Sunset Strip - E.L. & C. Baillieu Limited · LAST SUNSET STRIP FOR 2016 &SEE YOU IN 2017 !!! MERRY...

Aussie Afternoon Institutional Market Wrap Mathan Somasundaram – Baillieu Holst Quant Strategy

23 December 2016 [email protected] – 612 9250 8947

Sunset Strip Market Snapshot after close & Intraday S&P 200 Chart

LAST SUNSET STRIP FOR 2016&SEE YOU IN 2017!!! MERRY CHRISTMAS

AND HAPPY NEW YEAR!!!

� MARKET SUMMARY MACRO/STOCK EVENTS: Tonight – UK GDP; US New Home Sales, University of Michigan Sentiment. Tomorrow – None.

CHART OF THE DAY: The chart below shows the trend in Chinese inflationary outlook. China’s official inflation rate -- still near its 2 percent average of the past four years -- masks a surge in living costs felt by its most-influential citizens. That’s why Hao Hong, chief strategist at Bank of Communications International Holdings Co. in Hong Kong, is looking at surging housing and factory prices, as well as weakening yuan forwards and collapsing bonds, to more effectively gauge inflation. As the consumer-price index rose 2.3 percent in November from a year earlier, the producer-price index jumped 3.3 percent and new home costs in first-tier cities surged almost 27 percent. "China’s official consumer price index is definitely understated,” Hong said. The currency is weakening with "persisting momentum, and the 10-year yields rise isn’t done yet.” Savers in the biggest cities, the most able to flee a plunging local currency or hunt for returns to preserve their wealth, are feeling the impact of rising housing costs that boost everything from the price of copper and steel to the wages of nannies and waiters. Consumer prices rose 3.7 percent in Shanghai in November from a year earlier, even though CPI includes rent but not home-buying prices. “The current basket doesn’t consider the full effect of the burgeoning housing bubble," said Hong.

Categories LastDaily

Change

% Daily

ChangeCategories Last

Daily

Change

% Daily

Change

S&P/ASX 200 5627.90 -16.00 -0.28 Gold 1131.06 2.96 0.26

US - DOW 19918.88 -23.08 -0.12

US - S&P 500 2260.96 -4.22 -0.19 US 10 Year T-Bond 2.5517 0.01 0.55

Canada 15335.23 29.34 0.19 US 30 Year T-Bond 3.1273 0.02 0.59

UK 7063.68 22.26 0.32

Germany 11456.1 -12.54 -0.11 $A/$US 0.7209 0.00 -0.13

France 4834.63 0.81 0.02 $NZ/$A 0.9578 0.00 0.14

China 3120.45 -19.11 -0.61 STG/$A 1.7028 0.00 0.03

Japan 1543.82 0.00 0.00 Euro/$A 1.4484 0.00 0.17

Hong Kong 21525.95 -110.25 -0.51 $US/YEN 117.4700 -0.08 -0.07

NZ 6876.99 25.12 0.37 $US/CAD 1.3491 0.00 0.05



MARKET COMMENTARY:

Aussie Market > Market lost the momentum from four straight positive days to deliver a negative day. We are in the school holiday period where most investors will take the next two weeks off with Christmas and New Year breaks. We have seen better volumes this week than most expected and that may dry up over the next two weeks. The local market reached 18mth high on price index yesterday while making new all-time high on accumulation (i.e. including dividend) index. Local market is trading at stretched multiples with declining yield and growth support. The drivers are all about improving growth and inflation outlook in US and China. China optimism has been clear since Q216 with US optimism starting in Q316 while Republican’s sweeping all layers of the government gave it another kick along in Q416. US Fed has played its part in raising rates and upgrading rate cycle outlook while confirming the improved economic and inflationary outlook. Global markets have run ahead of themselves and now setting up a pullback. Geopolitical risks in Middle East and flow on effects into Europe are more catalyst that may trigger the process. The main market in focus is the US and history shows that there is a substantial relationship in Q4 performance and January returns. US market returns and the Dec-end tax implications means that US fund managers have taken profit in January when Q4 performances were positive while risks

were high. Since the GFC (i.e. 2008), every Q4 single digit return (i.e. S&P 500) in the US has delivered the opposite return in January. And we are looking at a single digit Q4 positive return in 2016. 2010 and 2011 were the exceptions when Q4 returns were double digit and the market ran with the momentum in January. In the last decade US markets have only delivered all positive quarters in 2 years (i.e. 2013 and 2014) and both times we had profit taking in the following January. We are in line to deliver 4 positive quarters in 2016. Local markets have reached 5600 again and weakening local economic outlook and emerging market risk will weigh on the index. The local market is at the mercy of the overpriced US market and we expect that to start to unravel in early Jan as the US tax period ends in December. The stronger the bond yields, the stronger the USD, the more pressure will be on Emerging Markets to raise rates to keep capital&.that will lower the growth outlook for Emerging Markets and their demand for commodities. China could throw in another curve ball by devaluating the Yuan further. We are sitting on declining stimulus hope, historically high commodity prices, historically high USD, potentially higher rates, historically low volatility indices, rising long bond yields, rising inflation and low corporate growth outlook&it can’t stay in this equilibrium&something has to give sooner or later&when everything positive is being priced in and everything negative is being ignored, risk in the market rises&it may have a delayed effect as the US tax cycle ends in Dec&pullback looks very likely in the next three weeks in the US&and for the local markets there is collateral damage!!!

The global markets are in an “Inflation Rally” as US and China data continues to beat expectations while Oil recovers on OPEC deal. Markets have run ahead of themselves and short term shallow retracement is expected in the next three weeks!!! Volatility is heading to all-time lows...trend is not positive for markets&looks like the calm before the storm!!! Interesting moves of the day& (1) AYS (+5%) on bargain hunters returning to the growth in beaten up telco sector (2) IPD (+4%) on bargain hunters returning to the growth in beaten up health care sector (3) MSB (+2%) on deal with global pharma to drive more growth (4) PDN (-5%) despite positive outlook after US president elect calls for more nuclear weapons (5) PLS (-5%) as market takes profit in resource sector ahead of long weekend (6) FMG (-4%) on weaker Iron Ore and market taking profit in resources



Aussie market declining forward yield premium > Rising bond yields are driving the decline in yield premium as stretched multiples test low growth outlook

Aussie market valuation > Stretched on forward PE bands&but can go a bit more higher

Aussie market growth > forward ROE still in decline

Aussie market growth > forward EPS growth outlook pulls back

2000

3000

4000

5000

6000

7000

8000

-4.00

-2.00

0.00

2.00

4.00

6.00

8.00

Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16

Earnings Yield Premium to Bond Yield Dividend Yield Premium to Bond Yield Market Price Index - LHS

1000

2000

3000

4000

5000

6000

7000

8000

9000

14.00

16.00

18.00

20.00

22.00

24.00

26.00



Aussie market div yield > premium to bond yield in decline

Aussie market momentum > earnings revision moves into negative

� MEDIA SECTOR > Global media M&A and local regulatory changes should keep local old media

in play&.NWS, FXJ, NEC, APN look interesting!!!

� OIL SECTOR > OPEC deal to reduce supply&even if you don’t believe reduction, it does curtail

the growth in supply. Oil became a buy when it went below $40 and bounced in August&.We maintain positive view on WPL and cashed up small caps like AWE and KAR. Shale in US does

0.00

5.00

10.00

15.00

20.00

25.00

30.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

Forward Dividend Yield 10Year Bond Yield Average DY Average BY

-20.00

-15.00

-10.00

-5.00

0.00

5.00

10.00

15.00

20.00

3mth Avg Earnings Revision 3mth Price Momentum



cap the upside&.and will drive the sector into oversupply when oil goes above $60. Oil sector is a buy near $40-$45 and will see profit taking near $55-$60 in the short to medium term!!!

� GLOBAL MINERS > Global miners are churning out cash and now back into the dividend cycle. Positive news for mining services!!!

� MINING SERVICES > Services sector remains in M&A play as recovery starts to come through with improving cash flow in the mining sector&.ANG, DCG, GNG, RCR et al starting to look interesting&.ANG’s recent trading update confirms our positive view&have raised at 16 cents to cater for rising working capital requirements&watch this space!!!

� AMAZON IS COMING > Discretionary retailers, Supermarkets and high margin specialty

retailers better get ready&it’s the Netflix of retailers. JBH and HVN are in for serious pain. WES and WOW are going to lose more margin and the turnaround will take longer. Specialist retailers like SUL, PMV and KMD have brand protection&.but low cost competitors are coming via Amazon. Big W and Target are going to get attacked while K Mart and TRS will get hurt despite the improved model.

� SUPERMARKETS > Price wars and market share defence will cost margins for everyone in the sector. More global/online players coming into the market in 2017. MTS pricing in too much optimism in hardware while WOW recovery will take longer than expected.

� ECB Debacle > Brexit in play&Italian referendum and Austrian election on Dec 4th with French,

German etc. elections in 2017&there is more road blocks for recovery with a substantial risk of EU breaking up needs to be priced in. US Fed rates outlook will get very flat if Italy plays hard ball&and 2017 may be further flattened out if French/German protectionism breaks down EU all together.

� GOLD SECTOR > As we have been telling clients for a number of months&.Iron Ore became a buy when it bounced above $50&.Oil became a buy when it went below $40 and bounced&.Gold has fallen below $1200 and we expect it to bounce back above $1200 to confirm our positive view again&macro risk building up in 2017!!!

� Housing Bubble > We maintain our view from early 2014 that housing bubble will start to roll over in late 2016 with oversupply in apartments and developer financing issues!!! RBA supports our view and warned that the bank profits may be hit and yields may suffer. The alarm bells are ringing on property market&bond yields and interest rates are going up, government budget needs more taxes to keep the bogus 2020/21 budget balance in play, historical high household debt, historical low wages, growth, unemployment, declining rent, oversupply of apartments, SMSF regulatory changes and China further tightening capital outflows!!!

Federal government is already in trouble in multiple policy areas&regulatory risk in number of sectors are rising&.we have already seen banks, super, education, aged care, salary packaging take a hit&.what more could be on the bash list > tourism, retail, supermarket, gambling, energy retailers, asset managers and construction are a few areas to keep an eye on as cross bench takes charge from weak government!!!

Main Thematics > central banks, stimulus, rate cycle, yield, currency, safety, global diversification, demographic changes, Asian middle class

Preferred Sectors > Banks, Miners, Energy, Gold, Specialty Consumer, Tourism, Small Cap Industrials, MITCH (i.e. Media, Information, Telco, Consumer and Health)

Take Profit Sectors > Residential Property, Domestic Consumer Sectors, Discretionary Retail, Supermarkets, Infrastructure, Utilities

Best picks, stock level information, sector breakdown and performance analysis starts on page 8. The stock ideas of the day are EPD for growth / tech, IFM for growth / US / tech thematic, PNV for growth / biotech and ANG for growth / resources / services thematic.



� MARKET MACRO SUMMARY We maintain our long term bull market view from 2012. It was based on weakness in interest rates, currency, economic growth, commodities and government policy while asset prices and dividend yield thematic will be the key positive drivers. Global investors looking for yield are likely to react in line with AUDUSD. � Currency to pull back to high 60’s in the back end of 2017 with local economic slowdown, recovering US and China

slowdown. � Tidal wave of unemployment to push it up to 6.0% in 2016H2 and above 6.5% in 2017. � Consumer sentiment expected to remain low into 2017 due to underemployment, property bubble, falling disposable

income and government policy backflips. � Property bubble in the making in parts of Australia and that will eventually come back to bite margin loan unit investors. � Strong currency and economic woes will drive RBA to cut interest rates down to 1.25% in 2017&next cut in 2017H1 � Investors after solid return to cover rising costs will chase equity dividend yield over fixed interest investments. � Global economy is expected to experience more growth downgrades, currency wars and stimulus plans. � Iron Ore and Oil price to average below $60 over the next 12mths. � For more customised service or further macro views, please contact Baillieu Holst or refer to the latest edition of “Equity

Engineer” publications.

INVESTMENT MOTTO: “Life is all about cycles. You evolve with the cycle or the cycle runs over you.”



� AROUND THE GROUNDS

Source – www.money.cnn.com

� US FEAR AND GREED INDEX

Source – www.money.cnn.com



� TRADING IDEA OF THE DAY

� Empired (EPD) – Baillieu Holst Industrial Analyst Josh Kannourakis has BUY rating and $0.65 price target. Investment view: EPD exhibited markedly improved operational performance in the 2H with underlying margins at or above historical achievements, supporting the one-off nature of 1H16 events. Improved utilisation rates from contracted works and a strong tender pipeline should support strong YoY growth (~10%) with an improved margin for safety. Valuation remains compelling with EPD trading on an FY17F EV/EBITDA multiple of 4.9x, which represents a 35% discount to the sector (FIG.1). Our applied valuation multiple includes a 20% discount to the sector and will be removed as EPD delivers improved performance. We upgrade our target price to $0.65 (prev. 0.55) and maintain our BUY recommendation.

