Wed Feb 14, 2024

Wed Feb 14, 2024: AFTER THE MARKET OPEN

It’s a red day today. We’ve had a good run and the inflation shock in the US is a good reason for the weaker hands to take some profits today.

Here’s how the stocks that released results this morning are trading at 10:18Am.

Poor old ASX:GUD. Numbers looked ok but the outlook is a bit weak. Bad day to announce bad news with the ASX200 down 1.4%.

I didn’t get to GNC before the open. Weather stock. Weather was exceptional for them now it’s just back to normal.

ASX:GNC and all the agricultural stocks are highly cyclical and unpredictable. Too hard basket for me. If I were to consider them I’d suggest the best time to buy is during a drought.
ASX:DHG continues to show that the difference between being the best at what you do (ASX:REA) and the 2nd best is vast.
ASX:EVN had flagged prior to this result that it’s results would be weaker than the market had thought. If I were to guess, I’d say todays’ results are inline with their update but the price is down due to a fall in the gold price below $2000 USD an ounce. The $2000 level had held for sometime but the fact that it has now been broken will be seen as a negative for gold in the short-term .
ASX:IEL is the star of the day so far though. Numbers looked good but I’m still yet to find a meaningful outlook from them.

Wed Feb 14, 2024: BEFORE THE MARKET OPEN

Inflation dropped at a pace slower than expected in the US overnight, This has had a significant impact across markets as the expectations for when rate cuts may commence have been pushed out.
This has seen the 10 year bond yield jump overnight. This is a concerning chart since by my definition it puts it back in an uptrend. (price is above all moving averages).

Simply put, this makes equities less attractive to bonds / cash in the short-term.
This has resulted in a sell-off in US Markets overnight like the S&P 500, the DOW and the Nasdaq. Nevertheless, this is just a blip on the Nasdaq chart at this stage.
A new feature on the site is the ETFs page. Here you can see a range of Australian and US listed ETFs and compare their performance. You can view it here:
ETF Performance (stocksunderthehood.com)
This is how the US ETFs I track performed overnight. A very red night.

H1FY24 results continue to roll on in Australia, Let’s have a look at some of today’s announcements.

H1FY24 RESULTS

Commonwealth Bank (ASX:CBA)

https://www.commbank.com.au/

Is first cab off the rank. It’s not a stock that interests me so I’ll cheat and see what the Fin Review says:

Commonwealth Bank (ASX:CBA) H1FY24 results

Doesn’t tell you much. I don’t know what the market was expecting. I do know that ASX:CBA is close to all time highs so a fall in profit doesn’t sound ideal.

AMP (ASX:AMP)

What a dud stock this has been for a very long time. When I first started working my super went into an AMP super fund. I think that was the case for many, many others. What a gift! How did they stuff it up so bad?

AMP (ASX:AMP) H1FY24 results

The story for ASX:AMP for some time has been that the value of their businesses in more competent hands is greater than what the market values them under AMP’s control. Slowly they’ve been selling off bits and pieces and returning capital to shareholders.

Fletcher Building (ASX:FBU)

https://fletcherbuilding.com/

A perenial underperformer has underdelivered once again sadly.

Fletcher Building (ASX:FBU) H1FY24 results

Charts like this make it easy. Simply move on to the next stock. Think of it like this: just about every person that owns this stock is losing money. It’s a hard cycle to break. Imagine working at that company …

Seven Group Holdings (ASX:SVW)

https://sevengroup.com.au/

Despite their holding in Seven West Media that reported poorly yesterday, continues to deliver good results.

Seven Group Holdings (ASX:SVW) H1FY24 results

Beamtree (ASX:BMT)

https://beamtree.com.au/

Is an interesting small cap that has often promised a lot but has yet to really deliver. I’m interested to see what this report contains.

Beamtree (ASX:BMT) H1FY24 results

Beamtree (ASX:BMT) outlook

Seems ok. Not spectacular but they seem to be executing their plan. As I always say, I’m not sure what the market was expecting but price chart suggests not a lot. I’ll keep watching for now.

GUD Holdings (ASX:GUD)

https://gud.com.au/

Are usually a pretty steady performer that don’t get much market coverage. Let’s see how they’re going.

GUD Holdings (ASX:GUD) H1FY24 results

Steady as she goes continues for ASX:GUD.

IDP Education (ASX:IEL)

https://www.idp.com/australia/

I’m interested to see their report. Leading into this the company numbers look good. Commentary from the company has also been positive yet the share price has been slowly on the slide. Before Covid, this was as much of a market darling as you could find.

IDP Education (ASX:IEL) H1FY24 results

If JBH Hi Fi and Nick Scali can rise on profit falls what can this one do on these numbers? Only joking, of course the result is only half the story (sometime much less). It much more about the outlook. Not sure I can find much of an outlook statement in this report. Not helpful!
Perhaps the market was focussing on the potential drop in the IELTS. Nevertheless they seem to have been able to cover for that elsewhere.

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.