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Dividend Stocks Shares

Xcel Energy Pushing Through Its Regulatory Agenda; Raising Fair Value Estimate

On July 2, Xcel filed a $343 million rate increase request that we think will be one of its most important and hotly debated rate requests ever in Colorado, its largest jurisdiction. The proceedings during the next six months will test whether regulators are willing to raise customer rates to pay for Xcel’s clean energy and safety investments along with supporting Colorado law that requires Xcel to supply 100% carbon-free electricity by 2050.

Rate settlements in Xcel’s

The Colorado outcome could affect Xcel’s five-year, $24 billion investment plan and management’s 5%-7% annual earnings growth target in the near term. That difference accounts for about 15% of Xcel’s rate increase request. Rate settlements in Xcel’s three smallest jurisdictions are in line with our estimates. In New Mexico, Xcel settled for a $62 million rate increase ($88 million request) and 9.35% allowed ROE (10.35% request). In Wisconsin, Xcel settled for a $45 million combined electric and gas rate increase in 2022 and a $21 million combined rate increase in 2023 based on a 9.8% allowed ROE in 2022 and 10% allowed ROE in 2023. In North Dakota, Xcel settled for a $7 million rate increase ($13 million revised request) and 9.5% allowed ROE (10.2% request).

Company Profile
Xcel Energy manages utilities serving 3.7 million electric customers and 2.1 million natural gas customers in eight states. Its utilities are Northern States Power, which serves customers in Minnesota, North Dakota, South Dakota, Wisconsin, and Michigan; Public Service Company of Colorado; and Southwestern Public Service Company, which serves customers in Texas and New Mexico. It is one of the largest renewable energy providers in the U.S. with one third of its electricity sales coming from renewable energy.

(Source: Morningstar)
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Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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IPO Watch

The share price of Vulcan (ASX: VUL) is being closely monitored. Following the spin-off IPO Update

Money bag with the word IPO (Initial public offering; stock market launch) and a calculator. The first public sale of shares of a joint stock company. Business and finance concept

Vulcan’s non-core, battery metal projects will be taken over by it. Kuniko will become a zero-carbon copper, nickel, and cobalt producer with properties in Scandinavia as a result of this deal.

The first offering allowed interested individuals to purchase one of 12.5 million Kuniko shares for 20 cents each. A 1:4 pro rata priority offer allowed Vulcan owners to purchase about 26.93 million Kuniko shares for 20 cents each.

The spin-off was first announced in April by the corporation. The stock price of Vulcan then dropped as a result of the announcement.

Kuniko has raised $7.88 million through its prospectus offerings to fund its operations. Kuniko plans to go public on the ASX on August 23rd.

Vulcan’s stock is now trading currently on 30th July 2021 at $9.08. The Vulcan’s recent ASX performance has been outstanding. Vulcan shares are now worth 222 percent more than they were at the beginning of 2021. They’ve also increased by 1,682 percent over the same period last year.

Vulcan Energy Resources Ltd’s current normalized EBIDTA is recorded at (889695), P/E ratio is ($0.08) and EPS is marked at (0.09). And its 1 year change is reported at +2007.53%. Vulcan has a market capitalisation of roughly $969 million at its current share price.

Company Profile

Vulcan Energy Resources Ltd (ASX: VUL) was founded by Dr. Frencis Wedin on 2nd May 2018 and it’s listed on the ASX under the ticker KNI. Vulcan Energy Resources Limited is an energy metals exploration firm established in Australia. In Germany’s Upper Rhine Valley, the company is working on a combined geothermal and lithium extraction project. The Company’s zero-carbon lithium extraction method is powered by sustainable geothermal energy and generates renewable energy as a by-product. From its combined geothermal and lithium resource in Germany’s Upper Rhine Valley, Vulcan Energy Resources Limited hopes to develop a battery-quality lithium hydroxide chemical product with a net zero carbon footprint. It is established with the intention of exploring and developing battery metals.

 (Source: FactSet)

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Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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LICs LICs

Whitefield ltd Joins LIC Raisers

Whitefield, which has a $500 million investment portfolio, is anticipated to utilise the funds to Re launch the LIC, which is now only thinly traded due to its size.

