Good Evening,

Welcome to the ASX News Daily Recap.

Lost track of what happened on the market today?

Don’t stress. We’re here to catch you up.

Here’s a sample of what you may have missed:

1. ✅ Life360 & G.U.D Holdings The Big Winners

2. 👇 Michael Burry Going Short Again?

3. 🚘 BMW's Electric Armour

4. 🏡 Buffet’s Housing Bet

5. 🩸 CSL Bounces Back

The Recap

Healthcare Rebounds After

Hattrick of Impressive Earnings

The ASX200 shot out of the gate early after a glut of earnings report pre-market open, which overall had more winners than losers. Markets did dip in the afternoon, with the ASX ending the day up 0.9% to 7,305.0pts.

China’s economy continues to dominate the global news, with the Chinese Yuan sliding to its weakest level since November. China reported lower-than-expected industrial and retail sales, both missing forecasts. While on the topic of reporting, China said it would pause publishing its youth jobless rates as it irons out “complexities” in the data after it recorded a 21% read in June. The Central Bank unexpectedly cut a key interest rate today in a bid to boost its ailing economy.

Back at home, it was another day dominated by earnings reports. CSL, Cochlear, and ProMedicus were just a small number of companies whose share price rose after reporting full-year earnings. This helped the Healthcare sector dominate the day, rising by 3.2%. Tech was the other stand-out, increasing by 1.8%. REITs (-0.5%) and Materials (-0.3%) fell for the day, with the Iron ore price briefly slipping below $US100 a tonne to a June low. The gold price fell to a 5-month low of $US1906.39.

ASX200 Stock Snapshot

Wall Street

Tech stocks had their best day in two weeks on Monday, driving both the S&P500 (+0.5%) and NASDAQ (+1.05%) indexes higher, as August continues to be a lower trading volume month after a busy reporting season in July. Treasury yields wavered before ticking higher as high-grade corporate bond sales weighed on prices.

Tesla stock fell 1.32% after cutting prices in China for Model-Y long-range and performance vehicles from August 14th. Nvidia’s stock rose 7.1% today, rebounding from its worst week last week in 11 months. The company will report Q2 earnings on August 22nd.

Home Depot, Cisco and Walmart are the most prominent players to report earnings this week that are worth watching.

Economic News

• Aussie wages increased by 0.8% in Q2, below market expectations of a 0.9% gain.

• Japan’s GDP grew by an impressive 6% in Q2, the strongest growth since Q4 2020, exceeding the forecast of 2.9%. Net exports contributed 1.8% to the figure.

• China posted lower-than-expected industrial and retail sales, which missed forecasts. Industrial output grew 3.7% in July, below estimates of 4.4%. Retail sales rose 2.5%, below forecasts of 4.5%

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Markets

Index & Commodity Prices

Bond Prices

ASX By Sector

ETF Watch

Earnings

Company Earnings Summary

A quick snapshot of the companies who reported earnings today

• Cochlear reported that conditions have been strong across most markets, which are expected to rise again in FY24, forecasting high single-digit growth in cochlear implant units.

• ProMedicus ticked to an all-time high share price of $72.51 after reporting a 36% increase in Net Profit. The company either secured or extended eight hospital contracts with a lifetime value of $100 million during FY23.

• Treasury Wines said its cheaper end of the market was a drag, with the Treasury Premium Brands business suffering a 5.4% drop in earnings. Demand, however, for Luxury wine was strong and is expected to stay consistent over the next year.

Quick Singles

🪃 Local News

• NAB reported $1.9 billion in cash earnings in the June quarter, ahead of expectations. A surprise $1.5 billion share buyback helped push its share price 1.3% higher to $28.70.

• Lake Resources reported successful testing at its Kachi project in Argentina, saying it had “proved the concept of extraction and injection to support the production of high purity battery-grade lithium carbonate” Shares ended the day up a whopping 16.7% to $0.245, as it continues to be one of the most volatile stocks in the ASX200.

• Pointerra went into a trading halt today pending an announcement regarding a capital raising.