� CHART IDEA OF THE DAY

� Infomedia (IFM) – Baillieu Holst Industrial Analyst Nicolas Burgess has BUY rating and $0.85 price target. Investment view: IFM has moved quickly to address bottlenecks in its sales and delivery capability. As these continue to unwind, it should see an improving growth outlook. Indeed, IFM expects its monthly recurring revenue growth to increase from 5% to 10%+ by June 2017. The Nissan contract win provides support to these growth expectations and validation of the Superservice product. Meanwhile, the company remains well capitalised with net cash of $14.7m at 30 June. We retain a BUY rating.



� FRIDAY’S BIOTECH IDEA OF THE DAY (HIGH RISK)

� PolyNovo (PNV) – Baillieu Holst Industrial Analyst Nick Caley has BUY rating and $0.60 price target. Investment view: BUY retained with DCF valuation of A$0.60 (prev. A$0.49) and price target of A$0.60 (prev. A$0.50). We have rolled forward to our FY17 valuation. The decision to go it alone in the US underlines PNV’s confidence in a successful commercialisation of the product which appears to be imminent. Our analysis continues to point to the competitive advantages of BTM in terms of functionality, cost effectiveness and absence of imported infections.

� MINI CAP GROWTH IDEA OF THE DAY (HIGH RISK)

� Austin Engineering (ANG) – ANG is involved in the manufacture, repair, overhaul and supply of mining attachment products, general steelwork structures and other associated products and services for the industrial and resources-related business sectors. The company has Australian manufacturing facilities in Brisbane, Perth, Mackay and Muswellbrook, overseas in the America state Wyoming through its subsidiary Western Technology Services (Westech), Austin Ingenieros Chile, Austin Ingenieros Colombia, Austin Engineering Peru and Austin Engineering Indonesia. In addition, a joint venture operation in the Middle East provides ANG with a manufacturing facility in Oman. ANG products and services include JEC Mining & Earthmoving Products, Westech and TAE Truck Bodies Equipment Repair and Maintenance Services. JEC's product range covers: off-highway dump truck bodies, excavator buckets, wheel loader, attachments, water tanks, lubrication service & fuel modules, tyre handling equipment, specialised products & fabrication, specialised machining & line boring and cooling systems.



Stock Performance Breakdown � MARKET MOVERS AND SHAKERS

� MAJOR SECTOR PERFORMANCES OVER THE DAY



� TODAY’S TOP 30 WINNERS AND LOSERS IN S&P 300

Code Company Name Market Cap ($m) Price ($)Daily Price

Change (%)

Consensus Target

Price ($)Consensus Rating 2016 PE 2017 PE

2016 EPS

GROWTH

2017 EPS

GROWTH

2016 Div

Yield

2017 Div

YieldNewsflash

AYS Amaysim Australia 341.28 1.96 5.11 2.44 Buy 17.30 12.95 121.57 33.63 4.11 5.22 N/A

AJX Alexium International 172.16 0.60 4.39 1.00 Strong Buy -13.52 28.33 98.53 147.73 0.00 0.00 N/A

LNG Liquefied Natural 327.70 0.67 3.91 12.00 Buy -3.33 N/A -168.46 100.00 0.00 0.00 Appendix 3Y - Change of Directors Interest Notice

IPD Impedimed Limited 354.38 0.98 3.70 2.53 Strong Buy -14.70 -13.80 -70.94 -6.50 0.00 0.00 N/A

OFX Ozforex Group Ltd 396.00 1.70 3.03 1.85 Buy 16.50 17.71 1.15 -6.80 4.49 4.06 N/A

ALU Altium Limited 1010.47 7.98 2.84 9.17 Hold 35.56 27.03 26.65 31.56 2.45 2.81 N/A

VRT Virtus Health Ltd 483.87 6.17 2.49 7.85 Buy 14.79 14.38 3.93 2.81 4.61 4.86 N/A

MSB Mesoblast Limited 536.22 1.44 2.49 2.24 Hold -6.42 -6.52 22.70 1.54 0.00 0.00 Mesoblast inks deal with global pharma company

FET Folkestone Edu Trust 618.31 2.54 2.42 2.72 Buy 18.11 16.82 7.06 7.66 5.24 5.55 N/A

NTC Netcomm Wireless 307.29 2.15 2.38 3.94 Buy 186.96 537.50 -17.86 -65.22 0.00 0.00 Director Appointment/Resignation

CSV CSG Limited 227.01 0.73 2.11 1.00 Hold 9.42 9.67 10.00 -2.60 12.41 10.62 N/A

GMG Goodman Group 12702.76 7.25 2.11 7.45 Buy 18.09 16.98 7.81 6.57 3.31 3.52 Change in substantial holding

SDA Speedcast Int Ltd 790.77 3.40 2.10 4.90 Buy 20.26 12.68 3.01 59.72 2.47 3.29 N/A

AIA Auckland Internation 7419.26 6.36 2.09 4.18 Underperform 38.46 33.68 22.97 14.19 2.60 2.96 AIA November 2016 Monthly Traffic Update

SCG Scentre Grp 23799.61 4.56 2.01 4.74 Hold 20.00 19.08 1.84 4.82 4.65 4.85 N/A

AMA AMA Group Limited 473.69 1.02 2.00 1.33 Buy 27.57 20.82 23.33 32.43 2.50 2.94 N/A

MGR Mirvac Group 7928.94 2.18 1.87 2.26 Buy 16.75 15.35 6.47 9.08 4.56 4.68 N/A

MGC Mg Unit Trust 176.18 0.88 1.74 1.22 Hold 12.03 14.34 N/A -16.15 8.31 7.31 N/A

FXJ Fairfax Media Ltd 1989.05 0.88 1.73 0.94 Hold 14.33 14.67 -0.68 -2.28 4.61 4.55 N/A

FSF Fonterra Share Fund 700.83 5.88 1.73 6.76 Hold 12.07 11.41 82.75 5.81 6.44 6.48 N/A

EML Emerchants Ltd 432.97 1.80 1.70 2.34 Buy 94.47 32.64 -15.56 189.47 0.00 0.00 N/A

VVR Viva Energy REIT 1635.66 2.41 1.69 2.62 Buy 47.25 17.99 N/A 162.75 2.12 5.56 Viva Energy REIT (VVR) Year End Timetable 2016

INM Iron Mountain Inc 2145.85 45.16 1.57 55.50 Buy 30.39 26.60 -11.34 14.23 5.58 6.12 N/A

CMW Cromwell Prop 1723.72 1.00 1.53 0.99 Underperform 11.20 12.13 6.10 -7.72 8.13 8.14 N/A

APN APN News & Media 830.23 2.74 1.48 3.72 Buy 14.20 12.18 -52.07 16.58 1.79 3.94 N/A

MYR Myer Holdings Ltd 1125.15 1.39 1.46 1.28 Hold 15.26 14.95 -22.86 2.09 3.75 4.24 Myer response to Writ

ANN Ansell Limited 3538.74 24.35 1.46 23.07 Hold 18.48 16.72 -19.88 10.53 2.31 2.65 N/A

AGI Ainsworth Game Tech. 685.35 2.10 1.45 2.07 Hold 13.08 15.33 -6.38 -14.64 4.91 4.29 N/A

DXS Dexus Property Group 9389.09 9.84 1.44 9.06 Hold 17.40 17.32 1.21 0.41 4.42 4.56 N/A

RFF Rural Funds Group 359.73 1.76 1.44 1.71 Strong Buy 7.73 13.54 150.40 -42.88 4.88 5.28 N/A


Change (%)

Consensus Target


2016 EPS

GROWTH

2017 EPS

GROWTH

2016 Div

Yield

2017 Div

YieldNewsflash

PDN Paladin Energy Ltd 131.89 0.07 -5.19 0.16 Hold -2.52 -3.90 58.19 35.26 0.00 0.00 N/A

PLS Pilbara Minerals Limited 611.48 0.46 -5.15 0.83 Buy -36.80 -65.71 N/A 44.00 0.00 0.00 Cleansing Notice and Appendix 3B

FMG Fortescue Metals Grp 18807.34 5.77 -4.47 5.28 Hold 16.22 7.02 111.84 130.94 1.51 5.04 N/A

GOR Gold Road Res Ltd 479.03 0.53 -3.64 0.88 Buy -58.94 -44.17 28.73 -33.45 0.00 0.00 N/A

ADH Adairs Limited 276.18 1.61 -3.60 2.15 Buy 9.99 12.35 24.55 -19.09 6.65 6.54 N/A

MLX Metals X Limited 347.32 0.55 -3.51 1.31 Buy 16.79 12.22 -64.91 37.40 5.45 1.27 N/A

MNS Magnis Resource Ltd 346.50 0.75 -3.25 1.50 Buy -39.21 -43.82 -17.30 10.53 0.00 0.00 N/A

EHE Estia Health Ltd 569.55 2.41 -3.21 2.69 Underperform 8.46 11.93 27.74 -29.12 11.75 6.02 Change in substantial holding

TTS Tatts Group Ltd 6681.76 4.42 -2.86 4.33 Hold 24.31 24.42 0.64 -0.45 3.88 3.91 Tatts Group rejects Pacific Consortium bid

AHY Asaleo Care Limited 785.25 1.38 -2.83 1.69 Buy 11.96 11.46 -9.92 4.35 6.84 7.13 Change in substantial holding

CDD Cardno Limited 467.60 0.95 -2.56 0.65 Hold 43.70 38.00 123.54 14.99 0.00 0.00 N/A

MYX Mayne Pharma Ltd 2062.30 1.35 -2.54 1.77 Buy 26.17 16.60 163.29 57.58 0.00 0.00 N/A

SWM Seven West Media Ltd 1206.43 0.78 -2.50 0.77 Hold 5.61 7.50 -12.56 -25.18 9.69 8.72 N/A

VTG Vita Group Ltd 496.94 3.19 -2.45 4.71 Buy 14.72 12.32 74.26 19.54 4.35 5.14 N/A

SFR Sandfire Resources 910.14 5.63 -2.43 6.00 Hold 15.61 13.28 -36.89 17.55 1.80 2.24 N/A

SAR Saracen Mineral 682.02 0.83 -2.37 1.35 Buy 24.15 7.57 -15.90 219.02 0.00 1.45 N/A

MLD MACA Limited 395.88 1.66 -2.35 1.82 Strong Buy 15.96 12.67 -60.83 25.96 4.82 5.42 N/A

WSA Western Areas Ltd 824.87 2.96 -2.31 2.73 Hold -37.72 80.00 -135.13 147.15 0.03 0.30 N/A

FPH Fisher & Paykel H. 4681.42 8.06 -2.30 7.79 Underperform 34.24 28.87 26.42 18.63 1.92 2.35 N/A

CCP Credit Corp Group 847.63 17.50 -2.23 19.03 Buy 18.25 14.82 15.05 23.19 2.76 3.34 N/A

RIO Rio Tinto Limited 25489.72 58.77 -2.20 65.65 Hold 17.02 13.56 -0.01 25.56 2.95 3.87 N/A

ISU Iselect Ltd 430.57 1.81 -2.16 1.61 Buy 39.78 20.57 -36.36 93.41 0.98 0.88 Daily share buy-back notice - Appendix 3E

BHP BHP Billiton Limited 80741.91 24.63 -2.03 25.60 Hold 95.73 16.44 -86.83 482.31 1.65 3.61 N/A

SXL Sthn Cross Media 1153.52 1.47 -2.00 1.35 Hold 14.52 12.35 10.27 17.53 4.54 5.31 N/A

EWC Energy World Corpor. 450.88 0.26 -1.92 0.80 Buy N/A N/A N/A N/A N/A N/A N/A

JBH JB Hi-Fi Limited 3182.79 27.30 -1.90 30.64 Buy 18.77 15.46 12.23 21.44 3.48 4.18 N/A

HFR Highfield Res Ltd 427.23 1.31 -1.88 1.93 Buy -177.95 -59.32 78.27 -200.00 0.00 0.00 N/A

SVW Seven Group Holdings 2258.36 7.88 -1.87 6.60 Hold 17.58 15.10 -28.90 16.47 5.05 5.08 N/A

QBE QBE Insurance Group 17419.20 12.47 -1.81 12.87 Buy 17.17 13.83 -15.92 24.16 4.31 4.75 N/A

A2M The A2 Milk Company 1438.90 1.98 -1.74 2.32 Buy 47.37 27.05 N/A 75.10 0.08 1.06 A2M NZ Filing: Becoming a substantial holder



� CHECKING S&P 300 BY THE SECTOR

� Energy stocks: OPEC supply deal driving sector uncertainty&.Even without an OPEC deal, long term dynamics were pointing toward a supply/demand match in 2017/18&now OPEC deal expected to keep it range bound $40-$60!!!

