U.S. stocks retreat slightly

ASX SPI Futures up 11 points

wise-owl.comPowered by

The S&P 500 slipped after closing at a record Friday amid better-than-

forecast jobs data, with losses in health-care and consumer shares

offsetting a rally among energy producers as crude oil climbed.

Steadily falling profits are causing valuations to jump in the benchmark

gauge for American equity, which slipped 0.1 percent to 2,180.89 as of

4 p.m. in New York.

The S&P 500 is trading for 20.5 times reported operating income, the

highest multiple since 2009. The S&P 500 has rallied 19 percent since

reaching a 22-month low in February, while the CBOE Volatility Index

on Friday posted its longest stretch of weekly declines in almost eight

years. The measure of market turbulence known as the VIX rose 1

percent.

Gains in lenders and commodity producers pushed U.K. stocks higher,

after the FTSE 100 Index’s fifth weekly advance in six. The FTSE 100

added 0.2 percent at the close, while the FTSE 250 Index of mid-caps

climbed 0.5 percent, extending its highest level since December.

U.S. Stocks Retreat Slightly Despite Oil Rally

YESTERDAY IN THE INTERNATIONAL MARKETS Global Ticker Daily Change

S&P 500 -0.09%

Dow Jones -0.08%

NASDAQ -0.15%

STOXX 600 +0.04%

FTSE 100 +0.23%

DAX30 +0.63%

Crude Oil +2.92%

Gold -0.23%

The local share market lifted on Monday ahead of a busy week for

earnings after Bendigo & Adelaide Bank was the first lender to report

financial results.

The ASX 200 climbed 40 points, or by 0.7 per cent, to 5538 points after

easing 1.2 per cent last week.

Bendigo and Adelaide Bank (BEN) announced an underlying cash

profit of $439.3 million, a 1.6 per cent increase on the prior

corresponding period. The bank stated that conditions were

challenging as the low interest rate environment impacted loan growth

and customers are encouraged to reduce debt. Shares of BEN closed

4.3 per cent higher.

It appears that Bendigo’s results boosted banks which rose across the

board. Commonwealth Bank (CBA) added 1.4 per cent, while Australia

and New Zealand Banking Group (ANZ) soared 1.8 per cent.

All sectors advanced with the exception of Telecommunications and

Gold stocks. Iron ore miners rose with BHP and RIO closing higher.

Banks Lift ASX after Bendigo’s Earnings Result

THE ASX YESTERDAY IN REVIEW AUS Ticker Change

ASX 200 +0.73%

ALL ORDS +0.72%

CBA +1.38%

BHP +2.25%

WBC +0.83%

RIO +1.85%

HRR +9.38%

ADA -0.34%

MLD +2.31%

DAILY PRICE ACTIVITY AUSTRALIA

ASX200 price action in the past 6 months: Small Caps outperform

UPCOMING DIVIDENDS

Courtesy of http://www.morningstar.com.au/Stocks/UpcomingDividends

Tasty dividends & distributions

DATE CODE COMPANY ANNOUNCEMENTCODE COMPANY NAME EX DIVIDEND PAY DATE AMOUNT FRANKING %

AFI AFIC 09 Aug 2016 30 Aug 2016 14.00 100.00

TAH Tabcorp 10 Aug 2016 20 Sep 2016 12.00 100.00

FRI Finbar Group 11 Aug 2016 01 Sep 2016 4.00 100.00

GSIC22 TIB +1.25% 02-22 3M 11 Aug 2016 22 Aug 2016 34.00 --

GSIO20 TIB +4.00% 08-20 3M 11 Aug 2016 22 Aug 2016 164.25 --

GSIO35 TIB +2.00% 08-35 3M 11 Aug 2016 22 Aug 2016 52.98 --

GSIO40 TIB +1.25% 08-40 3M 11 Aug 2016 22 Aug 2016 31.78 --

GSIU18 TIB +1.00% 11-18 3M 11 Aug 2016 22 Aug 2016 26.18 --

MLT Milton Corporation 11 Aug 2016 02 Sep 2016 9.90 100.00

RIO Rio Tinto 11 Aug 2016 22 Sep 2016 59.13 100.00

WBCHB TR BND 3M 08-23 Q T 11 Aug 2016 22 Aug 2016 108.26 --

WHATS HOT?

DATE CODE COMPANY ANNOUNCEMENT

WHATS NOT?

SGF.asx - steaming hot RWD.asx - cooling down

SG Fleet Group Limited recently announced the

acquisition of UK company Fleet Hire which is

expected to add normalised EBITDA of £4.6m

and creates a broader customer base for the

company. SG Fleet’s revenue rose 9.2 per cent

during H1FY16. The stock has gained 13.7 per

cent year-to-date and is up over 58 per cent

over the past 12 months.

Reward Minerals is a Potash focussed

exploration company. Reward’s share price has

halved over the past 12 months with the market

capitalisation of the company shrinking to just

$44.8 million. Whilst not generating revenue,

the company is reliant on external capital tp

fund its exploration activities. RWD has a

portfolio of advanced exploration projects

located within Australia.

ECONOMIC NEWS

What to look out for:

DATE CODE COMPANY

Nab to publish monthly

survey on business

confidence in Australia.

