George Beyrouthi’s editorial: 4/09/2014 PMI, what is it (part3)? Purchasing Managers' Indexes (PMI) are economic indicators derived from monthly surveys of private sector companies. The two principal producers of PMIs are Markit Group, which conducts PMIs for over 30 countries worldwide, and the Institute for Supply Management (ISM), which conducts PMIs for the US. Markit Group and the Institute for Supply Management separately compile The Purchasing Managers' Index (PMI) surveys on a monthly basis by polling businesses that represent the makeup of the respective sector. The surveys cover private sector companies, but not the public sector. A key feature of the PMI surveys is that they ask only for factual information. They are not surveys of opinions, intentions or expectations and the data therefore represent the closest [2] one can get to “hard data” without asking for actual figures from companies. [2] Questions asked relate to key variables such as output, new orders, prices and employment. Questions take the form of up/down/same replies. For example, “Is your company’s output higher, the same or lower than one month ago?” [2] Respondents are asked to take expected seasonal influences into account when considering their replies. [2] For each main survey question, respondents are asked to provide a reason for any change on the previous month, if known. This assists not only the understanding of variable movement but also in the seasonal process when X12 cannot be used. [2] Source: http://en.wikipedia.org/wiki/Purchasing_Managers_Index Please see our disclaimer below. For further information call us to discuss. (07) 5630 4141 OR 0411 259 526
Transcript
George Beyrouthi’s editorial: 4/09/2014
PMI, what is it (part3)? Purchasing Managers' Indexes (PMI) are economic indicators derived from monthly surveys of private sector companies. The two principal producers of PMIs are Markit Group, which conducts PMIs for over 30 countries worldwide, and the Institute for Supply Management (ISM), which conducts PMIs for the US. Markit Group and the Institute for Supply Management separately compile The Purchasing Managers' Index (PMI) surveys on a monthly basis by polling businesses that represent the makeup of the respective sector. The surveys cover private sector companies, but not the public sector.
A key feature of the PMI surveys is that they ask only for factual information. They are not surveys of opinions, intentions or expectations and the data therefore represent the closest[2] one can get to “hard data” without asking for actual figures from companies.[2] Questions asked relate to key variables such as output, new orders, prices and employment. Questions take the form of up/down/same replies. For example, “Is your company’s output higher, the same or lower than one month ago?”[2] Respondents are asked to take expected seasonal influences into account when considering their replies.[2] For each main survey question, respondents are asked to provide a reason for any change on the previous month, if known. This assists not only the understanding of variable movement but also in the seasonal process when X12 cannot be used.[2] Source: http://en.wikipedia.org/wiki/Purchasing_Managers_Index
Please see our disclaimer below. For further information call us to discuss. (07) 5630 4141 OR 0411 259 526
DOW 17,078.28 10.25 0.06% If you wish to receive our reports on a daily basis, please visit our website at www.fssecurities.com.au and subscribe. It is important to recognise that not every ––recommendation will suit everyone. You need to determine what your risk appetite is before you trade. Do you need a hand? Please call us. We have a lot of material in our daily report. You will find:
- Overnight summary
- Review on Gold, Silver and Crude markets
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o US market
o Commodities
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Our predictions? What I predicted (at end January 2014):
- XJO (ASX 200) has about 200 points further to
go (up) in January the XJO was 5190
Next 3 months (at end May 2014) - XJO (ASX 200) Resistance around 5600 (+100),
Support around 5100 (-300)
- Gold to trade between 1250 and 1350 US/Oz (no
change from prediction in Jan 2014)
- The Australian dollar to remain weak and hover
around the 88 to 93 US cents (no change)
Next 3 months (at end July 2014)
- XJO (ASX 200) Resistance around 5750 (+100),
Support around 5350 (-300)
- Gold to trade between 1250 and 1350 US/Oz
- The Australian dollar to remain 88 to 95 US cents
Offshore Markets & Businesses Overnight and from around the globe we start with Wall Street as US stocks closed mixed in narrow trade. The Dow Jones Industrial Average index was almost unchanged from previous close and finished 10 points higher at 17,078. The S&P 500 ended lower by less than 0.1% and finished at 2000.