Whitefield is managed by stockpicker Angus Gluskie’s Sydney-based White Funds Management. Commonwealth Bank, CSL, Westpac, NAB, and ANZ were its top holdings as of June 30.

On 14th July Morning, Whitefield stock was put on hold. In the year ended June 30, the company’s investment portfolio returned 25.6 percent before fees and taxes.

Company Profile

Our solutions support our clients’ mission critical business operations by providing proprietary and curated data and analytics to help drive informed decisions and improved outcomes. In an ever-increasing digital world, data is found everywhere. Data can describe the past or be of the moment.  Data fuels analytics that can anticipate the future.  And, data is most valuable when it drives action that moves an organization towards its goals.  Leading organizations use data and data-driven platforms to create a competitive edge. Our solutions derive data-driven insights that help clients target, grow, collect, procure and comply–even in changing times.

(Source: Fact Set)

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Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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Global stocks Shares

After a strong second quarter, Colfax raises its full-year outlook for 2021, as well as its fair value estimate

Our fair value increase reflects Colfax’s strong results, an improved near-term outlook, and time value of money, partially offset by the implementation of a probability-weighted change in the U.S. statutory tax rate in our model.

Colfax delivered stellar 59% year-over-year revenue growth, as sales rebounded strongly from last year’s depressed levels due to initial pressure from the coronavirus outbreak. Colfax’s revenue was also up 9% from prepandemic levels in the second quarter of 2019, with improvement in both segments. On an organic sales-per-day basis, second-quarter sales increased 44% year over year in fabrication technology and 54% year over year in the medical technology segment.

Colfax continues to grow its reconstructive business through M&A, aiming to grow the platform to $1 billion in revenue within the next five years. The company announced the acquisition of Mathys Bettlach for roughly $285 million. Mathys is a Swiss-based orthopedics company whose portfolio includes products for artificial joint replacement and synthetic bone replacement. Colfax expects the business to generate roughly $150 million in sales and $15- $20 million in EBITDA in 2022.

Company Profile
Colfax is a diversified technology firm that produces welding equipment and medical devices. Following the sale of its air and gas handling business in 2019, Colfax’s remaining portfolio is organized into two segments: fabrication technology and medical technology. Fabrication technology is a leading manufacturer of equipment and consumables used in welding, cutting, and joining applications, mostly marketed under the ESAB brand name. The medical technology segment makes medical devices, including orthopedic braces, reconstructive implants, and other products used for rehabilitation, physical therapy, and pain management. The company generated roughly $3.1 billion in revenue in 2020.

(Source: Morningstar)
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Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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ipo IPO Watch

Glenmark Life Sciences IPO subscribed 1.43 times on day 1, retail portion booked 2.73 times

The size of the IPO has been cut to 1.5 crore equity shares after the business raised Rs 454 crore from anchor investors on July 26, a day before the sale was scheduled to commence.

Retail investors’ reserved portion has already been subscribed 5.16 times, while non-institutional investors’ portion has been subscribed 85 percent.

Qualified institutional buyers have placed bids for 10,540 equity shares out of a total of 42.42 lakh equity shares reserved for them.

Glenmark Pharma’s subsidiary seeks to collect Rs 1,513.6 crore through a public offering that includes a fresh issue of Rs 1,060 crore and a promoter offer to sell 63 lakh equity shares.

The offer’s price band has been set at Rs 695-720 per equity share, with the offer closing on July 29.

Company Profile

Glenmark Pharmaceuticals Limited is an Indian pharmaceutical company headquartered in Mumbai, India that was founded in 1977 by Gracias Saldanha as a generic drug and active pharmaceutical ingredient manufacturer; he named the company after his two sons. The company initially sold its products in India, Russia, and Africa. The company went public in India in 1999, and used some of the proceeds to build its first research facility. Saldanha’s son Glenn took over as CEO in 2001, having returned to India after working at PricewaterhouseCoopers. By 2008 Glenmark was the fifth-biggest pharmaceutical company in India.