News Snippet: � Coal Outlook – Coal's recovery was one of the biggest surprises in commodities this year, but it's all poised to end as

output rises from China, producer of half the world's supply. After half a decade of declines, European prices rebounded more than 80 per cent as China, also the world's biggest consumer of the fuel, boosted imports. Benchmark month-ahead contracts will fall by more than 25 per cent by the end of next year, according to the median in a Bloomberg survey of six analysts and traders. Just as Chinese policy limiting mining days kick-started the rally, a gradual boost in domestic output during autumn will accelerate a slide, according to analysts. Once seasonal winter demand in the northern hemisphere is over, China will need less imports at the same time as abundant output by other producers will keep a lid on prices from Australia to Antwerp. "The market is going to be determined by whatever the Chinese are going to do," said Thomas Pugh, a commodities economist at Capital Economics in London, who predicted a price of $US60 in the survey. "Everything else fades into the background." Forecasts ranged from $US57.50 to $US75 a ton, with the median at $US60. Month-ahead fuel for delivery to Amsterdam, Rotterdam or Antwerp was little changed at $US82.75 in Wednesday morning in London. Coal at Australia's Newcastle port, as well as front-month futures on China's Zhengzhou Commodity Exchange, are up more than 70 per cent this year. AFR

� Oil Outlook – Oil prices are set to recover next year as OPEC fulfils its agreement to cut output, halting the slump that battered the global oil industry, Saudi Arabia's energy minister said. The kingdom sees no need for additional production cuts on top of the curbs pledged in recent weeks by OPEC and 11 other oil-producing countries, Khalid Al-Falih said at a ceremony to announce the annual budget in Riyadh. The intervention is intended only to "nudge along" the re-balancing of an oversupplied global oil market, he said. "I'm very optimistic that next year will see economic recovery and a recovery of oil markets," Al-Falih said. Prices, unsustainable at current levels, will also need to rise to encourage investment in the new supplies needed in coming years, he said. Crude will balance somewhere between $US50 and $US100 a barrel, he said. Investment in the world's oil industry has fallen for three consecutive years amid a slump in prices, leading to the lowest level of discoveries in five decades, according to the International Energy Agency. The Organisation of Petroleum Exporting Countries, working in concert with other producers such as Russia, has resolved to reduce output to clear a persisting oil glut and revive prices. "Markets worldwide are leaving a contraction period and a period of low oil prices and reduced investment in the sector," Al-Falih said. The minister anticipates that crude prices will increase "tangibly" in 2017, he said in an interview with Al Arabiya television. The kingdom expects its oil revenue to climb by 46 per cent to 480 billion riyals ($US128 billion) next year, the Finance Ministry said in a budget statement. Benchmark Brent crude traded at about $US55 a barrel in London on Thursday. Saudi Arabia is assuming that prices stay at $US55 next year and advance to $US61 in 2018, according to Al Arabiya. AFR

� Uranium Outlook – President-elect Donald Trump said the US should enlarge its nuclear arsenal, an apparent

reversal of a decades-long reduction of the nation's atomic weaponry that came hours after Russian President Vladimir Putin said his country's arsenal should also be strengthened. "The United States must greatly strengthen and expand its nuclear capability until such time as the world comes to it senses regarding nukes," Trump said in a Twitter post. Putin said in a speech earlier on Thursday in Moscow that his country should also bolster its nuclear forces: "We need to enhance the combat capability of strategic nuclear forces, primarily by strengthening missile complexes that will be guaranteed to penetrate existing and future missile defence systems," he said. Global X Uranium ETF rose to a session high after Trump's comments while Uranium Resources, a Colorado-based mining company, climbed as much as 27 per cent before trimming gains. President Barack Obama has both reduced the US nuclear arsenal, in an agreement early in his presidency with Russia, and sought to modernise it to replace thousands of bombs and missiles. His modernisation plan - which the Arms Control Association said would cost as much as $US1 trillion over 30 years - has come under criticism from proponents of denuclearisation, who warn it may prompt a new arms race with Russia and China. More broadly, Trump has said he will seek to enlarge the US military, including by building dozens of new ships for the Navy, while controlling costs. AFR

� Material (Ex Mining) stocks: Sector looks stretched with investors chasing safe yield, but the growth outlook in chemicals are showing value after recent pullback. Sector back in “selective buy” area.

News Snippet:


Change (%)

Consensus Target


2016 EPS

GROWTH

2017 EPS

GROWTH

2016 Div

Yield

2017 Div

YieldNewsflash

LNG Liquefied Natural 327.70 0.67 3.91 12.00 Buy -3.33 N/A -168.46 100.00 0.00 0.00 Appendix 3Y - Change of Directors Interest Notice

ORG Origin Energy 11178.19 6.44 1.10 6.38 Hold 26.90 21.76 -54.84 23.63 2.04 0.23 Appendix 3B

WPL Woodside Petroleum 26452.77 31.68 0.89 30.91 Hold 22.43 18.52 -13.76 21.16 3.66 4.25 N/A

STO Santos Ltd 7965.60 3.95 0.77 4.66 Hold 286.04 19.59 -81.48 1360.00 0.75 10.57 Securities Trading Policy

CTX Caltex Australia 7941.68 30.60 0.49 34.70 Buy 15.49 14.19 -15.10 9.11 3.36 3.67 N/A

OSH Oil Search Ltd 10552.26 6.96 0.43 8.22 Hold 62.13 24.71 -65.66 151.41 0.73 1.58 N/A

SEH Sino Gas Energy 228.18 0.11 0.00 0.25 Buy -27.50 36.67 -0.91 175.00 0.00 0.00 N/A

SXY Senex Energy Limited 305.91 0.27 0.00 0.28 Hold 39.47 N/A 98.94 -100.00 0.00 0.00 N/A

WOR WorleyParsons Ltd 2405.29 9.76 0.00 8.29 Hold 15.40 17.59 -21.87 -12.41 0.00 0.16 N/A

KAR Karoon Gas Australia 441.23 1.79 -0.56 2.58 Buy -23.49 -22.88 54.33 -2.63 0.00 0.00 N/A

BPT Beach Energy Limited 1538.70 0.82 -0.61 0.67 Hold 38.89 13.02 -71.01 198.81 0.61 1.46 N/A

AWE AWE Limited 324.82 0.61 -0.81 0.64 Hold -4.09 -26.52 -344.17 84.56 0.00 0.00 N/A

FAR FAR Ltd 312.31 0.07 -1.43 0.17 Buy -34.50 -34.50 -0.39 0.00 0.00 0.00 N/A

WHC Whitehaven Coal 2729.28 2.62 -1.50 2.81 Hold 196.50 6.97 147.51 2720.01 0.00 0.76 N/A

PDN Paladin Energy Ltd 131.89 0.07 -5.19 0.16 Hold -2.52 -3.90 58.19 35.26 0.00 0.00 N/A



� None

� Gold stocks: Global risks keeps Spot gold in play. Sector remains the best commodity pick with upgrade cycle&profit taking was due to strengthening USD&but macro market issues will drive the next leg up!!!

News Snippet: � None

� Mining (Ex Gold) stocks: Miners to benefit from weaker USD and central bank stimulus. Sector now offering risky high beta small caps and safer cash churning big miners!!!

News Snippet: � Chinese Pollution and Iron Ore – Chinese steel and iron ore futures slumped more than 4 per cent on Thursday as

a smog that engulfed northern cities of the country this week slowed trading activity. Iron ore for delivery to China's Qingdao port dropped $US3.04 or 3.8 per cent to $US76.15 a tonne on Thursday, according to Metal Bulletin, falling for a fifth straight day. The drop came despite some steel mills in the country receiving notices to resume sintering and blast furnace operations having returned to normal, Metal Bulletin said in a note. The smog has thinned in some parts including in the port city of Tianjin, but traders say many steel mills exercised caution on worries that air pollution may worsen again in the next few days. The most-active rebar on the Shanghai Futures Exchange closed down 4.2 per cent at 3026 yuan ($US436) a tonne. On the Dalian Commodity Exchange, iron ore dropped 4.4 per cent to end at 542.5 yuan a tonne. It fell as far as 541.50 yuan, its weakest since November 22. Both commodities have lost at least 15 per cent since hitting nearly three-year highs last week. They gained marginally on Wednesday after a five-day slide. Some mills were starting to purchase iron ore again with the smog easing on Thursday, but they are still cautious about the weather, said a trader based in Tianjin. "If this weekend the smog returns then mills will stop or limit production again," he said. AFR

� Industrial stocks: Value beginning to show after recent pullback with selective exposures worth looking into. Sector in selective buy in unique service sectors.



Change (%)

Consensus Target


2016 EPS

GROWTH

2017 EPS

GROWTH

2016 Div

Yield

2017 Div

YieldNewsflash

AJX Alexium International 172.16 0.60 4.39 1.00 Strong Buy -13.52 28.33 98.53 147.73 0.00 0.00 N/A

TFC TFS Corporation Ltd 647.73 1.68 1.20 3.25 Strong Buy 31.30 25.45 -12.97 22.98 1.79 1.79 N/A

BKW Brickworks Limited 1995.04 13.53 1.12 14.70 Hold 14.21 13.23 19.22 7.42 3.47 3.75 N/A

JHX James Hardie Indust 9605.94 22.00 0.96 21.14 Hold 30.26 27.69 18.62 9.29 2.50 2.49 N/A

AMC Amcor Limited 17337.37 15.07 0.67 16.03 Buy 21.29 18.59 -7.07 14.56 3.55 4.05 N/A

ORA Orora Limited 3607.99 3.00 0.33 3.12 Buy 23.02 20.55 18.84 12.02 3.02 3.33 N/A

FBU Fletcher Building 7099.47 10.24 0.10 9.34 Hold 18.98 16.08 7.41 18.09 3.60 3.97 N/A

PGH Pact Group Hldgs Ltd 2004.87 6.70 0.00 6.73 Hold 21.09 18.46 7.85 14.24 3.11 3.58 N/A

IPL Incitec Pivot 6073.81 3.59 -0.28 3.38 Buy 21.14 19.51 -28.24 8.37 2.50 2.95 N/A

NUF Nufarm Limited 2435.35 9.08 -0.55 9.18 Hold 24.17 17.84 -1.66 35.46 1.17 1.51 N/A

BLD Boral Limited 6354.04 5.39 -0.55 5.92 Hold 17.13 16.33 10.27 4.91 3.81 4.10 N/A

ABC Adelaide Brighton 3449.66 5.28 -0.56 5.25 Hold 17.54 16.92 -2.18 3.65 5.17 5.19 N/A

CSR CSR Limited 2280.25 4.49 -0.66 3.98 Hold 14.00 12.20 23.34 14.72 5.14 5.55 N/A

DLX Duluxgroup Limited 2448.38 6.23 -0.95 6.21 Hold 18.65 17.85 8.76 4.49 3.83 3.98 N/A

ORI Orica Limited 6714.74 17.59 -1.46 15.67 Hold 16.83 16.98 -10.97 -0.87 3.08 3.04 N/A

HFR Highfield Res Ltd 427.23 1.31 -1.88 1.93 Buy -177.95 -59.32 78.27 -200.00 0.00 0.00 N/A


Change (%)

Consensus Target


2016 EPS

GROWTH

2017 EPS

GROWTH

2016 Div

Yield

2017 Div

YieldNewsflash

DRM Doray Minerals Ltd 149.91 0.43 1.19 0.66 Buy 8.59 15.74 -45.65 -45.45 0.00 0.00 N/A

OGC OceanaGold Corp. 2120.07 3.50 0.86 5.46 Buy 12.24 7.73 29.44 58.45 1.45 1.33 N/A

EVN Evolution Mining Ltd 2922.73 1.75 0.57 2.53 Buy 12.00 8.79 34.42 36.47 1.36 2.11 N/A

NCM Newcrest Mining 13793.58 18.08 0.50 22.75 Hold 32.00 17.11 -10.62 86.99 0.39 1.28 N/A

RRL Regis Resources 1282.54 2.56 0.00 3.33 Hold 11.79 9.81 31.97 20.24 3.94 5.23 N/A

AQG Alacer Gold Corp. 172.53 2.02 0.00 4.26 Hold 22.28 79.23 -58.05 -71.88 0.00 0.00 N/A

RSG Resolute Mining 766.46 1.04 0.00 1.99 Buy 5.70 4.58 97.65 24.38 0.48 1.73 N/A

BDR Beadell Resource Ltd 243.24 0.23 0.00 0.50 Buy 4.60 3.29 453.36 40.00 0.87 0.87 Becoming a substantial holder

PRU Perseus Mining Ltd 313.57 0.31 0.00 0.70 Buy -25.48 -15.25 -110.75 -67.08 0.00 0.00 N/A

SBM St Barbara Limited 885.25 1.78 -0.28 2.88 Buy 6.45 5.96 243.75 8.36 0.00 0.00 N/A

WGX Westgold Resources Ltd 440.25 1.44 -0.35 0.45 Strong Buy 23.61 N/A 7.02 N/A 0.00 N/A SAU: Cannon 6th Processing Campaign Results

DCN Dacian Gold Ltd 280.87 1.90 -1.04 3.12 Buy -30.06 -40.43 85.93 25.64 0.00 0.00 N/A

NST Northern Star 1909.72 3.14 -1.26 4.27 Hold 11.22 8.75 21.19 28.33 2.13 3.28 N/A

SAR Saracen Mineral 682.02 0.83 -2.37 1.35 Buy 24.15 7.57 -15.90 219.02 0.00 1.45 N/A

MLX Metals X Limited 347.32 0.55 -3.51 1.31 Buy 16.79 12.22 -64.91 37.40 5.45 1.27 N/A

GOR Gold Road Res Ltd 479.03 0.53 -3.64 0.88 Buy -58.94 -44.17 28.73 -33.45 0.00 0.00 N/A