European major markets rose 1.2% and finished at 3218. In London, the FT100 index was up 0.65% at 6874. In Japan, the Nikkei Index rose 0.38% at 15,728. In China, the Shanghai index rose 0.94% to 2408. On the commodities; Gold a short time ago was trading at $1269 US/Oz up $4 overnight. Silver, closed this morning at $19.21 steady. Crude Oil this morning was at 95.09 US/barrel steady from this time yesterday. Copper, the world’s economic barometer was at 313 c/lb steady overnight Iron ore, which is important for our miners such as BHP, RIO, Atlas Iron and Fortescue, was down another 1.2% at $85.70 US /tonne. The price of iron ore has slumped to five-year low. This is more than 35% drop since January. On the currencies, The Aussie dollar was at 93.45 US cents, 97.88 Japanese yen, 71.08 Euro cents and 56.77 British pence. These are intra banks rates. On our market yesterday, The benchmark ASX200 index ended flat at the close. It fell 2 points or less than 0.1% to 5656. Losses in the mining sector was offset by gains in the big banks and Telstra. Official gross domestic product (GDP) figures showed the Australian economy had grown at a better-than-expected rate, although the full-year rate was below long-term trend The best performers amongst the leaders: SUN and QBE both were up nearly 1.5%. The worst performer: BHP down 1.9% On the economic news: Australia retail sales, trade balance; US trade balance, ADP employment, factory orders; UK Bank of England rates, asset purchase target, inflation target; Japan Bank of Japan monetary policy statement; Germany factory orders, Markit PMI. Locally, shares are poised to open flat.. The SPI futures contract was down 5 points a short time ago indicating a flat start this morning. Yahoo, Bloomberg, SMH, ninemsn and AFR
Global announcements Updated on Thursday, September 04, 2014
The full report has now shifted to Our Trades and Our Picks Report for subscribers!!!
FS Securities Picks On 29/08/2014 (updated):
James Hardie Industries (JHX) $12.79 On 27/08/2014 (updated):
AWE Limited (AWE) $1.77
On 26/08/2014 (updated):
Western Areas Limited (WSA) $ 4.72 On 18/08/2014 (updated): Oil Search Limited (OSH) $9.44 - Net profit up 34% to US$152.5 million On 13/08/2014 (new): Domino's Pizza Enterprises Limited (DMP) $23.78 – DMP announced a full-year net profit after tax result of $45.8 million, a 50.4 per cent rise on the prior year On 01/08/2014 (updated):
Kathmandu Holdings Limited (KMD) $3.12 - colder weather in July will help the company recover a significant portion of the shortfall in sales revenue On 31/07/2014 (new): APA Group (APA) $7.48- APA will develop a new pipeline in the Goldfields region of Western Australia On 28/07/2014 (updated): Flight Centre Travel Group Limited (FLT) $46.96- the expected profit result is 9%-10% above the record $343.1million profit achieved in 2012/13 On 24/07/2014 (new):
Macquarie Group Limited (MQG) $60.00 - the bank’s 2015 financial year result will be in line with last year’s annual net profit of $1.27 billion. On 22/04/2014 (updated on 26/05/2014):
CSR Limited (CSR) $3.40
FS Securities Trades On 02/09/2014: Rio Tinto limited (RIO) $62.60 – Iron Condor strategy On 01/09/2014: Commonwealth Bank of Australia (CBA) $81.22 – Iron Condor strategy On 28/08/2014: Macquarie Group Limited (MQG) $58.00 – Iron Condor strategy On 25/08/2014: S&P/ASX 200: INDEX (XJO) $5,630 – Iron Condor strategy On 20/08/2014: CSL Limited (CSL) $74.40 – Iron Condor strategy –UPDATED – rolled over to the next month
Note: the following picks are not necessarily trades that FS Securities are currently trading. They are offered as suggestions only. Please check with your broker first before trading.