Chinese Consumer Price

Index (inflation data) due

at 11:30am (AEST)

No major economic news

from the U.S. tonight

NEWSWORTHY

This caught our attention..

DATE CODE COMPANYVirgin Australia Posts $225m Loss for FY16

Virgin Australian Holdings (ASX:VAH) posted a statutory loss of

$225 million for FY16 on the back of $5 billion in revenues.

Revenue increased 5.7 per cent or $272 million resulting in an

underlying profit before tax of $41 million for the airline. The

statutory result was impacted by restructuring costs to “simplify”

and “improve” the business model of Virgin. The costs for these

efficiency activities totalled $440.5 million before tax.

The Group’s cash balance has improved to $1.1 billion excluding

$852 million from the entitlement offer, to be received in August.

Even though the statutory loss overshadows the results, the

Company states they made progress in a number of areas.

Click here to read the full story…

LATEST UPDATE FROM WISE-OWL

Bendigo and Adelaide Bank (BEN)

CODE COMPANY ANNOUNCEMENTEarnings Update: Bendigo and Adelaide Bank (BEN)

Second-tier bank Bendigo and Adelaide Bank (ASX:BEN) released its

financial results for the full year today and announced an underlying cash

profit of $439.3 million, a 1.6 per cent increase on the prior corresponding

period. The bank stated that conditions were challenging as the low interest

rate environment impacted loan growth and customers are encouraged to

reduce debt.

Bendigo and Adelaide Bank posted total income of $1,551.9 million which is

just 0.6 per cent above last year's figure. Net profit after tax was $415.6

million, down 2 per cent compared to the previous corresponding period.

Management announced a fully franked dividend of 34 cents which brings

the full year distribution to 68 cents. The full yea distribution yields 6.8 per

cent based on the last traded price, well above the market average

highlighting the tremendous income opportunity of the stock, despite the

latest share price volatility.

With earnings per share of 90.4 cents for the full year BEN is trading at a

price to earnings (P/E) ratio of just 11 times, well below its peers.

Hold | Cash Profit $439.3m | 6.8% Dividend Yield

ASX:BEN

OUR VIEWS AT A GLANCE

Find below a summary of Wise-owl’s current market views

CODE COMPANY ANNOUNCEMENT

We continue to focus on small-mid cap stocks

There are individual opportunities on the ASX 200

We feel comfortable with our exposure to the gold sector

We see little upside for US stocks in the medium-term

A WISE-OWL PUBLICATION

Presented by Simon Herrmann

DATE CODE COMPANY ANNOUNCEMENT

Wise-owl.com

Discovering the Bluechips of Tomorrow

www.wise-owl.com

Wise owl specializes in identifying emerging companies and financial market trends

very early in their life cycle. The significant capital growth that often follows has earned

wise owl a formidable reputation for discovering ‘the bluechips of tomorrow’. Investors,

executives, and institutions harness this expertise through wise owl’s research, and

capital market services.

Phone: 1300 306 308

Phone (Int.): +61 2 8031 9700

Fax: 1300 304 306

Post: Suite 4.02 Level 4,139 Macquarie St, Sydney, 2000

Email: info@wise-owl.com

Follow us on Twitter | Like us on Facebook | Linkedin

Add me on Linkedin: https://au.linkedin.com/in/herrmannsimon

LICENSE & DISCLAIMER

DATE CODE COMPANY ANNOUNCEMENTDISCLAIMER

This report was produced by wise-owl.com Pty Ltd (ACN 097 446 369), which is an Australian financial services licensee (Licence no. 246670). Wise-

owl may have an investment banking or other commercial relationship with the issuer of any security or financial product in which you have an interest

by acting in various roles including as underwriter, dealer, holder of principal positions, banker, broker, lender, adviser or researcher. Wise-owl may

receive fees, commissions or other remuneration from such activities. Wise-owl.com Pty Ltd has made every effort to ensure that the information and

material contained in this report is accurate and correct and has been obtained from reliable sources. However, no representation is made about the

accuracy or completeness of the information and material and it should not be relied upon as a substitute for the exercise of independent judgment.

Except to the extent required by law, wise-owl.com Pty Ltd does not accept any liability, including negligence, for any loss or damage arising from the

use of, or reliance on, the material contained in this report. This report is for information purposes only and is not intended as an offer or solicitation

with respect to the sale or purchase of any securities. The securities recommended by wise-owl.com carry no guarantee with respect to return of

capital or the market value of those securities. There are general risks associated with any investment in securities. Investors should be aware that

these risks might result in loss of income and capital invested. Neither wise-owl.com nor any of its associates guarantees the repayment of capital.

WARNING: This report is intended to provide general financial product advice only. It has been prepared without having regard ed to or taking into

account any particular investor’s objectives, financial situation and/or needs. All investors should therefore consider the appropriateness of the advice,

in light of their own objectives, financial situation and/or needs, before acting on the advice. Where applicable, investors should obtain a copy of and

consider the product disclosure statement for that product (if any) before making any decision.

DISCLOSURE: Wise-owl.com Pty Ltd and/or its directors, associates, employees or representatives may not effect a transaction upon its or their own

account in the investments referred to in this report or any related investment until the expiry of 24 hours after the report has been published.

Additionally, wise-owl.com Pty Ltd may have, within the previous twelve months, provided advice or financial services to the companies mentioned in

this report.