Change (%)

Consensus Target


2016 EPS

GROWTH

2017 EPS

GROWTH

2016 Div

Yield

2017 Div

YieldNewsflash

S32 South32 Limited 14374.16 2.73 1.11 2.97 Hold 114.58 10.76 -86.73 964.43 0.19 4.19 N/A

GXY Galaxy Resources 907.11 0.50 1.01 0.55 Buy -125.00 14.29 -166.67 975.00 0.00 0.00 N/A

LYC Lynas Corporation 246.46 0.07 0.00 0.09 Buy -2.41 11.67 22.67 120.69 0.00 0.00 N/A

ILU Iluka Resources 2947.65 7.03 -0.14 6.96 Hold -439.38 31.67 -107.66 1487.50 1.69 2.80 N/A

MIN Mineral Resources. 2199.55 11.73 -0.26 12.12 Buy 18.73 13.27 15.08 41.12 1.82 3.94 N/A

SYR Syrah Resources 778.08 2.92 -1.02 7.10 Buy -76.84 -28.91 30.91 -165.79 0.00 0.00 N/A

BSL BlueScope Steel Ltd 5354.42 9.23 -1.07 9.98 Buy 18.05 10.37 140.06 74.05 0.89 1.24 N/A

IGO Independence Group 2434.80 4.10 -1.20 4.00 Hold 72.25 43.16 -84.05 67.40 0.28 0.85 N/A

AWC Alumina Limited 5241.32 1.80 -1.37 1.77 Hold 38.43 18.15 -48.55 111.76 4.82 5.59 N/A

OZL OZ Minerals 2403.48 7.81 -1.39 7.52 Hold 22.70 18.64 -20.38 21.80 1.60 1.91 Daily share buy-back notice - Appendix 3E

ORE Orocobre Limited 885.45 4.15 -1.43 4.96 Buy -19.71 53.90 -191.82 136.56 0.00 0.00 N/A

SGM Sims Metal Mgmt Ltd 2576.62 12.86 -1.46 10.55 Hold 69.89 23.73 -61.70 194.57 1.54 2.27 N/A

BHP BHP Billiton Limited 80741.91 24.63 -2.03 25.60 Hold 95.73 16.44 -86.83 482.31 1.65 3.61 N/A

RIO Rio Tinto Limited 25489.72 58.77 -2.20 65.65 Hold 17.02 13.56 -0.01 25.56 2.95 3.87 N/A

WSA Western Areas Ltd 824.87 2.96 -2.31 2.73 Hold -37.72 80.00 -135.13 147.15 0.03 0.30 N/A

SFR Sandfire Resources 910.14 5.63 -2.43 6.00 Hold 15.61 13.28 -36.89 17.55 1.80 2.24 N/A

MNS Magnis Resource Ltd 346.50 0.75 -3.25 1.50 Buy -39.21 -43.82 -17.30 10.53 0.00 0.00 N/A

FMG Fortescue Metals Grp 18807.34 5.77 -4.47 5.28 Hold 16.22 7.02 111.84 130.94 1.51 5.04 N/A

PLS Pilbara Minerals Limited 611.48 0.46 -5.15 0.83 Buy -36.80 -65.71 N/A 44.00 0.00 0.00 Cleansing Notice and Appendix 3B



� Consumer stocks: We maintain our preference to entertainment, media and gambling while we see substantial risk in discretionary retail sector. Media sector rule changes will drive M&A with smaller regional players becoming the target for industry consolidation. Sector mainly stuck in “selective buy” category after recent selloff.

News Snippet: � Seven West Media – The NSW Supreme Court has issued an injunction on a website naming and linking two high

profile Seven West Media employees to the Tim Worner scandal. Justice Stephen Campbell said "the material is a flagrant and obvious case of defamation" when issuing the interlocutory injunction against the publication. The injunction will be in effect until the defamation case has been decided. However, if the plaintiffs take too long to bring on the case, the defendant may apply for dissolution. Seven West Media's lawyers, acting on behalf of the two high-profile employees, launched legal action against a website naming and linking them to the scandal. Amber Harrison, a former executive assistant at the network who had an affair with Mr Worner, alleged the chief executive had sexual relations with four other staff members, an allegation that Mr Worner has denied. Law firm Addisons sent letters to Fairfax Media, publisher of The Australian Financial Review, on behalf of the four women named by Ms Harrison and denied they had ever been involved in sexual or inappropriate activities with Mr Worner. The letters also threatened legal action if the women's names were made public. The defendant did not turn up to court on Friday morning after being served with regards to the matter. "The defendant has had a fair opportunity...he has chosen not to take that opportunity, " Justice Campbell said. The defendant been "deliberately defiant of the court's orders" he said, referring to court order on Wednesday. AFR

� Shaver Shop – Share trading in personal grooming retailer Shaver Shop is under scrutiny after a significant share price slide in the lead-up to a sales downgrade. Shaver Shop chief executive Cameron Fox warned on Friday there had been weaker-than-expected sales in the past few weeks in "key gift giving product lines" while the closure of its Queensgate store in New Zealand after an earthquake had also reduced sales at the company. The downgrade and the spotlight on share trading in the past few days comes just six months after Shaver Shop listed on the Australian Securities Exchange after raising $98 million in a public float. The issue price of the shares had been $1.05, but by the close of trading on Thursday had been 82¢. The shares tumbled on Friday morning by more than 13 per cent to 71¢ as investors reacted harshly to the fall-off in sales. The biggest drop off in gift-giving products had occurred in the hair styling category for the retailer, which runs 100 stores across Australasia. Mr Fox said sales up until the end of November had been on track with its prospectus forecast and in line with previous guidance, but there had been weakness in December. This meant that Shaver Shop's forecast for retail sales for the month of December from its corporate stores was now likely to be between $26.5 million to $28 million, instead of the previous internal forecast of $29.5 million. The weakness in the hair styling category hadn't been able to offset strong sales in other segments such as men's electric shavers, long-term hair removal products and female beauty products. AFR

� Tatts Group – Lotteries and wagering giant Tatts Group will reject the takeover offer from a Macquarie-led

consortium and will retain its backing for Tabcorp's bid. Macquarie has a 10 per cent stake in the Pacific Consortium - which includes private equity firm KKR (a 30 per cent stake), Morgan Stanley's infrastructure wing North Haven Infrastructure Partners (30 per cent) and local superannuation investor First State Super (30 per cent) – that pitched an offer for Tatts Group on December 14 worth $4.40 to $5 a share for Tatts. This compares with Tabcorp's November offer that valued Tatts at $4.34 a share. But Tatts said in statement on Friday that the Pacific bid "is predicated on a number of key assumptions that are either incorrect, inconsistent with Tatts' current expectations or unknown, and Tatts is unable to assess what impact, if any, these factors might have on the terms and conditions of the indicative proposal. "Even if the Pacific Consortium were to update its key assumptions with no consequential impact on its key terms and conditions, the Tatts board would still make the same determination given Tatts believes the total value offered is not superior to the proposed Tabcorp merger." The Pacific Consortium's plan was specifically aimed at getting Tatts' valuable lotteries business. The Consortium planned to float Tatts wagering business in a separate sharemarket vehicle, or sell it to a "strategic buyer". AFR


Change (%)

Consensus Target


2016 EPS

GROWTH

2017 EPS

GROWTH

2016 Div

Yield

2017 Div

YieldNewsflash

AIA Auckland Internation 7419.26 6.36 2.09 4.18 Underperform 38.46 33.68 22.97 14.19 2.60 2.96 AIA November 2016 Monthly Traffic Update

MQA Macq Atlas Roads Grp 2592.34 4.94 1.02 5.60 Buy 28.39 19.15 7.47 48.28 3.79 4.27 N/A

MND Monadelphous Group 1024.78 11.00 0.73 7.58 Underperform 14.75 18.77 -35.02 -21.43 5.33 4.31 N/A

AZJ Aurizon Holdings Ltd 10279.24 5.04 0.60 4.80 Hold 20.28 18.74 -12.45 8.25 4.83 5.10 N/A

SPO Spotless Grp Hld Ltd 1054.36 0.97 0.52 1.29 Hold 7.66 8.39 -1.82 -8.73 8.70 8.50 N/A

BXB Brambles Limited 19601.40 12.40 0.49 13.78 Buy 24.21 21.53 -0.74 12.49 2.68 2.95 N/A

SSM Service Stream 388.93 1.07 0.47 1.13 Strong Buy 18.47 16.21 20.33 13.91 2.31 3.08 N/A

CWY Cleanaway Waste Man 1853.43 1.17 0.43 1.06 Buy 31.62 26.00 33.20 21.62 1.61 1.79 N/A

QUB Qube Holdings Ltd 3484.59 2.41 0.42 2.55 Hold 29.15 25.91 -17.83 12.49 2.15 2.45 N/A

RWC Reliance Worldwide Corp 1627.50 3.11 0.32 3.15 Hold 30.92 26.13 N/A 18.32 0.00 2.09 N/A

QAN Qantas Airways 6228.91 3.38 0.30 3.97 Buy 6.33 6.28 69.11 0.76 0.74 5.36 Daily share buy-back notice - Appendix 3E

SYD SYD Airport 13521.45 6.02 0.17 7.07 Buy 40.13 36.71 37.91 9.33 5.15 5.60 N/A

DOW Downer EDI Limited 2565.70 6.05 0.17 4.88 Hold 15.45 16.13 -15.81 -4.21 3.89 3.67 N/A

CIM CIMIC Group 11115.43 34.31 0.09 26.32 Underperform 22.04 20.57 4.90 7.13 2.94 3.08 N/A

GWA GWA Group Ltd 754.89 2.86 0.00 2.74 Hold 16.86 14.59 18.65 15.52 4.79 5.35 N/A

TOX Tox Free Solutions 477.11 2.46 0.00 2.59 Hold 13.87 14.47 -2.31 -4.17 3.69 3.62 N/A

SEK Seek Limited 5206.65 14.95 -0.13 15.59 Hold 28.48 25.56 -7.96 11.45 2.37 2.71 N/A

SIQ Smartgrp Corporation 741.07 6.09 -0.16 6.25 Hold 16.82 14.23 57.73 18.23 3.81 4.68 N/A

RCR RCR Tomlinson 377.90 2.69 -0.37 3.12 Strong Buy 38.80 10.19 -75.06 280.77 1.81 3.09 N/A

TCL Transurban Group 21612.25 10.53 -0.47 11.53 Buy 84.89 61.94 53.99 37.05 4.32 4.80 N/A

ALQ Als Ltd 2914.40 5.75 -0.52 5.78 Hold 22.97 27.25 -20.87 -15.70 2.38 2.02 N/A

IPH IPH Limited 960.97 4.98 -0.80 6.99 Buy 17.99 17.54 56.38 2.60 4.64 4.90 N/A

PRG Programmed 477.31 1.84 -0.81 1.92 Buy 7.88 11.08 -6.06 -28.91 7.60 4.84 N/A

SGF SG Fleet Group Ltd 794.52 3.11 -0.96 4.51 Buy 14.56 12.15 29.14 19.85 4.40 4.95 N/A

CAB Cabcharge Australia 468.48 3.85 -1.03 3.43 Hold 9.80 12.30 -18.88 -20.31 5.03 5.01 N/A

MMS McMillan Shakespeare 889.46 10.54 -1.40 12.10 Hold 10.06 10.17 15.90 -1.10 5.89 5.86 N/A

ASB Austal Limited 605.69 1.71 -1.44 1.56 Buy 23.59 19.66 -44.09 20.00 2.34 2.34 N/A

SIV Silver Chef Limited 312.81 8.54 -1.61 10.64 Buy 11.59 12.17 47.14 -4.74 4.55 4.98 N/A

SVW Seven Group Holdings 2258.36 7.88 -1.87 6.60 Hold 17.58 15.10 -28.90 16.47 5.05 5.08 N/A

MLD MACA Limited 395.88 1.66 -2.35 1.82 Strong Buy 15.96 12.67 -60.83 25.96 4.82 5.42 N/A

CDD Cardno Limited 467.60 0.95 -2.56 0.65 Hold 43.70 38.00 123.54 14.99 0.00 0.00 N/A



� Staple stocks: Food related stocks with overseas exposure will continue to trade at high multiples and worth acquiring after pullback. All Supermarket stocks are going to struggle to hold margins with the race to the bottom on prices. Sector in negative watch as specialty China facing stocks in downgrade cycle while supermarket war will destroy margins for everyone.


� Healthcare stocks: The ever increasing older demographic locally and globally will continue to support this sector with governments cutting back their health care spending. Falling currency will be another free kick to the sector valuation. Sector stuck in “must have” basket with macro, growth and currency in favour.



