A director at Cochlear Limited bought 150 shares at 128.000USD and the significance rating of the trade was 51/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearl...
The independent financial analyst theScreener just awarded an improved star rating to COCHLEAR (AU), active in the Medical Equipment industry. As regards its fundamental valuation, the title receives an improved star rating and now shows 2 out of 4 possible stars. With regard to its market behaviour, it remains unchanged and can be qualified as moderately risky. theScreener considers that these elements allow slightly upgrading its rating to Neutral. As of the analysis date February 22, 2022, th...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
We expect the Australian equity market to deliver low-mid single digit returns next year. Our Dynamic Asset Allocation preference is a mild overweight to Growth assets, given the relative attractiveness of equities to both bonds and credit. In Fixed Income we prefer Global markets over Australia even though the RBA has probably more work to do. In the ASX, the Risk: Reward skew is tilted more positive for Resources than Banks, particularly in H1 as the global economy shows signs of recover...
Health Care Hitting On All Cylinders Global equities remain in a short-term consolidation phase, however we continue to believe the longer-term trend is up and to the right for the MSCI ACWI following the late-October breakout... see chart below. • Market Ignoring Negative Headlines. Global equity markets continue to generally shrug off seemingly bearish headlines surrounding trade, Trump impeachment hearings, and ongoing protests in Hong Kong. This tells us that the good outweighs the bad i...
Despite many Australian-listed healthcare stocks we cover having substantial revenue exposure to the U.S., the latest potential regulatory changes in that market pose a low risk to our fair value estimates. The cost of and access to healthcare is an emotive topic among U.S. voters and hence at the forefront of political agendas. Of relevance to the Australian companies that operate in the U.S. is the draft Lower Health Care Costs Act, or LHCCA, which aims to improve transparency in the healthcar...
Despite many Australian-listed healthcare stocks we cover having substantial revenue exposure to the U.S., the latest potential regulatory changes in that market pose a low risk to our fair value estimates. The cost of and access to healthcare is an emotive topic among U.S. voters and hence at the forefront of political agendas. Of relevance to the Australian companies who operate in the U.S. is the draft Lower Health Care Costs Act, or LHCCA, which aims to improve transparency in the healthcare...
Growth stocks have again out-performed Value since the start of the year supported by declining bond yields and solid EPS growth. In this note, we cast our eye over a selection of 55 Growth stocks constrained by a 12-month forward PE multiple of 18 and long-term consensus EPS growth of 7.5%. We then compare each stock using their cash conversion, asset turnover, reinvestment rate, net debt, EBITDA margin and Good Will. Within the group of stocks with a high PE and strong ea...
The market didn’t like wide-moat-rated Cochlear’s first-half fiscal 2019 net profit, sending the shares down 8% on the day. We think it was a case of reality not meeting lofty market expectations for the six months just gone. Net profit after tax grew a seemingly impressive 14% to AUD 128 million versus a year ago. However, the result flattered to deceive. It benefited from a lower U.S. tax rate and favourable currency movements. At the pretax line, profit was up a still impressive 10%, but ...
The market didn’t like wide-moat-rated Cochlear’s first-half fiscal 2019 net profit, sending the shares down 8% on the day. We think it was a case of reality not meeting lofty market expectations for the six months just gone. Net profit after tax grew a seemingly impressive 14% to AUD 128 million versus a year ago. However, the result flattered to deceive. It benefited from a lower U.S. tax rate and favourable currency movements. At the pretax line, profit was up a still impressive 10%, but ...
We expect 2019 will be challenging. The risks for the domestic economy seem skewed to the downside. An Election Year with a change of Government Likely. Accumulate, but Don’t Over-pay for Defendable Earnings. Private equity bids for NVT and TME have forced us to remove these stocks from the portfolio and we take profit in these names. We think bond yields are past their peak for now and have been gradually building positions in property.
Cochlear has been ordered by the U.S. District Court to pay USD 268 million in damages to the Alfred E. Mann Foundation for Scientific Research and Advanced Bionics due to patent infringement. Cochlear will appeal the judgment with an outcome expected in about two years. Importantly, the damages relate to an expired patent and the ruling should not impact Cochlear’s future business. Cochlear disagrees with the reasons for the damages and will take the case to the U.S. Court of Appeals. Pending...
Cochlear has been ordered by the U.S. District Court to pay USD 268 million in damages to the Alfred E. Mann Foundation for Scientific Research and Advanced Bionics due to patent infringement. Cochlear will appeal the judgment with an outcome expected in about two years. Importantly, the damages relate to an expired patent and the ruling should not impact Cochlear’s future business. Cochlear disagrees with the reasons for the damages and will take the case to the U.S. Court of Appeals. Pending...
A Correction and Not the End of the Cycle. In our view, the equity market sell-off in the past few weeks is a correction and a return to more normal levels of volatility rather than the start of an earnings recession. Indicators such as the yield curve, credit spreads and the Fed’s Loan Officer’s Survey all suggest the cycle still has legs. However, the market is beginning to price an EPS growth slowdown and risks are rising as we come towards the end of the cycle. Moving Back to a More Nor...
We have transferred analyst coverage of wide-moat Cochlear and raised our fair value estimate to AUD 180 per share from AUD 173 per share previously. The increase reflects a lower discount rate of 7.5% from 8.9% previously, largely offset by slightly more conservative, though still buoyant expectations, for future growth in revenue and profitability. Our lower discount rate assumption reflects a reappraisal of the nature of Cochlear’s business relative to the rest of our coverage. Cochlear’...
Cochlear is a global leader in the design and production of hearing implants, with an almost-unblemished track record until the recall of the Nucleus 5 implant in 2011. Notably, the recall was voluntary and was based on adverse results in less than 1% of products issued. Management's conservative decision to voluntarily recall the product preserved customer goodwill, despite the temporarily negative impact to investor sentiment and revenue. After a sharp decline in its stock price in response to...
We have transferred analyst coverage of wide-moat Cochlear and raised our fair value estimate to AUD 180 per share from AUD 173 per share previously. The increase reflects a lower discount rate of 7.5% from 8.9% previously, largely offset by slightly more conservative, though still buoyant expectations, for future growth in revenue and profitability. Our lower discount rate assumption reflects a reappraisal of the nature of Cochlear’s business relative to the rest of our coverage. Cochlear’s...
Wide-moat Cochlear delivered another sound full-year result that met our bottom-line expectations. Reported net profit after tax of AUD 245.8 million was in the middle range of guidance, and just short of our forecast of AUD 250 million. Nonetheless, we were impressed by the improvements in cost of goods, reflecting manufacturing efficiencies, lower warranty cost, and lower repair expenses resulting from the centralisation of repairs globally in Malaysia. This culminated in a gross margin for th...
Giving Back Reporting Season Gains. Hitting Valuation Ceilings. Financials Under Pressure. The sell-off caused declines in short-positioning. Underperformance provides a little more valuation support. Domestic Economy Tracking In-Line with Our Expectations.
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