(Source: Factset)

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Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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Global stocks Shares

Domino’s Performs Positive Results for the 2nd Quarter

Sustained strength abroad led us to revisit our international unit growth assumptions, pushing us to the low end of management’s 6%-8% guidance over the next few years (6.4%) and raising our fair value estimate to $410 per share from $386. However, we view the market’s reaction as overblown, with the shares trading up 14.5% at the time of writing against our 6.2% fair value estimate lift. The shares currently trade about 30% ahead of our fair value estimate.

In our view, the most impactful earnings discussion pertained to labor market pressure, with management indicating that restaurant margins (24.5%, up 60 basis points sequentially) were largely attributable to understaffing, as even the largest operators are struggling to attract workers in a historically tight hiring environment. The restaurant workforce remains about 10% smaller than its pre-pandemic level, and operators have increasingly leaned on wage hikes, benefits, signing bonuses, and operational efficiencies to fully staff stores. While we expect the best-capitalized operators with strong restaurant margins (like Domino’s) to best weather the storm, we forecast midterm labor costs 150 basis points higher than 2019 (normalized) levels, at 30.5% of restaurant sales.

The firm’s attention to car-side carryout looks strategically sound, with Domino’s using the channel to compete with quick-service drive-thrus without having to pursue more expensive real estate. The channel offers incremental sales, pushes the firm’s digital mix higher, and requires minimal involvement at the point of sale, alleviating pressure.

Company’s Future Outlook

It is expected that Domino’s to benefit from a shift toward lower cost fulfillment channels like the carryout business (and car side carryout) while continuing to automate noncore tasks like closing tills, managing inventory, and benefiting from optimized labor spending via predictive scheduling. Nonetheless, we remain encouraged by the firm’s long-term upside, with our revised forecast calling for 9.5% average system sales growth, 6% unit growth, and 11.5% EPS growth over the next five years.

Company Profile

Domino’s Pizza is a restaurant operator and franchiser with more than 17,800 stores across 90 countries. The firm generates revenue through the sales of pizza, wings, salads, and sandwiches at company-owned stores, royalty and marketing contributions from franchise-operated stores, and its network of 26 dough manufacturing and supply chain facilities, which centralize purchasing, preparation, and last-mile delivery for more than 6,800 units in the U.S. and Canada. With roughly $16 billion in 2020 system sales, Domino’s is the largest player in the global pizza market, ahead of Pizza Hut, Papa John’s, and Little Caesars.

(Source: Factset)

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Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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LICs LICs

MA1 Suspended from trading as the Restructure to an ETMF Continues

For the half-year ended December 31, 2020, the gross portfolio return before all fees and expenses was roughly 44.36 percent.

MA1 shareholders unanimously approved the company’s restructuring as an Exchange Traded Managed Fund on May 10th (ETMF).

MA1 was taken off the market on May 28th and will be delisted on June 1st.

Units in the newly formed ETMF Monash Absolute Active Trust (Hedge Fund) are being issued to shareholders on an in-specie basis, with the new ticker MAAT slated to begin trading on the ASX on June 10th.

The ETMF will use a Single Unit (dual registry) Structure, allowing unit holders to buy and sell units on or off the market.

Company Profile

In 2012, Monash Investors was established by one of Australia’s most experienced fund managers in Simon Shields, the previous head of equities at both UBS and CFS, and Shane Fitzgerald a senior equity analyst from UBS and JPMorgan. The firm was set up to manage money in a way that both Simon and Shane felt was simply smarter than riding the share market up and down, instead, attempting to achieve targeted positive returns of double digits p.a. after fees, over a full market cycle while seeking to avoid loss of capital over the medium term. Importantly, it was the experience gained across multiple investment styles and in seeing the pitfalls in managing very large pools of capital that shaped the way the Fund is managed today.

(Source: Factset)

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Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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LICs LICs

AFIC share price hits all time high

Over the shoulder view of and stock broker trading online while accepting orders by phone. Multiple computer screens ful of charts and data analyses in background.

According to AFIC, the Commonwealth Bank of Australia (ASX: CBA) is the largest current position, followed by BHP Group Ltd (ASX: BHP), CSL Limited (ASX: CSL), Wesfarmers Ltd (ASX: WES), and Westpac Banking Corp. (ASX: WBC).

