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Is Amazon, The Retail Behemoth Causing Jitters For ASX Listed Pharmacy Operators

Amazon has been progressing well on its expansion plans in Asia Pacific and one initiative of the recent past has been the launch of e-Commerce platform in the Australia. However, the slow entry into one of the most Westernized spending markets comes on the back of the country's comparatively underdeveloped broadband internet sector and low operational risk score for transport network. Nonetheless, the forecast around e-commerce sales in Australia is to grow by an average of 9.1% per annum over a medium term period (2017-2021), with the market to reach USD24.2bn in 2021, up from USD17.2bn in 2017. In total terms, Australia is forecasted to have a larger e-commerce market than countries like Singapore, Hong Kong and Malaysia.  

Read full story at https://seekingalpha.com/instablog/49417156-kalkine/5181376-amazon-retail-behemoth-causing-jitters-asx-listed-pharmacy-operators

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One ASX Growth Stock Mounting further High – #AfterPayTouch Group (ASX: APT)

One #ASX #Growthstock from the information technology sector that has emerged big recently has been AfterPay Touch Group (ASX: APT). APT lately reported to have over 6,000 retail merchants on-board and 800,000 customers. Agreeably, partnerships include Australian retailers that have an overseas presence, including: Morphine Cosmetics, Quay Australia, Margaux, Lorna Jane etc. AfterPay Touch Group Limited (the Company) also released 53,000,000 ordinary shares (Escrowed Shares) and 4,300,000 options (Escrow Options) in the Company from escrow in May 2018. The group has been investing on expansion plans across the globe. Read full story at https://kalkine.blogspot.com/2018/07/one-asx-growth-stock-mounting-further.html

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Check out Kalkine stock report for artificial intelligence stock. 

#asx #stockresearch #stocktips #stockrecommendations

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Are these ASX growthstocks good to grab at current levels – ALL, A2M?

A company’s core EPS is surely a key indicator of its cash-generation and further utilization for reinvesting for growth or paying returns to shareholders. For better future, the companies might just invest in projects or making capital allocation for pipeline purposes when looking particularly at growth. For stocks that are linked to good growth projections, return on investment is like a steady phenomenon over years, however, investing in an early-stage startup which may emerge as a good growth stock later sometimes proves to be a great strategy. Read full post at kalkine blog

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Is this Industrial Group a #TopStockTip - Reliance Worldwide Corporation Ltd (ASX: RWC)?

An industrial sector stock doing well lately has been Reliance Worldwide Corporation Limited (ASX:RWC) with an annual dividend yield of 1.2%, which is fully franked. RWC is a leading manufacturer of brass Push-to-Connect (PTC) plumbing fittings across the world.  

Read full post at: https://plus.google.com/b/110872262997609323446/+KalkineAu/posts/CnxyUisCzf8

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8 Upcoming Ex-Dividend Dates – TCL, SGP, ARF, CLW, NSR, CZZ, RFF, GNC

Ex-dividend date is a date on which you should be on the company’s books as a shareholder so as to receive the dividends. A shareholder will not receive the next dividend payment if the stock is purchased by the shareholder on or after its ex-dividend date. Here are some of the stocks, which have been now lined up with respect to their respective upcoming ex-dividend dates.

Read full post at: Kalkine Blog

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How have stocks performed amid new tariff tension – ASX: BHP and ASX: RIO?

Global stocks took a back seat as additional tariffs on a further $US200 billion worth of Chinese goods were stated to be levied on the trade terms by the US igniting more tension. There could be significant pain for several companies and this could negatively impact supply chains across Asia especially in South Korea, Japan and Taiwan. However, initial reports pointed to the fact that tariffs may be more broad-based. Moreover, as the Chinese economy continues to rebalance towards domestic consumption and post growth rates above 6.0%, exporters might be able to redirect some of the lost export orders towards the domestic market, reducing the negative impact. Read full post at Kalkine Blog

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Is Kazia Therapeutics (ASX: KZA) a good play under growthstockstobuy?

Generally speaking, biotech and pharma domain can unveil some hidden gems when looking for growth stocks to buy. However, the regulatory risks and R&D expenses keep many thinking about venturing into such propositions. Through this article, we underscore one such stock - Kazia Therapeutics, which has lately emerged as a biotech play that market is looking under growth stocks to buy. Read full post at https://plus.google.com/u/0/b/110872262997609323446/+KalkineAu/posts/YeWaNMNapV4

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The outflow of many technology deals has come at a time when technology stocks have been on an upward trend. The technology-heavy Nasdaq in the US, a few months ago, climbed to a 15-year high above 5,000 points, stirring talks of bubble market territory in the process. Technology is turning into a daily life product and computing is becoming embedded in the world, while we seem to be entering deep into the era of digital technology. Read More at Kalkine Blog

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With the electric vehicles market zooming high, the demand in lithium sector trended up at a soaring level in the last two years but soon the headwinds on supply outweighing the demand scenario capped this advancement, as seen since the beginning of year 2018. While the ups and downs in the lithium sector are not done with yet, let us grab a look at how the sector dynamics appear at the moment given the widening of gap between bulls and bears.

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One financial sub-sector that is gaining traction lately as investors look beyond the banks and tend to capitalize on the opportunities, is listed investment company (LIC) that includes professionally managed portfolios. Further, under this, investors who have some bit of risk appetite and would want to strike a balance with growth look into mid-cap segment.

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Is Diversifying Your Portfolio Away from Banks and Market Darlings of the Past a Good Strategy?

