Stock Analysis

Finding an entry point with Orica

Investor focus for Orica has shifted dramatically in the last few weeks. The economic implications from the coronavirus (COVID-19) outbreak have challenged previous expectations for: i) Higher ammonium nitrate (AN) volume growth in FY20, ii) Margin recovery to continue, iii) The recent acquisition of Exsa to improve the performance of the Latin America segment and iv) ORI to use its balance sheet to pursue further acquisitions and/or growth initiatives. In this note, we examine the earnings growth and the balance …

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Asaleo Care not that insulated from coronavirus

We recently reviewed the fundamentals for Asaleo Care (ASX:AHY) in order to assess the potential for a re-rating in light of the Company now having a more predictable (and defensive) earnings profile. We also looked at the extent to which this factor would insulate earnings during the current coronavirus crisis. About Asaleo Care Asaleo manufactures personal care and hygiene products, which are distributed through retailers, distributors, and directly to corporate accounts. Following the sale of the Consumer Tissue Australia business …

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Will coronavirus and COVID-19 benefit Sonic Healthcare?

The share price of Sonic Healthcare (ASX:SHL) has not been immune to the recent market sell-off. However, they have outperformed the S&P/ASX 200 Index as well as the S&P/ASX Healthcare over the past three weeks. As one of the leading global providers of pathology/clinical laboratory services, we examine the extent to which SHL’s earnings are leveraged to increased patient testing for coronavirus (COVID-19). While the latter has the potential to be an earnings tailwind, we also assess the performance of …

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Cleanaway shares are defensive with more upside

In the current market environment, it is worth being invested in a company that has not only seen its share price hold up well, but has the potential to head higher when the market settles down. Cleanaway Waste Management (ASX:CWY) is one such company. On 19 February this year, Cleanaway’s half year results (1H20) surprised the market. This led to the share price jumping 16 per cent on the day. Reported earnings exceeded market expectations, which were low heading into …

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Is CIMIC great value, or a value trap?

CIMIC Group (CIM) endured a challenging 2019. It was underlined by disappointing financial results, challenges in the Hong Kong construction business, concerns about cashflow performance and a substantial write-down of its Middle East business. Has the resultant share price fall provided us with a great chance to pick up CIM at cheap levels? Or is buying it here a value trap? About CIMIC Group CIMIC is an engineering-led construction, mining, services and public private partnerships Company. It works across the …

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