Current

Australian Infrastructure Fund (AIX)

DPU cut with large rights issue, but HDF upside

AIX is making a 1-for-2 rights issue at $1.10, fully underwritten but non-renounceable. It raises a net $203m, about 50% each from institutions and retail. Record date is 23 June. Institutions already subscribed for $106m gross. The retail offer is from 26 June to 10 July. AIX also declared an estimated final FY09 DPU of 5c, payable around 31 August. Guidance for the FY10 DPU is for just 10c. Henceforth, DPU will match operating cash flow and dividend payments. AIX's airport passenger traffic this half remains weak.
Read Report.. »  |  Company Profile.. »

Previous

AGL Energy Limited (AGK)

Waiting for the right opportunity

Now that the NSW budget is out with confirmation of large deficits for at least the next two years the sale of the retail energy assets will come to the fore. The three electricity retailers for sale - Energy Australia, Integral Energy and Country Energy - service about 4.5 million customers. The Tripodi travelling troupe traipsed around the globe looking for potential buyers but realistically the logical buyers reside in Sydney - AGL Energy and Origin Energy. Both are conservative and it is unlikely bids for the retail energy assets will be aggressive. AGK has also successfully refinanced 2009 and 2010 debt maturity obligations. New facilities totalling $800m in two tranches now mature in June 2012.
Read Report.. »  |  Company Profile.. »

CSL Limited (CSL)

Talecris is off the agenda back to the fundamentals

Talecris says 'based on a careful analysis of the situation and all alternatives available, it believes that termination of the merger agreement is in the best interest of all parties'. CSL will buy back 54.8m shares representing 9% of the current shares on issue. This is the maximum a company can do without going to shareholders for approval.
Read Report.. »  |  Company Profile.. »

QBE Insurance Group Limited (QBE)

Strong A$ creating havoc with guidance

The strength of the A$ is proving a real nuisance. The strength or volatility in the A$ is playing havoc with QBE's sensitive Gross Written Premium (GWP) and Net Earned Premium (NEP) guidance. It impacts the underwriting profit, insurance profit/margin and ultimately NPAT estimates. Currency movements impact premium income when translated into A$. With operations in 45 countries approximately 76% of QBE GWP revenue is derived in currencies other than A$. A 5% movement in A$ against all currencies is estimated to impact projected FY09 NPAT by around $80m. The largest exposures are to US$ and £Stg. QBE's FY09 GWP and NEP growth forecasts are based on A$/US$ of 0.68 and A$/£Stg 0.45. The A$ is currently near 0.81US$ and 0.50 versus £Stg.
Read Report.. »  |  Company Profile.. »

Telstra Corporation Limited (TLS)

Peacemaker in the NBN minefield

New CEO David Thodey and Chairman Catherine Livingstone are faced with a quandary of massive proportions. Firstly, do they reaffirm the forecasts of Sol Trujillo for FY10 or establish a new earnings and free cash flow blue print? Secondly, how do they repair the damage the abrasive dynamic duo Trujillo and McGauchie have done to relations with the government while negotiating a way through the complex and emotional NBN minefield without Telstra shareholders suffering more collateral damage?
Read Report.. »  |  Company Profile.. »

© Copyright Huntleys' Investment Information Pty. Limited (HII) (a wholly owned subsidiary of Aspect Huntley Pty Limited), 2006. All rights reserved. Australian Financial Services Licence no. 240892. No material may be reproduced, except as allowed by the Copyright Act, without the prior written approval of HII. Some of the material provided by HII is copyright and is published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO").

DISCLAIMER: While the above-mentioned advice and information are based on information, which HII consider reliable, its accuracy and completeness cannot be guaranteed. This report is made without consideration of any specific clients investment objectives, financial situation or particular needs. Accordingly, the client should, before acting on the advice, consider the appropriateness of the advice, having regard to the client's objectives, financial situation and needs. Those acting upon such information do so entirely at their own risk. For a copy of HII's Financial Services Guide, please go to http://www.aspecthuntley.com.au/FSG or phone HII on (02) 9256 8000 to request a copy.

DISCLOSURE: The directors and associated persons or entities of HII may have an interest in the securities discussed in this report.