Macarthur Coal
Perilya (PEM) was the overall best performing stock taking in a 20.96 percent increase. It was a mixture of toll road development, infrastructure services, steel manufacturing, and mining companies who were among the best performing stocks for the week 28 of 2008 of the Australian sharemarket: Transurban Group (TCL), Babcock & Brown Infrastructure (BBI), BlueScope Steel (BSL), Perilya (PEM), Macarthur Coal (MCC). These best performing stocks managed gains above 10.04 percent by the end of the trading week.
Arcelor Mittal, headed by steel billionaire Laxmi Mittal, is the world’s largest steel maker by volume, acquired 14.9 percent in Macarthur Coal (MCC) which shook up the possible takeover bid of the coal miner. Ken Talbot decided to split his majority shareholding and allowed Mittal’s company, Arcelor Mittal, to acquire stake in his company. He agreed to sell his 9.1 million shares that accounts to nearly 20 percent of his stake in the company to ArcelorMittal at $19.96 per share. The price offered by Arcelor Mittal was an 8.5% premium to Mararthur Coal’s last trade.
Allco Finance (AFG) was the overall best performing stock taking in a 80.61 percent increase. Among the best performing stocks for the week 17 of 2008 on the Australian sharemarket were a mixture of financial services, property management, coal mining: Allco Finance (AFG), Valad Property (VPG), Westpac Banking (WBC), Macarthur Coal (MCC), Felix Resources (FLX). The best performing stocks for the week 17 recorded gains above 10.52 percent by the end of the trading week.
Macarthur Coal (MCC) was the overall best performing stock taking in a 19.54 percent increase. Among the best performing companies for the past week (week 41 of 2007) on the Australian sharemarket were a mixture of chemical manufacturing, communication services, aviation, coal mining, metal and transportation: Incitec Pivot (IPL), Telstra Corporation (TLS), Qantas (QAN), Macarthur Coal (MCC), Mt. Gibson Iron (MGX), Cabcharge Australia (CAB). These best performing stocks for week 41 managed more than 5.48 percent gain by the end of the trading week.
Karoon Gas, Incitec Pivot and Macarthur Coal were the best performing stocks in their respective categories on the Australian sharemarket for week 41. Karoon Gas (KAR) was the overall winner of the week, shooting up 64 percent on the back of a broker's recommendation which said the company was worth between $20 to $40: the energy company closed the week at $3.70. The winner of the week for the ASX 100 index was Incitec Pivot (IPL) which managed to increase its value by 8.114 percent or $6.71 and closing the trading week at $89.41. On the other hand, ASX 200 winner Macarthur Coal (MCC) managed to put on 19.55 percent of value for its shareholders, or $1.21 closing at $7.40. Other notable gainers of the week were: Mt Gibson Iron ($2.45, increase of 11.36%); Cabcharge Australia ($11.05, increase of 11.17%), Aquarius Platinum ($41.32, increase of 9.6%) and Centro Retail ($1.71, increase of 8.9%). The Australian dollar at Friday close of business was US89.73 cents, gold was $747, All Ordinaries closed the week at 6760.1 and the ASX200 closed at 6748.9. Incitec Pivot was a previous winner of the week. Karoon Gas was also a previous winner. Read a previous recommendation for Macarthur Coal.
Macarthur Coal (MCC) has a maintained Outperform recommendation from Australian sharemarket analyst Macquarie Research Equities. Despite a volatile ride over the past month, MCC shares have gained more than 55% since March on the back of an improving coal sector. Yesterday, the company announced that CITIC Resources had increased its shareholding from 11.62% to 19.99%, paying $7.20 per share, a 6% premium to yesterday’s closing price. The analysts maintain their Outperform recommendation on MCC based on the company sustaining operational performance at Coppabella/Moorvale as well as further greenfield project development in the Bowen Basin. Talbot remains largest shareholder. CITIC Resources has acquired 15,683,735 shares in Macarthur Coal at $7.20ps for a total of ~$112.9m from Ken Talbot. This represents a 6.35% premium to Friday's closing price. Following the sale, the Talbot Group will remain the largest shareholder with a 27.2% stake (previously 35.57%). Talbot a seller. The deal confirms that Ken Talbot is a seller. While this question has raised much speculation over the last few months, it follows from the recent announcement that Ken Talbot has relinquished all executive duties on the Macarthur Coal board. Ken Talbot remains a non-executive director. Traders vying for marketing rights. The deal also strengthens the theme the analysts are currently witnessing in the Australian coal industry whereby coal trading houses are establishing large stakes in coal companies in order to avoid being 'squeezed out' from the market by 'the majors' as a consequence of the consolidation trend. Such examples over the last week include the Noble Group taking a 10% stake in Gloucestor Coal and Sojitz Corporation purchasing a 10% stake in the Moolarben project. Furthering the relationship. While already a substantial shareholder in the company, CITIC Resources also holds a 7% direct JV interest in the Coppabella Moorvale JV as well as JV interests in various coal exploration and development projects operated by Macarthur Coal. Further, it is a coal
trading house and is the 54%-owned subsidiary of CITIC Group. CITIC Group is one of China's largest state-owned companies, with assets in excess of US$100bn. They believe it is unlikely that CITIC will launch a full takeover for Macarthur Coal. That said, the analysts believe any potential suitor will now need to win two major shareholders over the line, rather than one – a more challenging feat.
As another strong year for global resource stocks draws to a close, Macquarie Research Equities (MRE) analysts provide an overview of the resource sector for the year, and offer some insights into the outlook for 2007, as well as their recommendations and preferences for the year ahead.
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Top 50 Public Companies Listed on the Australian Stockmarket as at 18/07/2008
- BHP Billiton
- Commonwealth Bank of Australia (CBA)
- Rio Tinto
- National Australia Bank (NAB)
- Telstra (TLS)
- News Corporation or NewsCorp (NWS)
- Westpac Banking Corporation (WBC)
- Woodside Petroleum Limited (WPL)
- ANZ
- Woolworths Limited (WOW)
- Westfield Group (WDC)
- Westfarmers Limited (WES)
- Fortescue Metals (FMG)
- CSL
- QBE Insurance
- St. George Bank Limited (SGB
- Newcrest Mining Limited (NCM
- Origin Energy Limited (ORG)
- Maquarie Group (MQG)
- AMP Limited (AMP)
- Leighton Holdings (LEI)
- Suncorp-Metway Limited (SUN)
- Brambles Limited (BXB)
- Santos Limited (STO)
- Coal & Allied (CNA)
- Incitec Pivot (IPL)
- Foster’s Group Limited (FGL)
- Orica Limited (ORI)
- BlueScope (BSL)
- AXA Asia Pacific Holdings Limited (AXA)
- Woodside Petroleum Limited (WPL)
- Insurance Australia Group Limited (IAG)
- Stockland (SGP)
- Lihir Gold Limited (LGL)
- Qantas Airways Limited (QAN)
- Oxiana Limited (OXR)
- Sims Group Limited (SGM)
- AGL Energy Limited (AGK)
- OneSteel Limited (OST)
- Transurban Group (TCL)
- Oil Search Limited (OSH)
- Coca-Cola Amatil Limited (CCL)
- Crown (CWN)
- Alumina (AWC)
- ASX (Australian Securities Exchange)
- Macquarie Infrastructure Group (MIG)
- Telecom Corporation of New Zealand (TEL)
- Computershare Limited (CPU)
- Aneka Tambang (Persero) TBK (ATM)
- Tabcorp Holdings (TAH)
