Follow-up July 29th 11:00am (11 days later)
Telix Pharmaceuticals (ASX:TLX) has been quite volatile since their update but today finds itself almost exactly where it was before. Michael Hill ASX:MHJ jumped on the day of its update and has essentially gone sideways since. Silver Mines ASX:SVL is exactly the same price too. CTI Logistics ASX:CLX had a strong day before it announced results and a couple of strong days after. It has managed to hold its gains to date. Accent Group ASX:AX1 has also gone sideways after an initial pop upon its market update.
Let’s have a quick look at some announcements from today.
Michael Hill ASX:MHJ
I usually view an announcement after market with scepticism but there doesn’t seem to be anything nasty hidden in this one. Revenue is better than expected while analysts seem to have been expecting EBIT to be around $16M, the company is saying that is the upper range now. It must be noted that EBIT was nearly $59M last year though.
You probably couldn’t find many worse charts than this. Retail is cyclical and no stock demonstrates that better than this one.
You need to look no further than this earnings chart to see why.
CTI Logistics ASX:CLX
I’m not sure what the market was expecting for this company. With only a $122M market cap, it doesn’t appear to have any analyst coverage.
Perhaps this result is better than the market was expecting and few got wind of that before the announcement tonight?
Silver Mines ASX:SVL
This small silver company has secured some funding which appears to be on reasonable terms. The project has been a long-time in the making so hopefully this is the final raise they need before delivering their DFS. Great terms for the investor with almost no downside and plenty of potential upside and a 10%p.a. income stream in the meantime.
Sadly for anyone bullish on the silver price, this has been a poor way to play that theme. While Silver (in Australian Dollars) is up 30% in the last 3 years, this company is down 40%. In more recent times, the divergence has been even more glaring.
Accent Group ASX:AX1
These guys still find ways to grow in a tough retail environment. The result is a beat excluding the one-off charge ($123.2-125.2 compared to expected $117.18) and hence the shares have had a great day today. Analysts will be lifting their numbers based on this as well as factoring in the removal of the less profitable stores that are to be closed.
A good result was met with a very positive day of trading today. It will be interesting to see if the shares can start a new uptrend from here. Volume today was huge.
Telix Pharmaceuticals ASX:TLX
I read this on the train this morning and saw the words “upgraded revenue guidance” and thought this stock would be in for a good day. In the end they finished down 2.65%. I think the reason is that while they have lifted their numbers, the market had already lifted its numbers. Nevertheless, growth of 48-54% on 2023 makes this one of the most exciting growth stocks on the ASX.
The price chart also gives us clues that the market had been increasing its expectations.
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.
Announcements July 18