ASX closes marginally higher. ASX set for a flat start

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1 ASX closes marginally higher ASX set for a flat start Powered by wise-owl.com

2 YESTERDAY IN THE INTERNATIONAL MARKETS Global Ticker Daily Change US and European Markets Close Little Changed U.S. stocks closed little changed, with the S&P 500 holding near a fourweek high, as mixed data offered little clarity on whether the economy is strengthening enough to bear higher interest rates as early as next month. The S&P 500 fell less than 0.1 percent to 2, at 4 p.m. in New York, after trading in the narrowest range in six weeks. Reports yesterday showed contracts to purchase previously owned homes climbed last month by the most since October 2010, while orders for business equipment unexpectedly declined in April for a third straight month, indicating American manufacturers continue to pull back. Separate data showed jobless claims fell for a second week. European stocks were little changed, after their biggest two-day rally since February, as advances in carmakers and miners offset a drop in banks. The Stoxx Europe 600 Index closed 0.1 percent higher, erasing an earlier slide of as much as 0.3 percent. S&P % Dow Jones -0.13% NASDAQ +0.14% STOXX % FTSE % DAX % Crude Oil -0.16% Gold -0.28%

3 THE ASX YESTERDAY IN REVIEW AUS Ticker Change Australian Share Market Closes Marginally Higher The market dropped initially despite a positive lead from international markets overnight and recovered slowly during the afternoon session to close marginally higher. The benchmark index ASX200 gained 15.6 points or 0.29% and finished at points. Most sectors finished in the green. Energy and Materials added the most, gaining 2% and 1.7% respectively, boosted by a 2% jump in crude oil prices overnight. Staples was the worst performer, shedding 2%, as Wesfarmers Limited (WES) declined 2% and Woolworths Limited (WOW) dropped 0.7%. The Australian Bureau of Statistics announced that new capital expenditure (capex) in the private sector was 5.2% lower than the previous quarter. ASX % ALLORDS +0.28% CBA -0.05% BHP +2.67% WBC +0.56% NAB -0.47% OZL +1.26% RLE % AEB %

4 DAILY PRICE ACTIVITY AUSTRALIA ASX200 price action yesterday

5 UPCOMING DIVIDENDS Tasty dividends & distributions DATE CODE COMPANY ANNOUNCEMENT ASX CODE COMPANY NAME EX DIVIDEND PAY DATE AMOUNT FRANKING % PTB PTB Group 30 May Jun WBCPD May Jun NABPB May Jun ORI Orica 31 May Jul YTMQF May Jun BENPF Jun Jun CSR CSR 01 Jun Jul IFT Infratil 01 Jun Jun NABPA Jun Jun SUNPE Jun Jun TNE Technology One 01 Jun Jun KMD Kathmandu Holdings 02 Jun Jun Courtesy of

6 WHATS HOT? WHATS NOT? OTW.asx - steaming hot PAC.asx - cooling down DATE CODE COMPANY ANNOUNCEMENT Shares of Over the Wire Holdings Limited have risen substantially since the company released a market update on Wednesday. The company lifted its net profit after tax projection for FY16 by 29%. It attributes the improved results to higher sales, lower costs and synergies attained from recent acquisitions. Shares of Pacific Current Group Limited have contracted 47% since the beginning of the year. The company recently announced that it sold its 20% interest in Octis Asset Management Pte. Ltd, stating that Octis funds under management halved since 2012, to $25.3 million.

7 ECONOMIC NEWS What to look out for: DATE CODE COMPANY US GDP data due at 10:30 pm (AEST) Investors await FED Chair Yellen s comments on the economy

8 NEWSWORTHY This caught our attention.. Algae DATE Tec CODE Signs COMPANY Supply Agreement with Gencor; ANNOUNCEMENT Share Price up More Than 30% Algae. Tec (ASX:AEB) announced that the company signed an exclusive supply agreement with Gencor, a prominent worldwide supplier of health supplements. The supply agreement provides Gencor with exclusive rights to buy all of the algae oil and powders produced at the Algae. Tec plant, located in Cummings, Georgia. The algae supply will be used for nutraceutical applications. This agreement follows detailed due diligence and testing by Gencor on the quality and properties of algae oil and powder that produced by the company. Gencor Pacific s Managing Director, Mr. R.V.Venkatesh commented on the agreement: This is an exciting partnership for Gencor. Algae. Tec plant is among the world s leading algae technology companies and we will be developing new products and markets with them. Click Here to Read the Full Story

9 LATEST UPDATE FROM WISE-OWL TechnologyOne Ltd (TNE) Growth CODE Portfolio COMPANY Update: TechnologyOne Ltd ANNOUNCEMENT (TNE) Wise-owl recommended to buy TechnologyOne Ltd (ASX:TNE) on 19 July 2013 at $1.95. In 2014 and 2015 we issued hold recommendations and subsequently moved our profit and stop levels higher. TNE was last traded at $5.46 and the stock is currently 180% in profit since our buy advice (not including dividends). This position is part of our Growth Portfolio. TechnologyOne has increased its dividend consistently at 10% per annum, while revenue growth remains strong. During H1FY16 revenue rose 12%, however NPAT declined 17% largely due to a 16% increase in expenses. TNE's sales pipeline is heavily weighted to the second half, thus management expects to achieve profit growth for the full year and lower expense growth to around 11% for the full year. ASX:TNE Hold 180% Profit 2.36c Dividend Declared Raise Stop to $4.15 View Full Report from July 2013

10 LATEST UPDATE FROM WISE-OWL Crusader Resources Ltd (CAS) Research CODE Note: COMPANY Crusader Resources Ltd ANNOUNCEMENT (CAS) - Initiating Coverage Crusader Resources Ltd ("Crusader", "the Company") is an Australian mining company focused on Brazil. It operates the Posse Iron Ore Mine (100%) in Minas Gerais state, cash flow from which is used to advance a portfolio of exploration to development stage gold and lithium assets. Crusader's gold assets include the Borborema Project (100%), located in Rio Grande do Norte state, and the Juruena Project (100%), located in Mato Grosso state. The Company's lithium asset is a Joint Venture (50%) incorporating the Manga Project, located in Goias state. ASX:CAS After securing a US$2million processing solution for Juruena, Crusader is rapidly advancing toward a decision to mine. Targeting a high grade, open pit / underground development, drilling is underway to convert existing resources to 'indicated' classification. Initiating Coverage Last Price: $0.125 Valuation: $0.20 Click Here to View Full Report

11 OUR VIEWS AT A GLANCE Find below a summary of Wise-owl s current market views CODE COMPANY ANNOUNCEMENT The ASX 200 has potential to outperform international markets in 2016/17 We continue to focus on small-mid cap stocks There are individual opportunities on the ASX 200 We favour the risk/reward ratio for gold miners We see value in European equities We see little upside for US stocks

12 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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