Icarus Signal New Entries For Today

This story features NINE ENTERTAINMENT CO. HOLDINGS LIMITED. For more info SHARE ANALYSIS: NEC

Daily update on share prices and consensus price targets.

By Rudi Filapek-Vandyck

As equity markets post another Jackson Hole meeting continue their rally, and with some fierce responses to positive earnings surprises this reporting season, it was only a matter of time before Icarus would cast its warnings over some of the true stand-outs in the Australian share market; those companies that managed to blow away analysts and investors with their financial results and attract lots of buying interest in consequence.

The most obvious to mention within this context is Domino's Pizza ((DMP)). Yes, the results were fan-tas-tic. But as the shares continue their climb, the one year forward looking Price Earnings ratio has now ballooned to above 20. This for a company whose pizza's and pasta's admittedly fit in well with the consumer's drive towards more bang for every buck, but… above 20?

Similarly, Lycopodium ((LYL)) said thank you to all loyal shareholders this reporting season through a much better than expected financial performance. Its share price performance post the recent FY11 release has been nothing short of stellar, but now that Macquarie's price target is within reach, maybe it's time to start thinking beyond the next short term extension to this month's rally?

We could make similar remarks about Envestra ((ENV)) and about ARB Corp ((ARP)), but I am sure you, today's reader, is getting the picture. Not all positive performances this reporting season will bring riches and high returns in the longer run.

There are at present 17 stocks trading in the vicinity of their target and overall churn is pretty high. Investors should note how some companies end up in this group with price targets being reduced, such as Port Bouvard ((PBD)) and Count Financial ((COU)). The latter has this morning asked for a trading halt in what is widely anticipated as being the precursor to a take-over bid for the company.

Six companies rose to join the group of stocks trading above target, and quite a few are being supported by take-over action. Try Charter Hall Office ((CQO)), Coal and Allied ((CNA)) and Northern Energy ((NEC)). There are now 23 stocks trading above target.

Investors should consider the information and data are provided for research purposes only.

Stocks <3% Below Consensus

Order Symbol Current Price($) Consensus Price($) Difference(%) 1 FGL $ 4.99 $ 5.00 0.12% 2 RSG $ 1.56 $ 1.56 0.32% 3 COU $ 1.06 $ 1.07 0.66% 4 PTM $ 4.01 $ 4.07 1.37% 5 RRL $ 2.93 $ 2.97 1.47% 6 ARP $ 8.52 $ 8.68 1.82% 7 PBD $ 0.05 $ 0.05 2.04% 8 CEU $ 0.54 $ 0.55 2.42% 9 SBM $ 2.04 $ 2.10 2.94%

Stocks Above Consensus

Order Symbol Current Price($) Consensus Price($) Difference(%) 1 CQO $ 3.37 $ 3.37 – 0.09% 2 DMP $ 7.00 $ 6.97 – 0.50% 3 CNA $ 122.59 $ 121.00 – 1.30% 4 TSO $ 0.53 $ 0.52 – 1.90% 5 ENV $ 0.72 $ 0.66 – 7.41% 6 NEC $ 2.00 $ 1.85 – 7.50%

Top 50 Stocks Furthest from Consensus

Order Symbol Current Price($) Consensus Price($) Difference(%) 1 RQL $ 0.54 $ 0.86 59.81% 2 COK $ 0.42 $ 0.66 59.04% 3 THG $ 0.48 $ 0.75 57.89% 4 ROC $ 0.30 $ 0.47 57.67%

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