Dividend contribution from these five entities has otherwise been identified to contribute about 40 per cent of the total dividend generated from the top 200 listed companies. With time, it has been noted that investors who have the hunger for dividend growth have realised that these high-dividend paying stocks also bear capital risk to some extent.

In past two years, Australia and New Zealand Banking Group Limited (ANZ) that agreed to sell about 16 businesses to simplify its portfolio and reduce its operating risk, made it easier for the investors to regain some confidence on the dividend sustainability. However, Royal commission into the banking sector, changes in the market conditions with new tax reforms and liquidity requirements have been seen as threat to the proliferating dividend yielding scenario. Further, in 2017, while the banking sector stocks provided good yields, the share prices were down a lot. For instance, National Australia Bank Limited’s (NAB) share price has been down by 13.8 per cent in the past one year despite being one of the top dividend stocks.

If we talk about Telstra, it has a decent yield of 7.42 per cent and now is planning to recommence the Dividend Reinvestment Plan from FY18. It was observed that Telstra’s dividend dropped by almost a third over the past 12 months at the back of the challenges that the group faced last year. The share prices were down by 24.7 per cent in past one year while return on Invested Capital of about 11.6 per cent remained unchanged from 2016 to 2017.

Given this scenario, investors may want to diversify the portfolio and also look at options with income and capital rise. For instance, Woolworths, Suncorp and IOOF are some examples that can be looked at and held for long-term based on the strategies adopted by the groups. Woolworths, for example, is committed towards its progress on transforming its business at sustainable levels to drive shareholder value in long term. The Company announced an interim dividend of 43 cents, up from last year’s interim dividend. Another stock is Magellan Financial whose interim dividend has increased over time and the group has strong fundamentals for future growth.

Therefore, sometimes investments in banks or high yielding stocks can be diverted to other income stocks that might have more potential looking at the macro picture in totality. In other words, investors can have a balanced portfolio with exposure to banks with decent underlying potential and stocks to the likes of Telstra that are capable of regaining their lost lustre (as seen at the back of latest efforts), along with stocks that are emerging to have good sustainable income streams in the future.

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There is a decent uplift in demand of lithium for electric vehicles as they are rechargeable. So it is in huge demand for reducing pollution and fuel dependency. As per these scenarios, markets seems to be having interest in lithium mining stocks. The significant usage for lithium has been into rechargeable batteries for mobile phones, laptop, digital camera and electric vehicles.As the battery storage will be crucial for energy demand, and thus the outlook for lithium pricing can be expected to stay positive in medium term.

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Dividend Vs Growth Dilemma?

With the emerging scenario where dividend and growth play pivotal roles in many investment decisions, investors generally get attracted to dividends because of the benefits incurred from the franking credits against what is reaped through low-interest bearing term deposits. However, it is to be analysed that whether these companies also look at their own growth prospects while they intend to keep the shareholders happy through dividend payments. In the financial year 2016-17, Corporates were seen to increase pay-out ratios via dividends and the companies listed on S&P/ASX 200 distributed about $69 billion of profits to their shareholders, up from $57 billion delivered in 2015-16.

As per the latest profit reporting season, interim earnings for about 135 ASX 200 companies and 32 companies that reported full-year earnings, demonstrated that most of the companies have made profits and are investing this back into their respective businesses. As per CommSec, 94 per cent of half-year reporting companies reported for profit and this level has been above the 87 per cent long-term average, however, only 56 per cent lifted profit (which is below the 61 per cent average); while 87 per cent of half-year reporting companies declared dividends. In aggregate terms, dividends per share were lifted by 9.4 per cent against a year ago period. On the other hand, while aggregate revenues were lifted by 6.9 per cent, expenses also were up 8.2 per cent as some companies invested more into their business while some focused-on marketing and advertising expenses.

On a side note, the dividend yield that uses the dividend performance and measures it against the current price of the stock, might sometimes mislead an investor. Further, companies having a double-digit growth rate typically have below average current yield, and this might not attract investors looking for good income. It is also seen that a Company having a good track record of growth, is more likely to start paying or raising their dividends in future as compared to a Company having slow or negative growth.

For instance, Suncorp declared an interim dividend of 33 cents for H1FY18 which reflected a pay-out ratio of 90%. This was well above its historical interim ratios and was consistent to the commitment it has made to its shareholders for FY18. However, the group might have done this looking at the NPAT that dropped by 15.8% as compared to 1HYFY17. The share price movement was sinusoidal in past three months while total lending grew by 8.7 per cent. Telstra is another income stock that generally pays dividend from its cash flow and has a long-term growth trend.

Given the above, it sometimes becomes important to strike a proper balance between income and growth stocks looking at the shareholders’ interests. One needs to evaluate that whether a company with a Return on Equity of 20 per cent and an annual profit of $1 million, paying 100 per cent of its earnings as returns to shareholders would be better than a company with same financial scenario but reinvesting 100 per cent of earnings in its operations. The latter might deliver higher earnings after about 8-10 years of growth and might consider paying high dividends post the exorbitant growth phase. However, these are estimations that hinge on many factors, including the performance over the years, and any macro picture derailing the growth scenario.

Thus, the varied outcomes point to the fact that investors need to choose the stocks very prudently, whether growth or income, aligning with their long-term or short-term interests. It is thus a key to look at the fundamentals of the company, prospects of growth at the expense of paying high dividends or reinvesting in business, any growth catalysts, macro dynamics and other such parameters that help estimate the future in a better manner.