FYI | May 11 2012
This story features ANZ GROUP HOLDINGS LIMITED, and other companies. For more info SHARE ANALYSIS: ANZ
Daily update on share prices and consensus price targets.
By Rudi Filapek-Vandyck, Editor FNArena
How is my personal market indicator going? Very well, thanks for asking. As banks share prices ran above consensus price targets in the opening week of May, Icarus started issuing warning signals and we did publish a few stories on the website. Plus I went on Financial TV last week again raising the subject of share market weakness becoming more likely than not.
No extra commentary is needed I presume now that we've seen the ASX200 lose close to 4% in only a few sessions? (Paying subscribers: please note the first of your e-booklets explains the how and why behind this market indicator).
Let's have a look at what investors selling and the pay-out of one interim dividend has done to the share price of ANZ Bank ((ANZ)), arguably the hardest hit among the Big Four in Australia. From valuation-stretching to all of a sudden looking a lot more attractive, that's probably how the change in ANZ bank shares is best summed up. At yesterday's closing price, there's now a gap of no less than 10.7% in terms of share price vis-a-vis consensus target and that's on top of an implied dividend yield of 6.5-6.8% for the year ahead (we're in between two fiscal years). Note analysts also added some extras to their targets which adds to today's implied upside potential.
Investors are witnessing the true meaning of how a pullback does refresh the investment proposition on offer.
ANZ Bank has now -of course- disappeared from Icarus' radar. Investors should note both Westpac ((WBC)) and CommBank ((CBA)) are still near their targets, while National Australia Bank ((NAB)) remains the laggard.
No less than nine stocks have now attracted Icarus' attention as they all move closer and closer to target. These companies include Amcom Telecom ((AMM)), Campbell Bros ((CPB)) and Spark Infra ((SKI)). Note TPG Telecom ((TPM)) is there too, as is Envestra ((ENV)).
Amongst the stock already trading above target we find Ardent Leisure ((AAD) -another dividend play- as well as ASG Group ((ASZ)) -yet another dividend play- and DUET ((DUE)) and CommBank… you get the idea. Invocare ((IVC)) is there too.
The Bottom Fifty is chock-a-block with resources stocks: Aquarius Platinum ((AQP)), BlueScope Steel ((BSL)), Resource Equipment ((RQL)), et cetera. I know, BlueScope is strictly taken not a resources company, but you get the idea.
Investors should consider the information and data are provided for research purposes only.
Stocks <3% Below Consensus
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Stocks Above Consensus
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Top 50 Stocks Furthest from Consensus
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To see the full Icarus Signal, please go to this link
Technical limitations
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CHARTS
For more info SHARE ANALYSIS: AMM - ARMADA METALS LIMITED
For more info SHARE ANALYSIS: ANZ - ANZ GROUP HOLDINGS LIMITED
For more info SHARE ANALYSIS: BSL - BLUESCOPE STEEL LIMITED
For more info SHARE ANALYSIS: CBA - COMMONWEALTH BANK OF AUSTRALIA
For more info SHARE ANALYSIS: ENV - ENOVA MINING LIMITED
For more info SHARE ANALYSIS: IVC - INVOCARE LIMITED
For more info SHARE ANALYSIS: NAB - NATIONAL AUSTRALIA BANK LIMITED
For more info SHARE ANALYSIS: WBC - WESTPAC BANKING CORPORATION