Oil price weighs on Energy shares. ASX set to open lower

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1 Oil price weighs on Energy shares ASX set to open lower Powered by wise-owl.com

2 YESTERDAY IN THE INTERNATIONAL MARKETS Global Ticker Daily Change Global Markets Retreat; Oil Price Weighs on Energy Shares U.S. stocks declined the most in four weeks, as sliding crude prices and lackluster consumer spending data revived encouraged investors to take profit after the most recent stock market rally. The S&P 500 Index retreated 0.6 percent to 2, at 4 p.m. in New York. The Nasdaq Composite Index sank 0.9 percent, after coming within 1 percent of a record yesterday. A report overnight showed consumer purchases climbed a bit more than anticipated in June, exceeding a gain in incomes that prompted American households to tap into savings. Data on employment, durable-goods orders and factory activity are due later this week. European stocks slid for a second day as lenders deepened their declines, investors assessed mixed earnings, and crude prices weighed on oil companies. S&P % Dow Jones -0.49% NASDAQ -0.90% STOXX % FTSE % DAX % Crude Oil -1.37% Gold +0.96% The Stoxx 600 slipped 1.3 percent to at the close of trading. Shares slid yesterday as investor skepticism overshadowed stress-test results showing most of the region s banks would keep an adequate level of capital in a crisis.

3 THE ASX YESTERDAY IN REVIEW AUS Ticker Change Stock Market Declines as RBA Lowers Cash Rate The Australian share market drifted lower on Wednesday. Even though the rate cut of the Reserve Bank of Australia (RBA) triggered shortterm buying, overall the trend could not be reversed. The RBA decided to lower the official cash rate by 25 basis points to a record low of 1.50 per cent. The board believes that while business conditions are good and non-mining investment is growing in parts of the economy shielded from weak commodity prices, a further cut will boost the labour market and economic growth. The S&P/ASX 200 fell 47 points or 0.8 per cent to 5541 points. All sector declined, while Energy shares were hit particularly hard after crude oil prices slumped overnight. The Energy sector fell 3.2 per cent as a group, while industrial and resource stocks fell more than 1 per cent as well. Seven West Media (SWM) slumped over 18 per cent while competitor Nine Entertainment (NEC) dropped 14 per cent. Investors reacted to Seven West s profit announcement and outlook statement as the company expects EBIT to fall per cent next year due to challenging market conditions and higher content costs. ASX % ALL ORDS -0.85% CBA -0.50% BHP -2.19% WBC -0.87% ANZ -0.19% ADA -1.29% TFC +0.64% MLD +1.11%

4 DAILY PRICE ACTIVITY AUSTRALIA ASX200 price action yesterday

5 UPCOMING DIVIDENDS Tasty dividends & distributions CODE DATE CODE COMPANY COMPANY NAME EX DIVIDEND ANNOUNCEMENT PAY DATE AMOUNT FRANKING % EZL Euroz 02 Aug Aug HVST Betashares Australian Dividend Harvester Fund 02 Aug Aug GSBC17 TB 6.00% M 04 Aug Aug BKI BKI Investment Company 05 Aug Aug DJW Djerriwarrh Investments 05 Aug Aug AMH AMCIL 08 Aug Aug OZG Ozgrowth 08 Aug Aug WIC Westoz Investment Company 08 Aug Aug AFI AFIC 09 Aug Aug FRI Finbar Group 11 Aug Sep GSIC22 TIB +1.25% M 11 Aug Aug Courtesy of

6 WHATS HOT? WHATS NOT? SGR.asx - steaming hot QHL.asx - cooling down DATE CODE COMPANY ANNOUNCEMENT Wise-owl recommended to buy The Star Entertainment Group in October 2015 at $5.02. The stock is currently trading at an all-time high as investors seek exposure to stable companies with a strong dividend yield. Wiseowl is attracted to SGR s profit growth trajectory, distribution yield and presence in New South Wales and Queensland. Even though a number of MOUs and contracts have been secured and sales have risen during the past few years, the company remains cash flow negative as costs have increased substantially. Wise-owl recommended to sell QHL back in March 2014 at 18 cents due to concerns about cash burn and capital requirements.

7 ECONOMIC NEWS What to look out for: DATE CODE COMPANY Chinese Services data expected to show steady expansion U.S. employment, services and manufacturing data to be published tonight

8 NEWSWORTHY This caught our attention.. Crusader DATE CODE Resources COMPANYPublishes High Grade Gold Results at Juruena Brazil focused resource exploration and development company Crusader Resources (ASX:CAS) published high-grade gold results from its drilling program at its 100% owned Juruena gold project. Crusader Resources states that the positive drilling results have encouraged Crusader to extend its drilling program at Juruena. To date 52 holes have been completed to a depth of 5,800m while the company now seeks to drill as low as 7,200m. The data was received from the first 32 holes from the Querosene prospect at Juruena, while results from the Dona Maria prospect is pending. If results remain encouraging the company will likely extend its drilling program to two further targets nearby. Managing Director Rob Smakman is pleased with the results at Querosene and encouraged by Dona Maria. Click here to read the full story

9 LATEST UPDATE FROM WISE-OWL Freelancer Ltd (FLN) Growth CODE Portfolio COMPANY Update: Freelancer Ltd (FLN) ANNOUNCEMENT Wise-owl recommended to buy Freelancer Limited (FLN) on 3 June 2015 at $1.14 and we reiterated our buy advice on 10 September 2015 at $1.26. FLN was last traded at $1.70 and this position is part of our Growth Portfolio. Freelancing and crowdsourcing marketplace provider Freelancer Limited posted record results for the half year ended 30 June 2016 as revenue rose 56% to $26.2 million. The driver for growth was accelerating volume in gross payments which quadrupled to $354.9 million, compared to $64.1 million during the same period last year. Gross Payment Volume, also referred to as GPV, is the total payments that go through Freelancer and Escrow. GPV is an important metric for Freelancer as most of its revenue is derived as a percentage from total transactions. ASX:FLN Hold 56% Revenue Growth EBITDA Positive Read further commentary here

10 OUR VIEWS AT A GLANCE Find below a summary of Wise-owl s current market views CODE COMPANY ANNOUNCEMENT We continue to focus on small-mid cap stocks There are individual opportunities on the ASX 200 We feel comfortable with our exposure to the gold sector We see little upside for US stocks in the medium-term

11 A WISE-OWL PUBLICATION Presented by Simon Herrmann DATE CODE COMPANY ANNOUNCEMENT Wise-owl.com Discovering the Bluechips of Tomorrow Wise owl specializes in identifying emerging companies and financial market trends very early in their life cycle. The significant capital growth that often follows has earned wise owl a formidable reputation for discovering the bluechips of tomorrow. Investors, executives, and institutions harness this expertise through wise owl s research, and capital market services. Phone: Phone (Int.): Fax: Post: Suite 4.02 Level 4,139 Macquarie St, Sydney, info@wise-owl.com Follow us on Twitter Like us on Facebook Linkedin Add me on Linkedin:

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