Overview: Z Energy investors have had a wild ride over the past few weeks. The share price was pumping for a while, rising 10 percent after an update on their Chevron acquisition. The high octane upswing didn’t last, with the share price dropping considerably after significant shareholders Infratil and the New Zealand Superannuation Fund sold 20 and 10 percent respectively. The shares were sold at $6 a piece, a 10 percent discount to the closing price on Tuesday, before the...
There have been some further developments from the HMRC regarding pension transfers from UK Defined Benefit or Final Salary Schemes to Recognised Overseas Pension Schemes (ROPS). With effect from 6th April 2015 it is a requirement to take impartial financial advice before going ahead with a transfer of defined benefits to a defined contribution arrangement if the value of your benefits is more than 30,000.00 GBPs. You will need to sign off that you have taken appropriate independent advice from...
The average traded price on the Global Dairy Trade Auction has risen a cumulative 41% at the last three GDT auctions, with whole milk powder prices back to a touch below US$2,500/tonne. A remarkable turnaround. GDT AUCTION VS MILK PRICE FORECAST Source: ANZ, GlobalDairyTrade, Bloomberg On this recovery in dairy prices, there are four immediate considerations. GDP is a lagging indicator while commodity prices are a leading one; this reinforces the point made above. The terms of trade and importantly dairy...
The current low interest rate environment has been plaguing fixed interest dependent investors for some time now, and with the recent cut to the official cash rate (OCR) on the 10th of September by 0.25% for the third time, it looks as if the low interest rates are here to stay. Equity markets have been generating a reasonable amount of interest, with many investors looking to substitute fixed interest and interest bearing deposits for equities. The current market environment is providing...
Health Care Sector Review Company: Metlifecare Sector: Aged Care Overview: Recently Metlifecare released their full year result, reporting an underlying profit of $52.4 million, up 13.9 percent from last year. The aged care provider has been the benefactor of our aging population, and the house price appreciation we are seeing in Auckland. Pros: The house price appreciation we have seen in Auckland helped Metlifecare to a reported Net Profit After Tax of $122.7 million. This includes a $121.2 million “fair value...
Overview: With “earnings season” behind us, it is timely to look back at the company that produced one of the better results. Spark New Zealand Limited surprised the market with the promise of increased dividends in 2016, including a 3 cents per share special dividend. Pros: Also notable in the result was good growth in mobile connections, up 172,000 in 12 months. More importantly Spark has managed to win back market share, seeing their share of mobile revenue rise 2...
It was the best of times, it was the worst of times… at least according to your average economist. But which average economist are we supposed to believe? For those that missed the rigmarole this week, we saw the worst of times, with the Dow Jones Industrial Average (perhaps the most irrelevant, but still oft-quoted index in the world) dropping 500 points on consecutive days for the first time ever. This was coupled with substantial drops on the Shanghai Index....
Overview: NZX Limited operates markets for capital, risk and commodity products. They are a monopoly in many senses with no other market operators in NZ of any scale. Along facilitating equity, debt and derivative trading, the NZX provides data, produces agri publications, and has recently got more involved in funds management. Pros: Their funds management division was boosted by the acquisition of SuperLife in January. This week, the NZX reported a jump in SuperLife funds under management of 10.7 percent,...
Overview: If investors in the Fonterra Shareholders’ Fund (FSF) needed a reminder of their place, they got it last week when the dairy co-operative announced support for share-backed farmers in the form of an interest free loan of 50 cents per kg of Milk Solids. This goes to reiterate to FSF unitholders that their lack of any voting rights means they are merely along for the ride. And what a wild ride it has been. Pros: Although some unitholders may...
