Media

Fully valued with pockets of value. Such is Citi’s view on small miners in Australia. Small industrials have thus become the new focus.

The federal election and uncertainty over the proposed Resources Tax were blamed for a below expectations 1Q result for WA Newspapers.

Seek has shocked the market with a surprise profit downgrade to its education divisions but not all brokers see a problem.

Private equity player Blackstone suggests there is value on offer in the Australian market and Moelis and Co has offered a list of companies it sees as attractive to such buyers.

Superseded MySpace is proving a drag for New Corp, but one broker speculates there might be an opportunity for News to lever value off a Yahoo-AOL merger.

Morgan Stanley suggests Diversified Resources stocks are about to enjoy upgrades to market forecasts. Plus a rally for copper. Plus the latest views on media stocks in Australia.

While ad spend has bounced back post-GFC to the benefit of media stocks, managers remain cautious and brokers suggest investors should be selective.

Having emerged from the Macquarie stable, Citi suggests investors are not yet recognising the value in Southern Cross Media.

Brokers are now making assessments of how the FY10 earning season will fare and what FY11 might bring.

Australian companies begin reporting FY10 results next week. FNArena provides some useful tips for the small investor – what to look out for, and what traps not to fall into.