International stock news

Rss Today on Proactive AU

2014-09-02

Australia’s All Ords gains as RBA keeps rates on hold

 
Stronger building approvals and the RBA decision to keep rates on hold has sent the All Ords up 0.5% to 5,656.8 points. The Shanghai Stock Exchange Composite Index rose 1.1% to 2,260.08 points. The U.S. market was closed for the Labor Day holiday providing no overseas lead.
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Rss Today on Proactive UK

2014-09-02

Broker spotlight; Tesco, Weir, Johnson Service, Reneuron, Edge Resources...

 
Tesco (LON:TSCO) has receivied more downgrades in the wake of its latest profit warning and shock dividend cut. Societe Generale suggests the grocery chain is facing the scale of emergency that hit French supermarket Carrefour four years ago and the warning revealed a tangible deterioration in fundamentals. The broker has cut its earnings forecast for Tesco by 16% for the coming three years but cautions that margins may not yet have reached bottom. The new management team will be under intense pressure to turn around the business and quickly take appropriate strategic decisions, it adds. Options include a sale of all of its assets in eastern Europe and to keep its only two growth drivers in South Korea and Thailand. Sell with a 190p target is its view. Santander adds that it was not surprised by the news of Tesco’s dividend cut.  To hold the full year dividend would cost £1.2bn, but the fact that the interim has been cut so drastically and the new CEO’s arrival a month ahead of plan underlines the urgency of the situation.  Cutting capex guidance gives further room for manoeuvre on pricing, especially as recent data shows how Tesco’s sales decline is getting worse. The broker’s rating drops to ‘hold’ from ‘buy’. Deutsche Bank has come out firmly in favour of Weir (LON:WEIR) over IMI (LON:IMI) in a review of the UK’s large engineers. Weir is now a rated ‘outperform’ (from ‘neutral’), while IMI gets downgraded to ‘neutral’ (from ‘outperform’). Target prices are now 1500p (vs 1640p) for IMI while Weir increases to 3060p (2540p). The broker said analysis suggests that 66% of Weir's end markets could offer scope for positive surprises against none at IMI.  Johnson Service (LON:JSG) has published a strong set of interims, with the full year 2014 result now expected to be slightly ahead of current market expectations., says Investec.  Textile Rental is once again the key driver of performance, reflecting good underlying growth and the earnings enhancing acquisition of Bourne. The group has also announced a 25% rise in the interim dividend, another indicator of the increasing confidence Buy says the broker. House broker finnCap says Seeing Machines (LON:SEE) results were also better than expected driven by DSS unit sales into the mining industry, annual revenue grew 43% to A$16.8mln. The results were followed by news of a major Tier-1 OEM automotive alliance and an initial order from GM for up to 500,000 vehicles. The company is well on track to deliver our exciting growth forecasts and we reiterate our 12p target price and buy rating. Edge Resources (LON:EDG) has continued to make headway, but the real progress for FY’15 will start with the drilling programme in October/November (2014) says Sp Angel. The broker applauds the start of the drilling programme, cash management and the focus on debt reduction but has kept its 19p (C$0.35) target price. Cenkos notes that ReNeuron (LON:RENE) has published a confident AGM statement highlighting the fact that the first patients have been dosed in both the stroke (Phase II) and critical (lower) limb ischemia (Phase I) clinical trials. These are important milestones and ReNeuron has also confirmed the timelines for the completion of both trials, highlighting several key clinical milestones expected to occur over the next 18-24 months.   The broker has retained its buy rating and sees an important number of value inflection points between now and the end of 2015, when six-month follow up clinical data from the Phase II stroke trial for ReN001 should become available.
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Rss Today on Proactive US

2014-09-02

C-COM's iNetVu systems used again in Japan to aid in emergency communications

 
C-COM Satellite Systems (CVE:CMI) says that several of its mobile auto-deploying satellite antenna systems have recently been deployed in the western part of Japan to aid with emergency communications in an area hit by massive landslides. 
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