a capitalisation of about $22 million, and has 8500 customers in Queensland and New South Wales. It plans to expand through continuing deregulation of the industry. EOL has risen to A$1.135 by the close of trading day.