These top five positions, however, are supplemented by dozens of other ASX shares. And, with the ASX 200 index lately reaching new highs, AFIC would have benefitted from a rising tide lifting its whole portfolio (evidenced by its NTA per share growth).

This is most likely why the AFIC share price has reached an all-time high today. It isn’t the only one. Other LICs in the AFIC mould are also on the rise.

At the present AFIC share price, the organization has a market value of $9.62 billion and a trailing dividend yield of 3.05 percent (or 4.36 percent when AFIC’s full franking credits are considered).

The net tangible assets (NTA) per share increased to $7.45 per share in June (after tax). This is a significant increase over the previous month’s share price of $6.19. This means that for every AFIC share purchased, buyers receive $7.45 in other assets.

Over the last two decades, the AFIC has returned 5.23 percent in capital gains and 6.18 percent in fully franked dividends.

Company Profile

The Australian Foundation Investment Company Ltd (AFIC) is a Listed Investment Company in Australia (ASX: AFI) and it is one of the oldest on the ASX established in 1928.  It aims to provide shareholders with attractive investment returns by growing stream of fully franked dividends and growth in investment of capital. AFIC measures its performance through 2 measures namely portfolio return and the shareholders return. AFIC is presently Australia’s largest LIC, managing a portfolio worth around $8 billion for its stockholders.

(Source: Factset)

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Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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ipo IPO Watch

Glenmark Life Sciences raises Rs 454 crore from cornerstone investors ahead of its first public offering.

According to a regulatory filing, the business has agreed to distribute 63,06,660 equity shares to 19 cornerstone investors at a price of Rs 720 per share, for a total of Rs 454 crore.

Amongst those cornerstone investors are HSBC Global Investment Funds, Government Pension Fund Global, Oaktree Emerging Markets Equity Fund LP, Copthall Mauritius Investment Ltd-ODI account, Societe Generale-ODI, Kuber India Fund, and Reliance General Insurance Company.

Glenmark Pharma would issue new equity shares worth up to Rs 1,060 crore and sell up to 63 lakh equity shares in the first public offering (IPO). The issue will begin on July 27 and end on July 29, with a price range of Rs 695-720 per share.

The proceeds from the new issuance will be utilised to cover the promoter’s outstanding purchase consideration for the API business spin-off as well as fund capital expenditure requirements. The IPO will raise Rs 1,513.6 crore at the top of the pricing band.

About Company

Glenmark Life Sciences, a subsidiary of Glenmark Pharmaceuticals NSE -3.62 percent, is a dominant developer and manufacturer of high-value, non-commoditized active pharmaceutical ingredients (APIs) in chronic therapeutic areas such as cardiovascular disease, CNS disease, pain management, and diabetes. APIs for gastrointestinal disorders, anti-infectives, and other therapeutic fields are also manufactured and sold by the firm.

Source : Factset

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Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

Categories
LICs LICs

MEC has released the results for the first half of the year

investment stockbroker risk analysis using multiple devices. Financial analysis using phone app and laptop. Market trading profit.

At a dividend rate of 5 cents per share, the corporation had dividend coverage of more than five years before the dividend was paid. Its earnings for 2020 were 4.6 cents which is almost double to previous year i.e. 2.8 cents. The relative P/E reported to 104.5% by 2020. And the market capital of MEC is not available.

Its portfolio performance since inception is 13.64% p.a. and market share price is currently market at $ 1.225 AUD while trading price is $1.100 as on 26th July 2021. Morphic Ethical Equities Funds NTA is marked at $16.07.21, the Pre-tax $1.4121 per share and the Post-tax $1.3134 per share for the year 2021.

Company Profile

Morphic Ethical Equities Fund (MEC) was established on 02 May 2017. Morphic Asset Management is a global equity investment firm managing the Morphic Global Opportunities Fund co-founded by Jack Lowenstein and Chad Slater. Morphic Ethical Equities Fund is an Australian Listed Investment Company (LIC) (ASX: MEC). Morphic Ethical Equities Fund is an Australian Listed Investment Company (LIC) (ASX: MEC). The Morphic Ethical Equities Fund aims to give investors with a chance to build wealth while remaining assured that they are doing it without harming the environment, people or society.

 (Source: fnarena)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.