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Indices and Commodities
GOLD: Gold prices rose on Wednesday, as lingering
tensions over Ukraine and a weaker dollar prompted bargain hunting and short covering after bullion prices earlier fell to a 2-1/2-month low. Spot gold was up 0.3 percent at $1,269.80 an ounce by 2:06 p.m. EDT (1806 GMT), after having earlier hit $1,261.19 - its lowest since June 17. U.S. COMEX gold futures for December delivery settled up $5.30 at $1,270.30 an ounce.
(Source: CNBC)
SILVER: Silver futures for December delivery increased 0.2
percent to $19.189 an ounce on the Comex.
(Source: Bloomberg.com)
CRUDE OIL: WTI for October delivery advanced $2.66, or 2.9
percent, to settle at $95.54 a barrel on the New York Mercantile Exchange. The contract fell 3.2 percent yesterday to its lowest close since Jan. 14. Volume was about 14 percent above the 100-day average. WTI traded at a premium of $7.23 to WTI on the ICE, compared with $7.46 yesterday. U.S. crude inventories may have dropped 1 million barrels last week, according to a Bloomberg survey before tomorrow’s Energy Information Administration report. It would be a third weekly decline. The weekly petroleum report, which normally is released every Wednesday, was delayed until tomorrow due to the Labor Day holiday. Crude supply fell to 360.5 million barrels in the week ended Aug. 22, the lowest since Jan. 31, the Energy Department’s statistical arm said last week. Four-week average oil demand reached 19.8 million barrels in the period ended Aug. 22, the highest level for this time of year since 2008. “The U.S. economy continues to lead the global rebound, and we are seeing some very nice growth out of the U.S.,” said Chad Mabry, an analyst at MLV & Co. in Houston.
(Source: bloomberg.com) *Disclaimer: The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts.
Advances, Declines and Volume
Analysts rating changes: Stocks to watch (source SMH) BHP Billiton and Rio Tinto could earn as much $US800 million between them for at least three years when they unlock a “secret” supply of 200,000 tonnes of copper at their Escondida copper mine in Chile, Deutsche Bank says. Canaccord Genuity has reiterated a “buy” recommendation on TFS Corp and raised its target price to $3.44 a share, while Argonaut Equity Research also reiterated its “buy” on the stock with a target price of $2.65 a share. RBC Capital Markets retained a “sector perform” on ports and rail operator Asciano with a $6.25 a share price target and said upside from here would be “dependent mostly on success of a port sale”.
FS Securities recommendations for US market
Commodities and FX
ASX sectors and equities
FS Securities details stock picks
Ask for a copy if you would like to see the list.
ASX weekly market advances and declines Average Advances over total rose over 30 days from 50.5% recently to 50.5% (52/ 51.5 / 48 / 50/ last 4 weeks)
Gainers and Most Active by volume
NOTES: ASX stocks show the daily changes.
if shown in red, they indicate a fall.
Best and worst performing stocks (source:smh.com) Last
Day before
Day before
Sectors Performance
By looking at the above table readers will notice where the direction of the market has been on the day.
Last from low: Blue = closed in the top half of the day’s range.
Net Change is the daily movement in points.
% Change represents the daily movement in %.aud
WEEK ON WEEK CHANGE (and over two weeks as well)
OVERSEAS INDICES, FX AND COMMODITIES
WEEK ON WEEK CHANGE (and over two weeks as well) AUSSIE MARKET
Mini charts - Commodities and US markets
THE GRAPHS SHOW HOW FROM AN INDEX OF 100 SOME 52 WEEKS AGO THE VARIOUS INDICES OR COMMODITIES HAVE MOVED.
Sectors
THE ABOVE GRAPHS SHOW HOW FROM AN INDEX OF 100 SOME 52 WEEKS AGO THE VARIOUS ASX SECTORS HAVE MOVED.