🌏 Around The Globe

• Michael Burry, renowned for his role in the ‘Big Short,’ holds a pessimistic outlook on the market. His company, Scion Asset Management, has invested in put options worth $739 million against the Invesco QQQ Trust ETF (QQQ.O) and put options worth $886 million against the SPDR S&P 500 ETF (SPY.P) to hedge against potential losses. Additionally, the firm has sold off its positions in Alibaba Group and JD.com, two major players in the Asian market.

   

• According to its June quarterly filing, Warren Buffett's Berkshire Hathaway bought more than $US700 million (A$1.1 billion) in housing companies D.R. Horton Inc, NVR Inc, and Lennar Corp. Buffett's Berkshire picked up nearly 6 million shares of DHI, 11,000 shares of NVR, and almost 153,000 shares of Lennar.

• SoftBank Group is in talks to buy the remaining 25% stake it doesn’t own in chip designer Arm, which will go public next month at a $60B-$70B valuation.

• Nikola recalled all its electric trucks due to a battery defect causing a fire risk. This led to a 6.6% drop in share price.

• Lyft will start serving advertising to customers on its app. for the first time this week. Adverts. will appear while consumers wait for their taxi when they are matched with a driver and for the duration of the journey.

• Inflation is hitting some places more than others, as Nigeria’s transport fares nearly doubled in June. The average fare paid by commuters for bus journeys within a city per trip increased by 98% to 1,285 nairas ($1.65) in June from 650 nairas in May.

₿ Crypto Corner

• FTX's founder Sam Bankman-Fried (SBF), is set to go to prison as a judge has granted federal prosecutors' plea to revoke his bail due to accusations of witness tampering.

• On Sunday, the individual responsible for the popular token BALD transferred approximately $12 million in ether back to the Ethereum network. There are rumours that the creator of the Memecoin BALD may be affiliated with FTX or Alameda, and some speculate that it could even be SBF himself.

Movers and Shakers

✅ Biggest Gainers

• Life360 (360) - rose by 12.3% today after upgrading guidance for the calendar year 2023 to $US9 million - $US14 million from the previous guidance of $US5 million - $US10 million. Q2 Revenue was $70.8 million, a 45% Y/Y increase thanks to a 57% rise in subscription revenue after pushing through price increases in April for Android users. 62,000 global net subscribers were added during Q2, compared with 73,000 in the previous quarter. The company reported a net loss of $4.4 million; however, Adj. EBITDA was $5.7 million, with a positive operating cash flow of $3.7 million.

• G.U.D Holdings (GUD) - isn’t seeing any slowdown in vehicle repairs, reporting a lift in statutory profits of 252% to $98.6 million in FY23, thanks mainly due to the acquisition of Auto Pacific Group in 2021. Underlying Profit rose by 32.9%, and revenue was up 25.4%, with the company's reporting stating that independent mechanics workshops continued to have strong bookings. Shares ended Tuesday 14.9% higher to $11.74.

🔻Biggest Fallers

• Seek's (SEK) share price dropped by 4.2% due to weaker guidance for FY24, with revenue projected to be between $1.18 billion and $1.26 billion, and Adj. NPAT between $220 million and $260 million. The company anticipates an increase in unemployment and reduced demand for labour in the ANZ market. While the Asia market is expected to be mixed, overall demand is predicted to be in line with FY23. Despite increasing revenue by 10% from FY22, job ad volumes were lower than expected, offset by higher ad yields.

• Temple & Webster (TPW) fell by 4.5% after reporting a decline in sales (-7.2%) and Profit (-30%) during FY23. The company said that trade in the second half of the year, particularly the last quarter, was much improved, with revenue growth from repeat and growth customers. Furthermore, trade has gotten off to a bumper start in FY24, with revenue up 16% until August 13th. TPW is targeting annual sales of $1b+ within 3-5 years at an EBITDA Margin of +15%.

Deep Dive

CSL Bounces Back:
Full-Year Profit Up by 10%

Australia’s largest healthcare company CSL announced a 10% increase in underlying profits for the full year, reaching $2.61 billion ($4 billion). This growth was driven by the increasing sales of their therapeutic products, Privigen and Hizentra.

