It was a busy week for the S&P/ASX 200 (INDEXASX:XJO) with the market ending up almost 200 points, or 3.3% after a shaky start on Monday. It seems that investors grabbed onto the latest news from Greece and snubbed their nose at the Chinese market crash.
One theme we're seeing consistently are so-called 'confessions' or information releases where companies let investors know that they're going to come in either above or below their previous forecasts.
There was plenty to keep investors busy and here are the biggest highlights from the past five days of trading:
- Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) took a hit
Falling oil prices caught up with Santos and Woodside during the past three months, smashing their revenues. Thanks to its delayed pricing contracts, Woodside was worse off and I expect investors will be waving goodbye to their 7% dividend later this year.
Oil Search Limited (ASX: OSH) hasn't released its quarterly update yet, but I suspect its investors will be in for a similar update.
- Jumbo Interactive Ltd (ASX: JIN) hit the jackpot
Jumbo expects to achieve record Total Transaction Value and revenue this year. On the downside, Net Profit After Tax (NPAT) will come in 7% below last year as a result of a loss in its German lottery division, which is in its first year of operation.
- One Foolish contributor investigated the Costa Group Holdings Limited (ASX: CGC) IPO
The biggest turn-off for Ry Padarath was the fact that investors in Costa are owning the business and logistics chain, while the actual land the business is based on will continue to be owned by the Costa family and will attract rent of $20 million per annum.
Debt of $142 million also looks quite high at roughly 3x NPAT. Over 50% of Initial Public Offerings (IPOs) trade below their issue price in their first year out, so this may be one to revisit if shares take a beating.
- Small-cap Orthocell Ltd (ASX: OCC) soared after an update
The biomed stock released a positive market update indicating that a peer-reviewed article involving a similar treatment to its own appeared in the Journal of Tissue Engineering and Regenerative Medicine. The article provided support for a similar approach to that offered by Orthocell Ltd.
(Investors looking for more information on medical research stocks can find my earlier series on the topic here)
- Primary Health Care Limited (ASX: PRY) downgraded earnings
Investors weren't impressed, with Primary's earnings coming in at least 10% below previously forecast. Instead of posting a 5-12% increase in profit, Primary shareholders can actually expect a 5% decrease in Earnings Per Share for 2015-2016.
While the stock ended the week down at $4.79, it appears to lack upside and investors may be better off looking elsewhere.
- Selling cars in Australia is good business
Toyota, Ford and Holden might not think so, but automotive dealer AP Eagers Ltd (ASX: APE) is making a killing. The company announced today that its NPAT would be up 29% compared to 2014.
- Nothing perpetual about Perpetual Limited? (ASX: PPT)
One Foolish writer took an in-depth look at the company and found it to be expensive, even without its recent weak quarter. Over around the past five years, Perpetual's Funds Under Management (FUM) have grown just $2.5 billion despite a bull market of record length, and there is a convincing case the company is a sell.
- Shale oil costs BHP Billiton Limited (ASX:BHP) billions
A US$2.8 billion dollar write-down will be booked against the company's US oil and gas assets this year, while the company further notified investors that they were cash flow positive at or above US$60 per barrel.
Combined with the competition in iron ore intensifying, this raises some interesting questions about the profitability of the business and how sustainable BHP's share price and dividends really are.
- How you could have made a 750% profit in 12 months
Or if you want to get technical, 746.67% – that's how much shares in 1-Page Ltd (ASX: 1PG) have increased in the past year. The increase appears to be justified, with the company recently adding two Fortune 500 companies (with a combined total of more than 300,000 employees) to its list of customers.
There were also significant updates at Select Harvests Limited (ASX: SHV), Somnomed Limited (ASX: SOM), CSR Limited (ASX: CSR) and small-cap software stock Prophecy International Holdings Limited (ASX: PRO).