4 1/09/2014 TTS TATTS GROUP LIMITED 100 0.055 0.135 4.066 3.32 Final 5 1/09/2014 SGN STW COMMUNICATIONS GROUP LIMITED 100 0.033 0.086 6.615 1.3 Interim 6 1/09/2014 BCI BC IRON LIMITED 100 0.15 0.32 11.47 2.79 Final 7 1/09/2014 MYT MIGHTY RIVER POWER LIMITED 0 0.074 0.123 5.862 2.1 Final 8 1/09/2014 TOL TOLL HOLDINGS LIMITED 100 0.15 0.28 4.69 5.97 Final 9 1/09/2014 FMG FORTESCUE METALS GROUP LTD 100 0.1 0.2 4.796 4.17 Final
10 1/09/2014 FWD FLEETWOOD CORPORATION LIMITED 100 0.02 0.04 1.923 2.08 Final 11 1/09/2014 HFA HFA HOLDINGS LIMITED 0 0.054 0.087 5.548 1.57 Final 12 1/09/2014 VLW VILLA WORLD LIMITED. 100 0.09 0.15 6.608 2.27 Final 13 2/09/2014 BLD BORAL LIMITED. 100 0.08 0.15 2.722 5.51 Final 14 2/09/2014 COH COCHLEAR LIMITED 20 1.27 2.54 3.501 72.55 Final 15 2/09/2014 AMC AMCOR LIMITED 0 0.235 0.43 3.765 11.42 Final 16 2/09/2014 TWE TREASURY WINE ESTATES LIMITED 0 0.07 0.13 2.544 5.11 Final 17 2/09/2014 PNA PANAUST LIMITED 0 0.03 0.06 2.62 2.29 Interim 18 2/09/2014 AGK AGL ENERGY LIMITED 100 0.33 0.63 4.468 14.1 Final 19 2/09/2014 CVW CLEARVIEW WEALTH LIMITED 100 0.02 0.038 4.318 0.88 Final 20 2/09/2014 BLX BEACON LIGHTING GROUP LIMITED 100 0.014 0 0 1.18 Final 21 2/09/2014 AHD AMALGAMATED HOLDINGS LIMITED 100 0.27 0.42 4.251 9.88 Final 22 3/09/2014 ASX ASX LIMITED 100 0.899 1.781 4.751 37.49 Final 23 3/09/2014 ILU ILUKA RESOURCES LIMITED 100 0.06 0.1 1.124 8.9 Interim 24 3/09/2014 LHC LIFEHEALTHCARE GROUP LIMITED 100 0.075 0.075 3.289 2.28 Final 25 3/09/2014 SKT SKY NETWORK TELEVISION LIMITED. 0 TBA 0.236 3.986 5.92 Final 26 3/09/2014 BPT BEACH ENERGY LIMITED 100 0.02 0.03 1.846 1.625 Final 27 3/09/2014 PGH PACT GROUP HOLDINGS LTD 65 0.095 0.095 2.48 3.83 Final 28 3/09/2014 SND SAUNDERS INTERNATIONAL LIMITED 100 0.04 0.06 5.941 1.01 Final
Dividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders.[1]
When a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business (called retained earnings), or it can be distributed to shareholders. There are two ways to distribute cash to shareholders: share repurchases or dividends.
[2][3] Many corporations retain a portion of their earnings and pay the remainder as a dividend.