CSL reported an FY23 NPATA of $2.61 billion, up 20% at constant currency (cc). Revenue was $13.31 billion, up 31% cc. The company’s Behring unit performed strongly, with Plasma collections volumes up 31% and now at record levels.

Financial Highlights vs. FY22:

• Revenue - $13.31 billion, +31% (cc)

• NPAT - $2.19 billion, -3%

• NPATA - $2.61 billion, +10%

• EPS $5.41, +6%

• Total Full-year Dividend - US$2.36, up 6%

An improvement in costs helped drive Profit higher. The cost of collecting Plasma, which includes donor compensation and labour, declined ~14% over the previous year and ~17% down from the peak in March 2022.

The core CSL Behring business of immunoglobulin-based treatments, impacted during the pandemic, showcased a robust rebound. CSL Behring’s sales saw an uptick of 12%, reaching $US9.29 billion. This includes a significant 21% leap in immunoglobulin sales, driven by Privigen and Hizentra, and notable sales surges in albumin, especially in China, as well as haemophilia therapies.

To further boost collections, CSL plans to enhance the efficiency of its plasma collection and manufacturing units and introduce new technology for isolating immunoglobulin and albumin, another essential plasma product.

FY24 Outlook:

CSL expects FY24 NPATA to be approximately $2.9 billion - $3.0 billion constant currency.

What The?

From time to time, we find something electrifying we have to share

Electric vehicles are not just about reducing emissions and being eco-friendly but also about being a literal fortress on wheels.

BMW recently unveiled the i7 Protection, the world's first all-electric armoured sedan.

Based on the latest 7 Series and i7 sedan models, this armoured sedan has undergone the VR9 treatment, a certification that highlights its ballistic protection.

Photos of the vehicle showed its exterior peppered with bullet holes. Still, its inside remained untouched, emphasising the car's exceptional safety measures. While the window panes might display evidence of gunfire, the vehicle's interior remained untouched.

BMW didn’t just stop at bullets; the i7 Protection is designed to withstand various threats, including hand grenades and even drone attacks with explosives. For an additional layer of security, BMW integrated an intercom system, allowing the driver to communicate with the outside world without compromising safety.

For those accustomed to the finer things in life, the i7 Protection boasts heating and ventilation for its seats, an optional massage function, and even an Executive Lounge option for a reclined relaxation experience. A cool box keeps your beverages chilled to perfection, and electric sunblinds allow a peek into the outside world without revealing too much.

Safety and luxury features aside, the sedan's real feather in its cap is its sustainability. Though currently exclusive to Europe, it's only a matter of time before other automakers tap into the growing demand for armoured EVs.

A Little Extra

📉 Going Down?

Top 10 shorted stocks on the ASX - as of August 9th

Mesoblast fell from 7.55% to 5.67% from the 8th to 9th of August, dropping out of the top 20. The share price more than halved on August 4th after an update from the FDA.

1. Core Lithium (CXO) - 10.72%

2. Flight Centre (FLT) - 10.28%

3. IDP Education (IEL) - 9.39%

4. JB Hi-Fi (JBH) - 8.05%

5. Select Harvest (SHV) - 7.98%

6. Syrah Resources (SYR) - 7.92%

7. Pilbara Resources (PLS) - 7.55%

8. Brainchip (BRN) - 7.47%

9. AMA Group (AMA) - 7.06%

10. Lake Resources (LKE) - 6.96%

📊Broker Ratings

What do the brokers have to say?

• Bendigo & Adelaide Bank (BEN) - Downgraded to Neutral from Buy (Citi)

• Beach Energy (BPT) - Downgraded to Hold from Add (Morgans)

• GWA Group (GWA) - Upgrade to Outperform from Neutral (Macquarie)

• REA Group (REA) - Upgraded to Neutral from Underperform (Macquarie)

• Rumble Resources (RTR) - Downgraded to Speculative Hold from Speculative Buy (Bell Potter)

📅 Economic Calendar

Data to keep an eye on this week

Reader Review

DISCLAIMER: None of the information provided in this newsletter should be constituted as financial advice. This newsletter is strictly for educational purposes only. It should not be taken as investment advice or a solicitation to buy or sell assets or make financial decisions. Please do your research.