Change (%)

Consensus Target


2016 EPS

GROWTH

2017 EPS

GROWTH

2016 Div

Yield

2017 Div

YieldNewsflash

AMA AMA Group Limited 473.69 1.02 2.00 1.33 Buy 27.57 20.82 23.33 32.43 2.50 2.94 N/A

FXJ Fairfax Media Ltd 1989.05 0.88 1.73 0.94 Hold 14.33 14.67 -0.68 -2.28 4.61 4.55 N/A

APN APN News & Media 830.23 2.74 1.48 3.72 Buy 14.20 12.18 -52.07 16.58 1.79 3.94 N/A

MYR Myer Holdings Ltd 1125.15 1.39 1.46 1.28 Hold 15.26 14.95 -22.86 2.09 3.75 4.24 Myer response to Writ

AGI Ainsworth Game Tech. 685.35 2.10 1.45 2.07 Hold 13.08 15.33 -6.38 -14.64 4.91 4.29 N/A

CKF Collins Foods Ltd 601.12 6.35 1.28 6.16 Buy 19.43 17.02 32.31 14.14 2.09 2.76 N/A

SKT Sky Network 1618.82 4.21 1.20 4.49 Hold 11.33 14.57 -15.99 -22.24 6.79 6.70 N/A

SLK Sealink Travel Grp 447.10 4.47 1.13 4.84 Buy 20.52 18.47 72.43 11.09 2.52 3.06 N/A

RFG Retail Food Group 1213.01 6.95 0.87 7.01 Hold 17.22 14.76 10.07 16.68 3.83 4.40 N/A

AAD Ardent Leisure Group 1088.30 2.34 0.86 2.41 Hold 19.18 26.00 -11.24 -26.23 5.39 4.23 N/A

TME Trade Me Group 1866.66 4.74 0.85 4.15 Hold 23.39 21.62 11.87 8.21 3.35 3.72 N/A

GUD G.U.D. Holdings 860.83 10.11 0.70 9.81 Hold 18.26 16.63 12.63 9.81 4.47 4.86 Ceasing to be a substantial holder

WEB Webjet Limited 980.01 10.07 0.60 10.92 Buy 39.51 25.69 12.38 53.80 1.36 2.04 N/A

SKC Skycity Ent Grp Ltd 2402.12 3.70 0.54 26.43 Hold 15.05 15.64 27.23 -3.81 5.27 5.25 N/A

WPP WPP Aunz Ltd 950.15 1.12 0.45 1.35 Buy 11.20 10.09 4.17 11.00 5.45 6.52 N/A

BAP Bapcor Limited 1605.78 5.80 0.35 5.93 Buy 32.77 24.89 31.57 31.64 1.89 2.43 N/A

TAH TABCORP Holdings Ltd 3967.52 4.76 0.21 5.17 Hold 22.00 20.34 0.67 8.13 4.99 5.25 TTS: Determines Pacific Consortium proposal is not superior

TEN Ten Network Holdings 340.43 0.94 0.00 1.20 Hold -28.20 -78.33 70.77 64.00 0.00 0.00 N/A

CWN Crown Resorts Ltd 8340.11 11.45 0.00 13.05 Buy 20.58 20.97 -23.96 -1.89 5.04 9.20 Crown to Continue Building Six-Star Hotel Resort in Sydney

NEC Nine Entertainment 910.58 1.05 0.00 1.10 Hold 7.98 9.09 -14.43 -12.21 10.99 9.95 N/A

SUL Super Ret Rep Ltd 1988.18 10.08 0.00 11.04 Buy 18.51 15.37 1.72 20.47 4.05 4.65 N/A

GXL Greencross Limited 789.84 6.80 0.00 7.69 Hold 18.29 16.83 8.62 8.69 2.80 3.03 N/A

DNA Donaco International 303.39 0.37 0.00 0.89 Strong Buy 4.74 4.45 333.80 6.49 3.11 7.12 N/A

ARB ARB Corporation 1369.89 17.30 0.00 17.08 Hold 28.69 26.09 6.21 9.95 1.84 2.01 N/A

CCV Cash Converters 162.71 0.33 0.00 0.40 Hold 8.05 9.17 36.67 -12.20 12.12 6.06 N/A

NWS News Corp.. 715.95 16.80 -0.06 21.91 Hold 29.23 25.80 -10.53 13.31 1.46 1.84 N/A

FLT Flight Centre Travel 3153.43 31.19 -0.13 33.69 Hold 12.54 13.65 -1.61 -8.10 4.74 4.53 N/A

IVC InvoCare Limited 1510.72 13.70 -0.22 12.88 Hold 28.13 25.85 11.12 8.83 2.92 3.16 N/A

TGA Thorn Group Limited 292.76 1.87 -0.27 1.75 Hold 8.84 9.56 3.14 -7.58 6.54 6.43 N/A

REA REA Group 7207.43 54.55 -0.31 60.13 Buy 32.48 28.88 17.42 12.46 1.60 1.77 N/A

BRG Breville Group Ltd 1133.13 8.68 -0.34 8.50 Hold 22.74 20.97 0.81 8.45 3.27 3.50 N/A

PMV Premier Investments 2249.70 14.24 -0.35 15.95 Hold 21.01 19.22 17.88 9.35 3.29 3.74 N/A

SGR Star Entertainment Group 4219.19 5.09 -0.39 6.16 Buy 17.67 17.74 15.01 -0.39 2.53 2.87 N/A

TRS The Reject Shop 244.73 8.44 -0.47 11.27 Hold 11.22 11.59 68.17 -3.22 5.31 5.91 N/A

IEL Idp Education Limited 981.16 3.90 -0.51 4.67 Buy 26.53 23.21 N/A 14.29 2.22 3.36 N/A

AHG Automotive Holdings 1286.70 3.86 -0.52 4.60 Buy 12.25 12.49 6.22 -1.90 5.92 5.93 N/A

ALL Aristocrat Leisure 9820.81 15.30 -0.52 18.03 Buy 25.44 20.70 61.37 22.88 1.63 2.20 N/A

KMD Kathmandu Hold Ltd 364.69 1.80 -0.55 2.01 Buy 11.62 10.54 56.33 10.27 4.88 6.21 N/A

NVT Navitas Limited 1784.46 4.88 -0.61 5.12 Underperform 20.09 20.25 -2.65 -0.78 4.02 4.04 Daily share buy-back notice - Appendix 3E

HVN Harvey Norman 5629.53 5.02 -0.79 5.01 Hold 17.20 15.03 18.77 14.42 4.79 5.92 N/A

BBN Baby Bunting Grp Ltd 304.24 2.40 -0.83 3.15 Hold 29.09 22.43 N/A 29.70 2.33 3.42 N/A

GEM G8 Education Limited 1384.69 3.59 -0.83 3.55 Buy 14.42 13.10 0.74 10.04 6.66 6.71 N/A

APO Apn Outdoor Grp 966.36 5.75 -0.86 6.30 Hold 18.98 16.76 30.14 13.20 3.03 3.44 N/A

VRL Village Roadshow Ltd 728.05 4.46 -0.89 5.33 Buy 13.62 14.07 10.49 -3.17 6.24 6.30 N/A

MTR Mantra Group Ltd 897.56 2.99 -0.99 3.90 Buy 18.20 16.52 13.12 10.16 3.48 4.15 N/A

OML Ooh!Media Limited 745.19 4.49 -1.10 5.41 Buy 18.71 15.54 37.14 20.42 2.85 3.25 Ceasing to be a substantial holder

CTD Corp Travel Limited 1781.40 17.66 -1.34 19.07 Buy 38.64 30.09 46.00 28.44 1.37 1.76 N/A

DMP Domino Pizza Enterpr 5836.23 64.78 -1.40 77.08 Buy 64.06 46.14 41.36 38.85 1.04 1.46 N/A

RCG RCG Corporation Ltd 809.23 1.47 -1.67 1.84 Buy 21.86 16.90 74.68 29.37 3.66 4.63 N/A

JBH JB Hi-Fi Limited 3182.79 27.30 -1.90 30.64 Buy 18.77 15.46 12.23 21.44 3.48 4.18 N/A

SXL Sthn Cross Media 1153.52 1.47 -2.00 1.35 Hold 14.52 12.35 10.27 17.53 4.54 5.31 N/A

ISU Iselect Ltd 430.57 1.81 -2.16 1.61 Buy 39.78 20.57 -36.36 93.41 0.98 0.88 Daily share buy-back notice - Appendix 3E

VTG Vita Group Ltd 496.94 3.19 -2.45 4.71 Buy 14.72 12.32 74.26 19.54 4.35 5.14 N/A

SWM Seven West Media Ltd 1206.43 0.78 -2.50 0.77 Hold 5.61 7.50 -12.56 -25.18 9.69 8.72 N/A

TTS Tatts Group Ltd 6681.76 4.42 -2.86 4.33 Hold 24.31 24.42 0.64 -0.45 3.88 3.91 Tatts Group rejects Pacific Consortium bid

ADH Adairs Limited 276.18 1.61 -3.60 2.15 Buy 9.99 12.35 24.55 -19.09 6.65 6.54 N/A


Change (%)

Consensus Target


2016 EPS

GROWTH

2017 EPS

GROWTH

2016 Div

Yield

2017 Div

YieldNewsflash

MGC Mg Unit Trust 176.18 0.88 1.74 1.22 Hold 12.03 14.34 N/A -16.15 8.31 7.31 N/A

FSF Fonterra Share Fund 700.83 5.88 1.73 6.76 Hold 12.07 11.41 82.75 5.81 6.44 6.48 N/A

FNP Freedom Food Ltd 849.82 4.38 1.39 5.17 Hold 78.75 49.77 -31.29 58.22 0.79 1.26 Appendix 3Y Change in Directors Interests M Perich

GNC GrainCorp Limited 2139.80 9.44 0.96 9.19 Hold 44.98 17.78 0.63 152.99 1.17 2.64 N/A

TGR Tassal Group Limited 604.13 4.04 0.50 4.56 Buy 14.50 14.58 -1.55 -0.57 3.78 3.96 N/A

BAL Bellamy'S Australia 645.87 6.68 0.00 6.77 Underperform 18.02 20.43 321.21 -11.78 1.58 1.57 N/A

CCL Coca-Cola Amatil 7590.09 9.93 -0.10 9.47 Hold 18.35 17.96 7.50 2.22 4.54 4.69 N/A

SHV Select Harvests 477.66 6.49 -0.15 7.08 Hold 14.95 15.83 -48.68 -5.53 5.45 4.08 N/A

ELD Elders Limited 440.64 3.86 -0.26 4.46 Hold 9.62 10.05 12.14 -4.26 0.00 2.28 Change of Directors Interest Notice - R Clubb

TWE Treasury Wine Estate 7720.89 10.43 -0.29 11.01 Hold 33.44 27.09 55.19 23.44 1.86 2.44 N/A

CGC Costa Group Holdings 1088.06 3.40 -0.29 3.45 Buy 23.37 20.00 N/A 16.84 2.65 3.24 N/A

WOW Woolworths Limited 30890.15 23.85 -0.54 23.83 Hold 19.54 19.65 -36.51 -0.53 3.49 3.43 N/A

WBA Webster Ltd 483.31 1.38 -0.72 1.44 Buy 55.20 23.39 -56.14 136.00 0.40 1.45 N/A

WES Wesfarmers Limited 47963.14 42.08 -0.78 43.01 Hold 20.58 17.15 -4.52 20.00 4.54 4.95 Ceasing to be a substantial holder

RIC Ridley Corporation 387.85 1.25 -0.79 1.55 Buy 15.69 14.37 14.63 9.20 2.96 3.52 N/A

BKL Blackmores Limited 1791.83 103.17 -0.82 111.34 Hold 17.44 22.11 141.01 -21.12 4.27 3.42 N/A

MTS Metcash Limited 2185.44 2.22 -0.89 2.18 Hold 11.92 11.62 -10.87 2.54 0.44 0.59 N/A

BGA Bega Cheese Ltd 651.61 4.23 -0.94 5.87 Buy 22.65 21.47 29.15 5.49 2.22 2.25 N/A

BWX BWX Limited 368.26 3.94 -1.25 5.35 Buy 26.05 20.74 N/A 25.62 1.19 2.03 N/A

AAC Australian Agricult. 916.29 1.62 -1.52 2.33 Buy 18.46 14.04 N/A 31.43 0.00 0.00 N/A

A2M The A2 Milk Company 1438.90 1.98 -1.74 2.32 Buy 47.37 27.05 N/A 75.10 0.08 1.06 A2M NZ Filing: Becoming a substantial holder

AHY Asaleo Care Limited 785.25 1.38 -2.83 1.69 Buy 11.96 11.46 -9.92 4.35 6.84 7.13 Change in substantial holding



� Bank stocks: Regulatory and macro worries hang over the sector. Regionals should see more support with financial sector recommendation favouring them. Potential new bank levy will cut into the margins as will capital requirements, APRA lending restrictions and property bubble driven bad provisions. Sector stuck in “core holding” basket with global banking sector despite local housing bubble worries.

Stocks in play: We maintain our preference in ANZ and NAB in the big four and smaller players ABA and MYS.