2 1/09/2014 BCI BC IRON LIMITED 100 0.15 0.32 11.47 2.79 Final 3 3/09/2014 CTN CONTANGO MICROCAP LIMITED 50 0.046 0.086 7.257 1.185 Final 4 3/09/2014 CYG COVENTRY GROUP LIMITED 100 0.11 0.22 6.984 3.15 Final 5 3/09/2014 ACK AUSTOCK GROUP LIMITED 100 0.01 0.02 6.667 0.3 Final 6 1/09/2014 SGN STW COMMUNICATIONS GROUP LIMITED 100 0.033 0.086 6.615 1.3 Interim 7 1/09/2014 VLW VILLA WORLD LIMITED. 100 0.09 0.15 6.608 2.27 Final 8 3/09/2014 SWM SEVEN WEST MEDIA LIMITED 100 0.06 0.12 6.469 1.855 Final 9 3/09/2014 DCG DECMIL GROUP LIMITED 100 0.085 0.13 6.436 2.02 Final
10 3/09/2014 MLD MACA LIMITED 100 0.075 0.14 6.422 2.18 Final 11 3/09/2014 SND SAUNDERS INTERNATIONAL LIMITED 100 0.04 0.06 5.941 1.01 Final 12 1/09/2014 MYT MIGHTY RIVER POWER LIMITED 0 0.074 0.123 5.862 2.1 Final 13 3/09/2014 MIN MINERAL RESOURCES LIMITED 100 0.32 0.62 5.833 10.63 Final 14 3/09/2014 WLL WELLCOM GROUP LIMITED 100 0.11 0.19 5.672 3.35 Final 15 1/09/2014 HFA HFA HOLDINGS LIMITED 0 0.054 0.087 5.548 1.57 Final 16 3/09/2014 PNW PACIFIC STAR NETWORK LIMITED 0 0.009 0.016 5.517 0.29 Final 17 3/09/2014 MRM MERMAID MARINE AUSTRALIA LIMITED 100 0.07 0.125 5.411 2.31 Final 18 3/09/2014 WOR WORLEYPARSONS LIMITED 21 0.51 0.85 5.17 16.44 Final 19 1/09/2014 FMG FORTESCUE METALS GROUP LTD 100 0.1 0.2 4.796 4.17 Final 20 3/09/2014 ASX ASX LIMITED 100 0.899 1.781 4.751 37.49 Final 21 1/09/2014 TOL TOLL HOLDINGS LIMITED 100 0.15 0.28 4.69 5.97 Final 22 3/09/2014 FPS FIDUCIAN PORTFOLIO SERVICES LIMITED 100 0.05 0.091 4.55 2 Final 23 4/09/2014 VTG VITA GROUP LIMITED 100 0.027 0.046 4.483 1.035 Final 24 2/09/2014 AGK AGL ENERGY LIMITED 100 0.33 0.63 4.468 14.1 Final 25 2/09/2014 CVW CLEARVIEW WEALTH LIMITED 100 0.02 0.038 4.318 0.88 Final 26 2/09/2014 AHD AMALGAMATED HOLDINGS LIMITED 100 0.27 0.42 4.251 9.88 Final 27 3/09/2014 SFC SCHAFFER CORPORATION LIMITED 100 0.13 0.25 4.167 6 Final 28 3/09/2014 AMP AMP LIMITED 70 0.125 0.24 4.082 5.88 Interim
Dividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders.[1]
When a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business (called retained earnings), or it can be distributed to shareholders. There are two ways to distribute cash to shareholders: share repurchases or dividends.
[2][3] Many corporations retain a portion of their earnings and pay the remainder as a dividend.
2 2/09/2014 AGK AGL ENERGY LIMITED 100 0.33 0.63 4.468 14.1 Final 3 2/09/2014 AHD AMALGAMATED HOLDINGS LIMITED 100 0.27 0.42 4.251 9.88 Final 4 2/09/2014 AMC AMCOR LIMITED 0 0.235 0.43 3.765 11.42 Final 5 3/09/2014 AMP AMP LIMITED 70 0.125 0.24 4.082 5.88 Interim
6 3/09/2014 ASX ASX LIMITED 100 0.899 1.781 4.751 37.49 Final 7 3/09/2014 ACK AUSTOCK GROUP LIMITED 100 0.01 0.02 6.667 0.3 Final 8 3/09/2014 AUI AUSTRALIAN UNITED INVESTMENT COMPANY LIMITED 100 0.175 0.32 3.471 9.22 Final 9 3/09/2014 AVJ AVJENNINGS LIMITED 100 0.02 0.02 3.077 0.65 Final
10 1/09/2014 BCI BC IRON LIMITED 100 0.15 0.32 11.47 2.79 Final 11 3/09/2014 BPT BEACH ENERGY LIMITED 100 0.02 0.03 1.846 1.625 Final 12 2/09/2014 BLX BEACON LIGHTING GROUP LIMITED 100 0.014 0 0 1.18 Final 13 3/09/2014 BHP BHP BILLITON LIMITED 100 0.664 1.311 3.575 36.67 Final 14 2/09/2014 BLD BORAL LIMITED. 100 0.08 0.15 2.722 5.51 Final 15 2/09/2014 CVW CLEARVIEW WEALTH LIMITED 100 0.02 0.038 4.318 0.88 Final 16 2/09/2014 COH COCHLEAR LIMITED 20 1.27 2.54 3.501 72.55 Final 17 3/09/2014 CTN CONTANGO MICROCAP LIMITED 50 0.046 0.086 7.257 1.185 Final 18 3/09/2014 CYG COVENTRY GROUP LIMITED 100 0.11 0.22 6.984 3.15 Final 19 3/09/2014 DCG DECMIL GROUP LIMITED 100 0.085 0.13 6.436 2.02 Final 20 3/09/2014 DSH DICK SMITH HOLDINGS LIMITED 100 0.08 0.08 3.493 2.29 Final 21 3/09/2014 DUI DIVERSIFIED UNITED INVESTMENT LIMITED 100 0.075 0.14 3.535 3.96 Final 22 3/09/2014 FPS FIDUCIAN PORTFOLIO SERVICES LIMITED 100 0.05 0.091 4.55 2 Final 23 1/09/2014 FWD FLEETWOOD CORPORATION LIMITED 100 0.02 0.04 1.923 2.08 Final 24 1/09/2014 FMG FORTESCUE METALS GROUP LTD 100 0.1 0.2 4.796 4.17 Final 25 1/09/2014 HFA HFA HOLDINGS LIMITED 0 0.054 0.087 5.548 1.57 Final 26 3/09/2014 ILU ILUKA RESOURCES LIMITED 100 0.06 0.1 1.124 8.9 Interim
