around the traps ... with the ferret

  1. 4,756 Posts.
    Around the Traps ... with THE FERRET
    07:28, Wednesday, 16 February 2005

    Sydney - Wednesday - Feb 16: (RWE Australian Business News) -
    ****************************

    COCHLEAR (COH) yesterday announced a 10 per cent rise in
    first-half net profit to $29.5 million, and lifted its full-year
    guidance from the range of $50 to $51 million to $53 to $55 million ...
    and the market went wild.

    The shares soared $1.38 to $29.08, a jump in market
    valuation of $75 million, before settling at $28.85.

    The market always likes to go overboard with this stock.

    The full-year profit will be barely equal to EPS of 100c a
    share which puts the stock at the peak price on a future p/e of 29,
    about double the market average.

    *****

    Is this a turning-full-circle situation?

    The Internet operators, such as REALESTATE.COM.AU (REA), have
    been building up a nice little earner chipping into the classified
    advertising revenues of the newspaper publishers.

    Now realestate.com.au is to get into the publishing business
    itself, with the launch of the realestate.com.au Property Guide.

    The eastern suburbs of Sydney (as always) has been selected for
    the first of several trial editions.

    The 96-page edition will be delivered door-to-door to 50,000
    homes and contains more than 1000 local homes and units for sale.

    Based on the success or otherwise of these trials, the company
    will consider rolling out a number of Property Guides in key locations
    throughout Australia.

    Realestate.com.au will have to be careful that Internet
    operators, such as itself, don't chip away at the new publication.

    The company's shares had a really funny day, plunging 19c to
    $1.88 before closing at $2.01.

    The share price trend does not indicate it but if the company
    does succeed with its new publishing venture it will become a prime
    takeover target.

    *****

    AUSTRALIAN MINES (AUZ) yesterday used some new mining measures
    (new at least to us) in reporting that its Duplex South prospect
    contained highly anomalous gold values including 433, 483 and 952 ppb
    gold.

    We guess it must be parts per billion, but 952 is the same as
    0.952 g/t gold, and it was described as the "best" assay.

    The shares remained at 9.6c, or 9600 ppb if you like.

    *****

    With the interim report due out today we had been wondering
    whether followers of LEIGHTON HOLDINGS (LEI) should read anything into
    the seven-day share price slide preceding the announcement, including a
    23c fall on Monday.

    Probably not.

    The shares bounced 35c to $11.20 yesterday before closing at
    $11.10.

    *****

    TAMAWOOD (TWD) did its best to soften the blow.

    It said its December half-year showed a net profit of $2
    million, which was "an improvement of 376 per cent on the second half
    of last financial year".

    Unfortunately, in the market we like to compare like with like,
    so the profit was 43 per cent lower than the previous corresponding
    period.

    The board also declared a fully franked interim dividend of 5c,
    which it said was "consistent with its 80 per cent payout-ratio
    dividend policy".

    It's a pity it wasn't "consistent" with last year's interim of
    8c.

    In announcing the result, managing director Lev Mizikovsky
    said:

    "Tamawood's result in the December 04 half is based on a
    realistic level of sales and reflects a more settled market in our
    view, even though we could have done without the market dampeners of a
    federal election and heightened interest rate uncertainty, and we are
    certainly pleased to see a marked tailing-off in trade labour
    shortages and resultant labour price hikes."

    Oh, no.

    Now they're blaming the election.

    (Comments and complaints to [email protected] - no requests
    for advice please.)

    ENDS

    Copyright © 2005 RWE Australian Business News. All rights reserved.
 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.