News Snippet: � Banks, Forex and ASIC – Experienced market watchers should be used to it by now. The jocular tone, the slapdash

spelling, the blatant manipulation of key market benchmarks. And yet there is something so brazen about seeing the chatroom logs of crooked traders revealed in an enforceable undertaking this week by NAB and CBA to settle an Australian Securities and Investments Commission investigation. Chat logs have proved fertile ground for regulators over the past few years with the indiscreet messages between traders forming the basis for trials over the rigging of the Libor rate in the UK. They will no doubt emerge again in the BBSW case which is set to begin in Australia in 2017 in what is shaping up to be a protracted and messy affair. The logs reveal foreign exchange traders at Commonwealth Bank of Australia and National Australia Bank manipulated rates with similar methods, albeit on what seems to be a smaller scale. For most of the time anyway. The Australian Financial Review understands that the clients affected by the trades still do not know what happened behind the scenes. It is likely that none of the clients who were ripped off or otherwise mistreated by the traders and were used as examples in the respective enforceable undertakings will ever know. CBAs EU states that ASIC will not reveal the identities of the individuals involved. Item 4.4 of NAB's EU is almost identical. AFR

� Diversified Financials / Insurance stocks: Asset managers offer the best way to get exposure to market locally and globally while unique financial companies like EQT, FXL and IMF are worth looking at when value emerges. Sector is in “core holding” basket while market selloff will see pullback in this sector and offer a good long term buying opportunity.

News Snippet: � BT Financial Group – BT Financial Group has come out swinging after the corporate regulator launched court

proceedings alleging that the wealth manager failed to act in the best interest of its customers, with chief executive Brad Cooper saying that ASIC's interpretation of general advice would be a "bad policy outcome for Australians". Australian Securities and Regulation Authority filed Federal Court proceedings on Thursday alleging the superannuation arms of Westpac, Westpac Securities Administration and BT Funds Management provided personal financial product advice, advice that is not allowed under their Australian financial services licences. ASIC says during the campaigns, Westpac Securities Administration and BT provided advice on personal financial products, specifically recommending customers move out of their other superannuation funds into Westpac-related superannuation accounts. The proceedings will be an important test case for the wealth industry, according to Mr Cooper. "More and more we are finding people want to have a natural and practical conversation without having to pay for comprehensive personal advice," he said. AFR

� Suncorp – Suncorp will review its systems and processes after the corporate watchdog asked it to pay $530,000 for failing to let almost 30,000 customers know about changes to their loan repayments. Brisbane-based Suncorp has agreed "to engage an external compliance consultant to review its processes and procedures," with the report to be handed to the Australian Securities and Investments Commission. The bank says it has completed its own review into processes relating to system generated letters. ASIC investigated Suncorp after the company itself reported a number of "internal errors" relating to consumer protection provisions between November 2015 and March 2016. "Suncorp failed to notify a large number of consumers of changes in the amount of their loan repayments and, in some cases, failed to advise the consumers of their first direct debit default," ASIC said in a statement. "As a result of these failures, consumers were not given the opportunity to prepare for a change in their repayment obligations or may not


Change (%)

Consensus Target


2016 EPS

GROWTH

2017 EPS

GROWTH

2016 Div

Yield

2017 Div

YieldNewsflash

IPD Impedimed Limited 354.38 0.98 3.70 2.53 Strong Buy -14.70 -13.80 -70.94 -6.50 0.00 0.00 N/A

VRT Virtus Health Ltd 483.87 6.17 2.49 7.85 Buy 14.79 14.38 3.93 2.81 4.61 4.86 N/A

MSB Mesoblast Limited 536.22 1.44 2.49 2.24 Hold -6.42 -6.52 22.70 1.54 0.00 0.00 Mesoblast inks deal with global pharma company

ANN Ansell Limited 3538.74 24.35 1.46 23.07 Hold 18.48 16.72 -19.88 10.53 2.31 2.65 N/A

SHL Sonic Healthcare 8833.89 21.37 0.71 22.29 Hold 20.54 19.39 10.74 5.94 3.48 3.67 N/A

JHC Japara Healthcare Lt 583.31 2.21 0.45 2.37 Hold 18.24 17.82 9.36 2.36 5.25 5.43 N/A

RMD ResMed Inc. 12003.67 8.50 -0.23 9.45 Buy 24.35 22.73 3.01 7.12 1.88 5.46 N/A

PRY Primary Health Care 2080.52 3.98 -0.25 3.98 Hold 19.55 18.77 -16.04 4.15 3.18 3.49 N/A

SRX Sirtex Medical 823.91 14.23 -0.35 22.74 Buy 15.09 16.94 49.06 -10.91 1.83 1.81 N/A

SIP Sigma Pharmaceutical 1374.48 1.27 -0.39 1.25 Hold 23.81 20.16 10.42 18.13 3.29 4.02 Change of Directors Interest Notice

CSL CSL Limited 44771.51 97.80 -0.40 109.74 Hold 28.00 26.40 -13.72 6.06 1.66 1.84 N/A

NAN Nanosonics Limited 925.95 3.09 -0.64 3.40 Hold -4120.00 63.06 96.54 6633.33 0.00 0.00 N/A

SPL Starpharma Holdings 263.50 0.71 -0.70 0.92 Buy -12.79 -39.44 -43.23 67.57 0.00 0.00 N/A

RHC Ramsay Health Care 13646.55 66.99 -0.80 79.27 Buy 28.93 25.75 15.28 12.38 1.79 2.11 N/A

HSO Healthscope Limited 3921.31 2.24 -0.88 2.54 Hold 20.32 20.18 14.42 0.68 3.32 3.39 N/A

API Australian Pharm. 994.29 2.01 -0.99 1.97 Hold 19.74 17.03 20.12 15.91 2.74 3.48 N/A

REG Regis Healthcare Ltd 1366.63 4.50 -1.10 4.79 Hold 26.16 22.17 0.58 18.02 3.81 4.40 N/A

COH Cochlear Limited 6977.34 119.93 -1.29 126.14 Hold 35.99 30.97 21.64 16.18 1.92 2.24 Appendix 3B

MVF Monash Ivf Group Ltd 470.79 1.97 -1.50 2.12 Hold 16.87 15.39 18.22 9.59 4.06 4.57 N/A

FPH Fisher & Paykel H. 4681.42 8.06 -2.30 7.79 Underperform 34.24 28.87 26.42 18.63 1.92 2.35 N/A

MYX Mayne Pharma Ltd 2062.30 1.35 -2.54 1.77 Buy 26.17 16.60 163.29 57.58 0.00 0.00 N/A

EHE Estia Health Ltd 569.55 2.41 -3.21 2.69 Underperform 8.46 11.93 27.74 -29.12 11.75 6.02 Change in substantial holding


Change (%)

Consensus Target


2016 EPS

GROWTH

2017 EPS

GROWTH

2016 Div

Yield

2017 Div

YieldNewsflash

CYB Cybg PLC 3514.83 4.74 0.64 4.70 Hold 20.33 15.42 N/A 31.89 0.00 1.05 N/A

ANZ ANZ Banking Grp Ltd 89932.08 30.73 0.03 28.46 Buy 15.19 13.27 -22.15 14.44 5.21 5.22 Change of Directors Interest Notice

MOC Mortgage Choice Ltd 288.65 2.31 0.00 2.59 Hold 14.26 13.59 0.62 4.94 7.19 7.45 N/A

BEN Bendigo and Adelaide 5997.62 12.69 0.00 10.58 Hold 14.13 14.67 -2.78 -3.67 5.35 5.36 N/A

WBC Westpac Banking Corp 109352.73 32.64 -0.12 31.88 Buy 14.07 13.70 -5.33 2.68 5.70 5.62 N/A

CBA Commonwealth Bank. 142489.63 82.50 -0.23 76.75 Hold 14.90 14.85 0.73 0.32 5.09 5.11 N/A

BOQ Bank of Queensland. 4647.89 11.95 -0.42 11.59 Hold 12.71 12.74 -0.83 -0.21 6.38 6.38 Appendix 3B

NAB National Aust. Bank 82243.92 30.65 -0.49 29.15 Buy 12.87 12.82 -5.34 0.35 6.32 6.08 N/A

GMA Genworth Mortgage 1635.06 3.19 -0.62 3.47 Buy 8.14 8.89 -14.08 -8.42 13.79 9.40 N/A



have been aware that their direct debit payment had failed. Subsequently, some consumers were subject to collections activity, including telephone calls or letters from Suncorp's debt collections staff. ASIC has asked Suncorp to pay $270,000 in fines and the bank a remediation to customers of $260,000. Suncorp said it had apologised to its customers over the system failure. AFR

� Property stocks: We see house prices flattening with most of the positive optimism already priced in the housing stocks. The construction and commercial property stocks still offer improving outlook on new projects, M&A and consolidation. Rising bond yield will put pressure on yield stocks. Sector stuck in “high risk” basket due to housing bubble worries.

News Snippet: � Diploma Group – The downturn in the Perth housing and construction market has claimed a high-profile victim with

listed developer and builder Diploma Group collapsing owing creditors about $40 million. The 40-year-old company, which is controlled by the Di Latte family, appointed Matthew Donnelly, David Hodgson and Andrew Hewitt of Grant Thornton as administrators on Thursday. The appointments cover the ASX-listed Diploma Group and two of its subsidiaries, Diploma Construction (WA) and DGX Construction. Martin Jones and Andrew Smith of Ferrier Hodgson were appointed receivers on December 21. Mr Donnelly told The Australian Financial Review Diploma Group and its subsidiaries owed about $40 million to creditors, which include sub-contractors, the Australian Tax Office, AssetInsure (owned by insurance giant Swiss Re) and a mezzanine lender. "It would be easy to say all commercial builders in Perth have come under margin pressure and Diploma is no exception," said Mr Donnelly. "They also had some troubled projects, which put pressure on the group," he added. In September, Diploma Group reported that it was in dispute with a developer (TRG Properties) over a $40 million contract to build apartments at the Perry Lakes estate in Perth's Western Suburbs. The company also said at the time it was in contractual disputes with a number of sub-contractors, which were the subject of legal proceedings. AFR

� Stockland – Property giant Stockland is the frontrunner to acquire Marshall Baillieu's Minta Farm, the 286-hectare cropping property, which is soon to be rezoned as a massive $1 billion housing estate. While the deal, which could be worth between $150 million and $200 million has to be finalised, The Australian Financial Review understands Stockland has trumped a bid by Shanghai's aggressive land buyer Dahua to snap up the property in Berwick in Melbourne's south east growth corridor. Once rezoned to residential and business use under the draft Minta Farm Precinct Structure Plan, Minta Farm will effectively become a new Melbourne suburb able to accommodate up to 3000 dwellings and an employment precinct that could support about 10,000 jobs. Stockland declined to comment. A well-placed market insider said Stockland had "gone hard" to acquire Minta Farm. The Financial Review reported earlier in December that Stockland along with Lendlease, Satterley Property Group and MAB Corp were bidding to buy Minta Farm. Others understood to have participated in a confidential expressions of interest process run by the Baillieu family's Mutual Trust advisory firm include the Brown Property Group run by former Carlton football player Fraser Brown and the Pask Group, founded by BRW richlister Neville Pask. AFR


Change (%)

Consensus Target


2016 EPS

GROWTH

2017 EPS

GROWTH

2016 Div

Yield

2017 Div

YieldNewsflash

OFX Ozforex Group Ltd 396.00 1.70 3.03 1.85 Buy 16.50 17.71 1.15 -6.80 4.49 4.06 N/A

EML Emerchants Ltd 432.97 1.80 1.70 2.34 Buy 94.47 32.64 -15.56 189.47 0.00 0.00 N/A

HFA HFA Holdings Limited 379.43 2.36 0.85 2.95 Buy 11.65 10.78 0.52 8.07 6.28 8.86 N/A

HGG Henderson Group 2854.20 4.00 0.50 4.71 Buy 16.52 14.75 -30.29 12.02 4.31 4.73 Henderson Group - Director/PDMR Shareholding

BTT BT Investment Mngmnt 3247.54 10.50 0.48 10.55 Hold 21.36 19.63 11.73 8.83 3.81 4.30 N/A

IMF IMF Bentham Ltd 297.87 1.74 0.00 2.05 Buy 11.11 12.79 339.25 -13.19 3.83 4.60 N/A

PPT Perpetual Limited 2247.22 48.17 -0.17 48.09 Hold 17.73 17.37 -2.63 2.08 5.15 5.26 N/A

CGF Challenger Limited 6402.73 11.18 -0.18 10.48 Hold 18.26 16.89 10.37 8.09 2.87 3.10 N/A

AMP AMP Limited 14936.58 5.04 -0.20 5.05 Hold 20.83 14.44 -36.07 44.21 5.54 5.75 N/A

IFL IOOF Holdings Ltd 2707.21 9.00 -0.22 9.02 Hold 15.45 15.79 0.54 -2.15 5.97 5.81 N/A

EQT Equity Trustees 354.98 17.66 -0.23 19.60 Buy 17.87 18.11 -9.07 -1.32 3.77 4.61 N/A

CVO Cover-More Grp Ltd 729.42 1.92 -0.26 1.69 Buy 25.85 22.86 -21.42 13.09 2.89 2.97 N/A

IAG Insurance Australia 14228.82 5.99 -0.33 5.77 Hold 16.03 17.11 -10.52 -6.32 6.85 4.64 IAG to provide small shareholding sale facility

MPL Medibank Private Ltd 7683.67 2.78 -0.36 2.80 Hold 18.70 18.53 51.70 0.90 3.90 4.10 N/A