27 1/09/2014 IFM INFOMEDIA LTD 100 0.019 0.038 3.468 1.09 Final 28 3/09/2014 JIN JUMBO INTERACTIVE LIMITED 100 0.015 0.03 2.23 1.345 Final
Dividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders.[1] When a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business (called retained earnings), or it can be distributed to shareholders. There are two ways to distribute cash to shareholders: share repurchases or dividends.[2][3] Many corporations retain a portion of their earnings and pay the remainder as a dividend.
A dividend is allocated as a fixed amount per share. Therefore, a shareholder receives a dividend in proportion to their shareholding. For the joint stock company, paying dividends is not an expense; rather, it is the division of after tax profits among shareholders. Retained earnings (profits that have not been distributed as dividends) are shown in the shareholder equity section in the company's balance sheet - the same as its issued share capital. Public companies usually pay dividends on a fixed schedule, but may declare a dividend at any time, sometimes called a special dividend to distinguish it from the fixed schedule dividends.
Dividends are usually paid in the form of cash and shares in the company (either newly created shares or existing shares bought in the market.) Further, many public companies offer dividend reinvestment plans, which automatically use the cash dividend to purchase additional shares for the shareholder. Source: From Wikipedia, the free encyclopaedia.
Did you know that FS Securities can help you with any Real Estate needs? Why deal with us? Because we can help you provide a bridging loan at a reasonable rate and provide you which choices in properties across Australia for investment.
We learnt that in Sydney the property median price has escalated by 12% above the all-time high level. In Melbourne it has moved up by 8 to 9% above the all-time high. In Queensland the median price is still 7 or 8% below the all-time high. RP Data Rismark figures recently showed Sydney home prices rose 2.5 per cent last month and 5.2 per cent in the last quarter. Melbourne also rose 2.4 per cent in a month and 5 per cent in the quarter.
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GENERAL ADVICE DISCLAIMER this document has been prepared for the general information of investors and does not take into account the investment objectives, financial situation and particular needs of any particular person. Persons intending to act on information in this document should seek professional advice to confirm that the investments or strategies mentioned are appropriate in the light of their particular investment needs, objectives and financial circumstances prior to taking any action. Email transmission cannot be guaranteed to be secure or error free and there is a risk messages may be corrupted, intercepted or lost in transmission. Therefore we do not accept liability for any viruses, errors or omissions in the contents of this message or attachments which arise as a result of email transmission. Statements contained in this email are general only and do not take into account the particular needs, objectives, financial circumstances or investment preferences of any person. George Beyrouthi is an Authorised Representative (AR# 315 563) of FS Securities (QLD) Pty Ltd AFSL# 410 183.
