Last day of ASX earnings season, let’s see what the market has in store for us today. A look at ASX:MDR, ASX:MOZ and ASX:MVP.
Updated 9:45am
BEFORE THE MARKET OPEN
Source:Â https://stocksunderthehood.com/free-resources/us-sector-performance/
Most sectors saw falls overnight in the US. Our market is projected to open down 15 points.
The following chart is an ETF of global gold mining companies.
It’s interesting for a few reasons. The first reason to me is that if I didn’t know better and looked at this chart, I would assume that the chart of the gold price would look similar. But it doesn’t.
It did but since the start of the year there has been a large divergence. I’m not sure why that is. You would have to think at some point they will play catch up as the historical correlation is a strong one (as you would expect). As for the reason for the divergence – I don’t really know. In Australia, a lot of miners have seen their cost of production rising due to inflation and higher wages. This is the best explanation I can come up with. However, that isn’t unique to the start of 2024 …
The other thing that is interesting (and a bit sad) to me about the GDX Global Gold Miners ETF is that there only remains one Australian listed miner in the top 12 constituents list.
Some of those companies have operations in Australia but have simply swallowed one of out local companies to do so.
This puts it into perspective:
Today is the last day of reporting season for the ASX. Let’s have a look at some company reports and see if we can find any gems.
This is the hit list as at 8:58am. Many more will be added as the day goes on. Not the most inspiring bunch so far.
Medadvisor (ASX:MDR)
https://www.mymedadvisor.com/
Let’s have a look at (ASX:MDR), I’ve been noticing the share price going well lately.
Looks solid enough. What’s not contained in those numbers is that they’ve been issuing shares and so there has been some dilution to shareholders over the comparable period.
Not quite as solid when you put it that way, eh?
Life would be so much easier if companies were made to announce their numbers on a per share basis. It’s the way they do it in the US. Not sure why we don’t do it here.
Medical Developments (ASX:MVP)
https://medicaldev.com/
I know one of our subscribers is a fan of this one. Great company but has struggled to turn a good product into profit in the past. Let’s see if they’ve addressed that.
This reads a bit better than that.
.. and this reads best of all.
I’ll quickly put their numbers through the mincer and see what it produces.
Good product as I said that is producing ever increasing revenues. No issues there.
But this is where they have a problem There’s signs of improvement and the outlook is good so let’s hope they can achieve a dramatic return to form when they next report.
One thing to always be aware of when a company is Operating Cash Flow negative is to check the cash on had balance. ASX:MVP saw their cash on hand fall from $37.1M at the end of December 2022 to just $15.7M at the end of this December. If I was a shareholder of this company I would be concerned that there will be a capital raising sooner rather than later.
Mosaic Brands (ASX:MOZ)
https://www.mosaicbrandslimited.com.au/
I like a challenge, so the next stock I’ll take a look at is MOZ.
Not sure I want to keep looking. It’s been a basket case for some time. Looks like the new cheaper inventory is their latest attempt to turn things around. Sure revenues are up so they may be on their way but I also think you need to have a lot of hope to own this stock. For those that have been hopeful since 2019, that is yet to pay off.
Just a funny little observation. When you go to their website, their Favicon is just the default WordPress Icon. Come on guys, lift your game!
Last day of ASX earnings season isn’t offering up a lot to be inspired by. Perhaps there’s a reason why these companies have waited for the last minute to release their results.
Disclaimer: This information is provided purely for educational purposes. It takes no account of an individual’s personal financial circumstances and hence can in no way constitute financial advice. The above data may be subject to errors or inconsistencies for which the author takes no liability. It is imperative that all investors do their own research or if they need advice, seek it from a qualified financial adviser.
Thursday 29/2/24