FXL FlexiGroup Limited 819.17 2.19 -0.45 2.69 Buy 7.83 8.62 -2.37 -9.20 6.81 6.71 N/A

SDF Steadfast Group Ltd 1634.46 2.17 -0.46 2.34 Hold 19.78 19.55 18.76 1.17 2.71 3.00 N/A

ASX ASX Limited 9559.73 49.11 -0.55 45.87 Underperform 22.44 21.89 4.76 2.51 4.01 4.10 N/A

BLA Blue Sky Limited 478.66 7.05 -0.70 8.73 Buy 28.34 18.26 27.55 55.18 2.31 3.50 N/A

PTM Platinum Asset 3103.53 5.25 -0.76 5.22 Hold 14.37 17.27 5.22 -16.81 6.41 5.58 N/A

MQG Macquarie Group Ltd 29842.04 86.93 -0.86 84.53 Buy 14.69 14.10 29.60 4.15 4.43 4.91 N/A

SUN Suncorp Group Ltd 17598.29 13.52 -0.88 13.41 Buy 15.54 14.07 -3.52 10.42 5.20 5.67 N/A

MFG Magellan Fin Grp Ltd 4110.91 23.66 -0.96 26.55 Buy 20.69 21.09 27.83 -1.86 3.87 3.60 N/A

ECX Eclipx Group Limited 1002.39 3.74 -1.32 4.38 Buy 16.78 14.55 12.56 15.31 3.78 4.25 N/A

NHF NIB Holdings Limited 2124.78 4.76 -1.65 4.89 Hold 21.84 19.67 32.00 11.05 2.92 3.38 N/A

QBE QBE Insurance Group 17419.20 12.47 -1.81 12.87 Buy 17.17 13.83 -15.92 24.16 4.31 4.75 N/A

CCP Credit Corp Group 847.63 17.50 -2.23 19.03 Buy 18.25 14.82 15.05 23.19 2.76 3.34 N/A



� IT stocks: IT sector offers a number of different business models and we see good growth in the sector despite the low global growth outlook. The continued online transition from number of sectors will continue to favour this sector. Sector stuck in “high growth potential” basket but carries execution risk in global/local growth plans.

News Snippet: � Covata – Ted Pretty has been hired as chief executive of Covata, an ASX-listed company which has

telecommunications company TPG Telecom as its largest shareholder. Covata's shares are trading at around 10¢ after having been as high as 44¢ in mid-February. The company's main focus is cloud-based data security services for mobile phone services and other networks. The appointment represents something of a homecoming for Mr Pretty, who was a high-profile executive for Telstra for eight years from 1997. He departed from Hills Ltd, the company best known as being the inventor of the Hills hoist clothesline, in May 2015 after an action-packed three years at the helm. Mr Pretty tried to transform the staid Adelaide company from an old-world manufacturer into a growth company in electronics, security systems and healthcare technology. Mr Pretty, who had a penchant for wearing black skivvies at Telstra at the height of the dot com boom in 1999 and 2000, also runs a private investment vehicle called Black Skivvy Ventures, which invests in new technology business models. He is also on the advisory board of the Lighthouse Accelerator based at Sydney's Barangaroo precinct which is fostering start-up businesses. In a statement to the ASX on Friday, Covata said Mr Pretty would start as CEO on January 23, 2017. He will replace existing chief executive Trent Telford, who will become chairman. Mr Pretty said he would also be investing in the company as well as running it. AFR

� Telco stocks: This sector will benefit from industry consolidation via M&A while the big telco in Australia and NZ continue to deliver stable yield in low growth environment. The transition to online models and smart phone take up will continue to drive the usage of data from record levels to new record levels. Sector stuck in “core holding” basket with sector consolidation and economy in transition to online models.


� Utility stocks: We see risks to the sector with falling commodity prices, rising renewables with battery technology and potential interest rate rises in US. Sector in high risk category due to increased interest rate rise outlook&worth looking at


Change (%)

Consensus Target


2016 EPS

GROWTH

2017 EPS

GROWTH

2016 Div

Yield

2017 Div

YieldNewsflash

FET Folkestone Edu Trust 618.31 2.54 2.42 2.72 Buy 18.11 16.82 7.06 7.66 5.24 5.55 N/A

GMG Goodman Group 12702.76 7.25 2.11 7.45 Buy 18.09 16.98 7.81 6.57 3.31 3.52 Change in substantial holding

SCG Scentre Grp 23799.61 4.56 2.01 4.74 Hold 20.00 19.08 1.84 4.82 4.65 4.85 N/A

MGR Mirvac Group 7928.94 2.18 1.87 2.26 Buy 16.75 15.35 6.47 9.08 4.56 4.68 N/A

VVR Viva Energy REIT 1635.66 2.41 1.69 2.62 Buy 47.25 17.99 N/A 162.75 2.12 5.56 Viva Energy REIT (VVR) Year End Timetable 2016

INM Iron Mountain Inc 2145.85 45.16 1.57 55.50 Buy 30.39 26.60 -11.34 14.23 5.58 6.12 N/A

CMW Cromwell Prop 1723.72 1.00 1.53 0.99 Underperform 11.20 12.13 6.10 -7.72 8.13 8.14 N/A

DXS Dexus Property Group 9389.09 9.84 1.44 9.06 Hold 17.40 17.32 1.21 0.41 4.42 4.56 N/A

RFF Rural Funds Group 359.73 1.76 1.44 1.71 Strong Buy 7.73 13.54 150.40 -42.88 4.88 5.28 N/A

GOZ Growthpoint Property 2129.53 3.36 1.20 3.29 Hold 15.56 14.67 3.02 6.02 6.14 6.43 N/A

IOF Investa Office Fund 2892.16 4.76 1.06 4.39 Hold 18.18 17.63 1.94 3.14 4.14 4.20 N/A

SCP Sca Property Group 1629.78 2.24 0.90 2.14 Hold 16.13 15.66 7.66 2.97 5.41 5.76 N/A

SGP Stockland 11063.17 4.64 0.87 4.79 Hold 16.62 15.73 7.61 5.64 5.30 5.54 N/A

CHC Charter Hall Group 1968.66 4.81 0.84 5.03 Hold 15.99 15.27 9.14 4.69 5.59 5.78 N/A

AOG Aveo Group 1877.72 3.25 0.62 3.85 Buy 19.40 17.38 56.54 11.64 2.48 2.77 N/A

GPT GPT Group 9061.70 5.07 0.60 5.21 Hold 17.42 16.96 3.79 2.75 4.64 4.83 N/A

ARF Arena REIT. 431.05 1.86 0.54 2.11 Buy 16.76 15.46 -11.47 8.43 5.89 6.42 N/A

GDI GDI Property Grp 533.43 1.00 0.51 1.09 Buy 11.18 10.93 8.54 2.25 7.79 7.84 N/A

IDR Industria REIT 345.80 2.13 0.47 2.13 Buy 10.42 11.70 24.70 -10.94 7.30 7.51 N/A

CQR Charter Hall Retail 1738.49 4.30 0.47 4.24 Underperform 14.18 14.24 1.88 -0.43 6.54 6.56 N/A

GHC Gen Healthcare REIT 390.33 1.78 0.00 1.99 Hold 17.89 17.45 9.09 2.51 4.97 5.06 Appendix 3B - Performance Fee Unit Issue

GTY Gateway Lifestyle Group 658.68 2.20 0.00 2.53 Buy 12.85 13.41 67.09 -4.19 5.23 5.50 N/A

BWP BWP Trust 1946.42 3.03 0.00 2.90 Underperform 18.13 17.62 5.86 2.92 5.55 5.68 N/A

VCX Vicinity Centres 11836.37 2.99 0.00 3.16 Hold 15.94 16.25 1.77 -1.92 5.96 5.82 N/A

NSR National Storage 757.30 1.51 0.00 1.63 Buy 17.19 16.36 10.69 5.07 5.79 6.05 N/A

VLW Villa World Ltd. 256.72 2.26 0.00 2.68 Buy 7.47 7.08 23.22 5.45 7.96 8.32 N/A

AVN Aventus Retail Fund 910.73 2.30 0.00 2.44 Buy 19.00 12.64 N/A 50.37 4.37 6.91 N/A

INA Ingenia Group 478.04 2.70 0.00 3.38 Strong Buy 19.61 15.08 14.72 30.02 3.38 4.48 N/A

WFD Westfield Corp 19180.77 9.21 -0.22 10.40 Buy 21.08 19.88 -15.29 6.06 3.88 3.89 N/A

ABP Abacus Property Grp. 1711.25 2.98 -0.33 3.07 Hold 13.47 12.68 -6.37 6.21 5.70 5.91 N/A

LLC Lend Lease Group 8494.16 14.52 -0.34 15.83 Buy 11.96 11.28 13.85 5.99 4.13 4.46 N/A

HPI Hotel Property 413.48 2.82 -0.35 3.17 Buy 15.11 14.10 9.80 7.14 6.38 6.91 N/A

TIX 360 Cap Indust Fund 546.85 2.57 -0.39 2.72 Hold 14.01 11.47 -20.22 22.07 8.48 8.48 N/A

AJA Astro Jap Prop Group 400.31 6.55 -0.76 7.40 Buy 11.87 11.20 34.31 5.98 5.50 6.41 N/A

CWP Cedar Woods Prop. 397.61 4.96 -1.59 5.69 Buy 9.07 8.83 3.39 2.80 5.68 5.91 N/A


Change (%)

Consensus Target


2016 EPS

GROWTH

2017 EPS

GROWTH

2016 Div

Yield

2017 Div

YieldNewsflash

ALU Altium Limited 1010.47 7.98 2.84 9.17 Hold 35.56 27.03 26.65 31.56 2.45 2.81 N/A

NTC Netcomm Wireless 307.29 2.15 2.38 3.94 Buy 186.96 537.50 -17.86 -65.22 0.00 0.00 Director Appointment/Resignation

CSV CSG Limited 227.01 0.73 2.11 1.00 Hold 9.42 9.67 10.00 -2.60 12.41 10.62 N/A

WTC WiseTech Global Ltd 1642.05 5.73 1.42 5.59 Buy 116.46 59.07 N/A 97.15 0.00 0.35 N/A

HSN Hansen Technologies 688.55 3.83 1.06 4.35 Buy 26.41 23.35 32.42 13.10 1.77 1.80 N/A

GBT GBST Holdings.. 259.90 3.87 1.04 4.77 Buy 18.91 17.12 -22.03 10.46 2.79 2.95 N/A

CPU Computershare Ltd 6730.74 12.44 0.97 11.17 Hold 17.42 16.81 -8.44 3.65 2.63 2.91 N/A

CL1 Class Limited 330.66 2.85 0.71 3.71 Buy 58.56 40.71 N/A 43.84 1.33 1.54 N/A

IFM Infomedia Ltd 228.46 0.74 0.68 0.81 Buy 21.61 18.50 -23.46 16.79 3.95 4.05 N/A

ACX Aconex Limited 969.99 4.93 0.61 7.59 Buy 107.17 78.25 542.31 36.96 0.00 0.00 CFO Announced and Signs Enterprise Agreement with AECOM

NXT Nextdc Limited 1014.14 3.58 0.28 4.66 Buy 221.50 67.55 138.63 227.92 0.00 0.00 N/A

IRE IRESS Limited 1988.03 11.71 0.09 12.42 Hold 25.07 22.26 14.42 12.63 3.83 4.24 N/A

TNE Technology One 1723.15 5.50 0.00 5.95 Hold 42.25 36.67 15.19 15.24 1.70 2.00 N/A

LNK Link Administration 2684.09 7.44 -0.27 8.39 Hold 26.78 22.89 N/A 16.99 1.01 2.38 N/A

MYO MYOB Group Limited 2175.75 3.62 -0.28 3.92 Buy 23.06 20.69 14.60 11.46 3.09 3.43 N/A

CAR Carsales.Com Ltd. 2679.69 11.03 -0.63 12.50 Buy 24.36 22.19 4.72 9.75 3.37 3.68 N/A

ISD Isentia Group Ltd 558.00 2.77 -0.72 2.85 Buy 17.37 16.01 13.60 8.46 2.89 3.18 N/A


Change (%)

Consensus Target


2016 EPS

GROWTH

2017 EPS

GROWTH

2016 Div

Yield

2017 Div

YieldNewsflash

AYS Amaysim Australia 341.28 1.96 5.11 2.44 Buy 17.30 12.95 121.57 33.63 4.11 5.22 N/A

SDA Speedcast Int Ltd 790.77 3.40 2.10 4.90 Buy 20.26 12.68 3.01 59.72 2.47 3.29 N/A

SPK Spark New Zealand 6029.17 3.30 0.30 2.87 Buy 17.92 16.46 10.51 8.85 7.15 7.18 N/A

CNU Chorus Limited 1538.42 3.79 0.26 2.76 Buy 16.11 12.94 -1.77 24.45 5.04 5.30 N/A

TPM Tpg Telecom Limited 5727.19 6.73 -0.30 9.28 Buy 16.24 14.89 39.13 9.07 2.31 2.36 N/A

TLS Telstra Corporation. 60553.49 5.04 -0.59 5.19 Hold 14.48 14.69 1.75 -1.45 6.26 6.27 N/A

VOC Vocus Comms Ltd 2419.38 3.84 -1.54 5.60 Hold 12.85 11.16 66.69 15.07 4.25 4.66 N/A



quality growing yield above 7%.



Change (%)

Consensus Target


2016 EPS

GROWTH

2017 EPS

GROWTH

2016 Div

Yield

2017 Div

YieldNewsflash

AGL AGL Energy Limited. 14757.25 22.18 1.05 21.27 Buy 21.11 19.24 10.15 9.73 3.07 3.84 N/A

AST AusNet Services 5472.98 1.55 0.98 1.60 Hold 14.97 19.62 24.59 -23.70 5.59 5.74 N/A

SKI Spark Infrastructure 3952.73 2.37 0.85 2.54 Buy 23.01 22.36 -9.59 2.91 6.08 6.46 N/A

APA APA Group 9638.76 8.68 0.35 9.27 Hold 47.53 39.28 -20.26 21.02 4.82 5.08 N/A

EPW ERM Power Limited 318.94 1.27 0.00 1.18 Buy 15.12 23.87 -36.38 -36.65 9.49 8.46 N/A

DUE Duet Group 6861.19 2.82 0.00 2.75 Hold 34.09 28.78 66.72 18.46 6.27 6.56 N/A

IFN Infigen Energy 694.71 0.88 -1.12 1.17 Buy 117.33 31.43 115.96 273.33 0.00 0.00 N/A

EWC Energy World Corpor. 450.88 0.26 -1.92 0.80 Buy N/A N/A N/A N/A N/A N/A N/A



Macro Charts

Market (S&P 200) – Central banks updates and US election has passed& Republican Party holding all three levels of

government&.deflation worries over&US/China inflation driving markets higher&High USD, high bond yield, US fiscal

policy uncertainties and EU worries to test stretched valuations over the next three weeks!!!

Volatility Index (XVI) – As expected profit taking on macro risk has popped the volatility index from the lows&now

pulling back from the six month high to two year lows&profit taking risk heightened!!!



Currency (AUDUSD) – Global trade worries, US Fed rate hike plans and weak GDP expected to weigh on AUD while stronger commodities continue to support.

US Dollar Index (DXY) – USD optimism post-election hits new levels after US Fed moved hawkish.



Bond Yield (10 year Bond) – US election result starts to question US Fed rate hike outlook for 2016&.post-election

yield squeeze in play&.new 2016 highs&potential to reach 2015 highs (i.e. 3%) on US Fed hawkishness.

US Bond Yield (10 year Bond) – US post-election yield squeeze in play&.new 2016 high&beating 2015 highs (i.e. 2.5%)

on US Fed hawkishness.



GOLD (Spot Gold in AUD) – Global market uncertainty expected to drive gold recovery&US market worries, Global

Trade War risks and EU break up worries!!! The de-rating on the back of USD strength&expect that to reverse.

WTI Oil (West Texas Intermediate Oil) – Weaker global growth/trade outlook is likely to weigh on oil expectations&

OPEC deal delivering support&now range bound between $40 (i.e. OPEC deal) and $60 (i.e. US Shale)!!!



Baillieu Holst Research

Monthly Top Picks Last Published – 02nd December 2016

Changes this month

EVT replaced SHV

SDA replaced VOC

Current Top Picks

Analyst: Nicolas Burgess > Top Picks: QMS, SDF

Analyst: Nick Caley > Top Picks: MTR, EVT

Analyst: Josh Kannourakis > Top Picks: EPD, VRS

Analyst: Luke Macnab > Top Picks: ACX, SDA

Analyst: Warren Edney > Top Picks: SLR, HRR

Top Picks Performance

92.00

94.00

96.00

98.00

100.00

102.00

104.00

Top Picks Market



Quant Strategy Model Portfolio

Small caps back on the menu at discount prices

Last Published – 23rd November 2016

Energy – large (WPL), small (AWE, KAR)

Metals and Mining – large (BHP, RIO)

Gold – large (NCM), mid (NST), small (EVN)

Capital Goods – micro (ANG, DCG, GNG)

Transport – large (SYD, TCL)

Consumer Services – small (IPH, MTR, SLK)

Media – micro (EVT)

Health Care – large (CSL, RHC), micro (MVP)

Banks – large (ANZ, NAB)

Diversified Financials – small (IMF)

Information Technology – small (ALU, HSN, IFM), micro (EPD)

Telecommunications – mid (TPM, VOC), micro (SDA)

Model Portfolio Performance

100.00

150.00

200.00

250.00

300.00

350.00

400.00

450.00

500.00

Benchmark Index

Portfolio Market Cap Weighted Index

Portfolio Equal Weighted Index



SHIELD – Sustainable High Yield

Death of yield trade is overblown

Last Update – 09th December 2016

Note: This report is a Quantitative Strategy product. The report uses consensus rating and

forecast data from Thomson/IBES to get coverage of the whole market and avoid a house skew,

and as such sometimes the highlighted themes, sectors and stocks will not match our analysts

view.

Macro Outlook: Global markets continue their positive momentum on-the-back of the strength of

the recovery in the US and China, however stretched valuations are starting to weigh. The

improving inflation outlook and US Fed rate hike expectations have driven the bond yields higher.

An improving outlook for interest rates and strong commodity prices has driven a better yield

outlook for the two major sectors of the Australian market. We continue to be positive on the

premium to bond sustainable yield trade in an improving inflationary outlook. We expect the US

Fed to be the only central bank to raise rates in 2017, while the rate of change will be slower than

what the market is expecting.

Cheap Picks: CWP and VLW are the low growth cheap yield picks from the SHIELD screen that

have average earnings and cash flow per share growth of below 10%; an average of price-

earnings and price-cash flow below 10x; a dividend yield above 5% and; a BUY rating.

SHIELD Top 20 picks are: large cap – WBC, ANZ and TLS; small cap – IMF, MLD, VTG, OFX,

VLW, AYS, RRL, CSV, NEC, PTM, HFA, TRS and WPP; and micro-cap – GNG, NCK, DTL and

SDG.


80.00

100.00

120.00

140.00

160.00

180.00

200.00

220.00

S&P 300 Price Index S&P 300 Accum Index SHIELD Top 20 Weighted Accum Index SHIELD Top 20 Average Accum Index



GARY – Growth At Reasonable Yield

Making macro risk great again

Last Update – 13th December 2016

Note: This report is a Quantitative Strategy product. The report uses consensus rating and

forecast data from Thomson/IBES to get coverage of the whole market and avoid a house skew,

and as such sometimes the highlighted themes, sectors and stocks will not match our analysts

view.

Macro Outlook: Global markets are beginning to digest the stretched valuations, high yields and

strong currency ahead of the US Fed meeting. The aggregate policy outlook from the new

administration is expected to push up inflation and debt in the process of raising growth. The

inflation rally since October has been running on better than expected US and China economic

data, US Fed rate cycle expectations and potential fiscal stimulus in the US. The market will soon

move from optimism to execution risk with a rising interest rate outlook. We have seen a rotation

out of growth industrials and into financials and resources during the recent rally. As the growth

benchmark rises with interest rates, we expect the market to return to small cap industrials as the

large cap growth outlook is capped by weak economic growth. We expect to see a higher level of

macro volatility in 2017 due to US/China growth and EU breakup risks.

GARY (Growth At Reasonable Yield) screen allows us to pick stocks with strong yield, solid

growth and cheap valuation multiples compared to the overall historical market trend.

GARY Industrial picks are: small-cap (CWP, VLW, HFA, WPP, VTG, FXL, AJA, AYS and GDI);

and micro-cap (AFG).

GARY Resource and related picks are: None.


50.00

100.00

150.00

200.00

250.00

300.00

350.00

May 2012

Aug 2012

Nov 2012

Feb 2013

May 2013

Aug 2013

Nov 2013

Feb 2014

May 2014

Aug 2014

Nov 2014

Feb 2015

May 2015

Aug 2015

Nov 2015

Feb 2016

May 2016

Aug 2016

Nov 2016

S&P 300 Price Index S&P 300 Accum Index

G10 Indust Avg Accum Index G10 Avg Accum Index



US market ignoring the currency

driven downgrades!!!

Asset allocation model Q4 update > short

fixed income, long equities!!!

BAILLIEU HOLST

Baillieu Holst Ltd ABN 74 006 519 393 www.baillieuholst.com.au

This document has been prepared and issued by:

Baillieu Holst Ltd

ABN 74 006 519 393

Australian Financial Service Licence No. 245421

Participant of ASX Group Participant of NSX Ltd

Analysts’ stock ratings are defined as follows:

Buy: The stock’s total return is expected to increase by at least 10-15 percent from the current share price over the next 12 months.

Hold: The stock’s total return is expected to trade within a range of ±10-15 percent from the current share price over the next 12 months.

Sell: The stock’s total return is expected to decrease by at least 10-15 percent from the current share price over the next 12 months.

Disclosure of potential interest and disclaimer:

Baillieu Holst Ltd (Baillieu Holst) and/or its associates may receive commissions,

calculated at normal client rates, from transactions involving securities of the companies

mentioned herein and may hold interests in securities of the companies mentioned herein

from time to time. Your adviser will earn a commission of up to 55% of any brokerage

resulting from any transactions you may undertake as a result of this advice.

When we provide advice to you, it is based on the information you have provided to us

about your personal circumstances, financial objectives and needs. If you wish to rely on

our advice, it is important that you inform us of any changes to your personal investment

needs, objectives and financial circumstances.

If you do not provide us with the relevant information (including updated information)

regarding your investment needs, objectives and financial circumstances, our advice may

be based on inaccurate information, and you will need to consider whether the advice is

suitable to you given your personal investment needs, objectives and financial

circumstances. Please do not hesitate to contact our offices if you need to update your

information held with us. Please be assured that we keep your information strictly

confidential.

No representation, warranty or undertaking is given or made in relation to the accuracy of

information contained in this advice, such advice being based solely on public information

which has not been verified by Baillieu Holst Ltd.

Save for any statutory liability that cannot be excluded, Baillieu Holst Ltd and its employees

and agents shall not be liable (whether in negligence or otherwise) for any error or

inaccuracy in, or omission from, this advice or any resulting loss suffered by the recipient

or any other person.

Past performance should not be taken as an indication or guarantee of future performance,

and no representation or warranty, express or implied, is made regarding future

performance. Information, opinions and estimates contained in this report reflect a

judgment at its original date of publication and are subject to change without notice. The

price, value of and income from any of the securities or financial instruments mentioned in

this report can fall as well as rise. The value of securities and financial instruments is

subject to exchange rate fluctuation that may have a positive or adverse effect on the price

or income of such securities or financial instruments.

Baillieu Holst Ltd assumes no obligation to update this advice or correct any inaccuracy

which may become apparent after it is given.

Baillieu Holst Ltd

ABN 74 006 519 393

Australian Financial Service Licence No. 245421 Participant of ASX Group Participant of NSX Ltd www.baillieuholst.com.au Melbourne (Head Office) Address Level 26, 360 Collins Street Melbourne, VIC 3000 Australia Postal PO Box 48, Collins Street West Melbourne, VIC 8007 Australia Phone +61 3 9602 9222 Facsimile +61 3 9602 2350 Email [email protected] Adelaide Office Address Ground Floor, 226 Greenhill Road, Eastwood SA 5063 Postal PO Box 171 Fullarton SA 5063 Phone +61 8 7074 8400 Facsimile +61 8 8362 3942 Email [email protected] Bendigo Office Address Level 1, 10-16 Forest Street Bendigo, VIC 3550 Postal PO Box 84 Bendigo, VIC 3552 Phone +61 3 4433 3400 Facsimile +61 3 4433 3430 Email [email protected] Geelong Office Address 16 Aberdeen Street Geelong West Vic 3218 Postal PO Box 364 Geelong Vic 3220 Australia Phone +61 3 5229 4637 Facsimile +61 3 4229 4142 Email [email protected] Gold Coast Office Address Suite 202 Level 2, Eastside Building 6 Waterfront Place, Robina QLD 4226 Phone +61 7 5628 2670 Facsimile +61 7 5677 0258 Email [email protected] Newcastle Office Address Level 1, 120 Darby Street Cooks Hill, NSW 2300 Australia Postal PO Box 111 The Junction, NSW 2291 Australia Phone +61 2 4037 3500 Facsimile +61 2 4037 3511 Email [email protected] Perth Office Address Level 10, 191 St Georges Terrace Perth WA 6000 Australia Postal PO Box 7662, Cloisters Square Perth, WA 6850 Australia Phone +61 8 6141 9450 Facsimile +61 8 6141 9499 Email [email protected] Sydney Office Address Level 40, 259 George Street Sydney, NSW 2000 Australia Postal PO Box R1797 Royal Exchange, NSW 1225 Australia Phone +61 2 9250 8900 Facsimile +61 2 9247 4092 Email [email protected]

Sunset Strip - E.L. & C. Baillieu Limited · LAST SUNSET STRIP FOR 2016 &SEE YOU IN 2017 !!! MERRY...

Documents

Transcript of Sunset Strip - E.L. & C. Baillieu Limited · LAST SUNSET STRIP FOR 2016 &SEE YOU IN 2017 !!! MERRY...