Learn To Invest
Stocks Special Reports LICs Credit Funds ETFs Tools SMSFs
Video Archive Article Archive
News Stocks Special Reports Funds ETFs Features SMSFs Learn
About

News

Morningstar runs the numbers

Lewis Jackson  |  09 Aug 2021Text size  Decrease  Increase  |  
Email to Friend

$176 million

After a disappointing IPO, retail investors piled into Robinhood, exchanging 176 million shares in an option-fuelled frenzy, writes Emma Rapaport in the Editor’s Note: “A wave of individual investors decided to get in on the action after the first public day of trading, sending the company's market value to a peak of US$65 billion - to the moon, in meme parlance. A whopping 176 million shares changed hands on Wednesday according to FactSet data, prompting a trading halt.”

44%

Chinese tech giant Tencent is trading at a massive 44% discount to fair value after Chinese regulators announced crackdowns on sectors from private tuition to gaming, I write: “Wide-moat tech giants Alibaba Group and Tencent Holdings are trading at a 36% and 44% discount to Morningstar’s fair value, respectively. The sell-off in Chinese stocks has also left narrow-moat China Construction Bank trading at a 32%discount to fair value. Billions have been wiped off Chinese markets in the last month as regulators crack down on sectors from technology to private education.”

100%

In a taste of the earnings season to come, Pinnacle announced a 100% increase in its dividends when it reported last week, writes Prashant Mehra: “Diversified investment firm Pinnacle (ASX: PNI) delivered strong numbers with full-year net profit more than doubling to $67 million. Net inflows rose to $16.7 billion, while assets under management jumped 52% to $89.4 billion. It announced a 100% increase in dividends to 17 cents per share. Earnings prospects are bright, with improved market conditions and flow activity resuming post the initial COVID-19 impact, Morningstar equity analyst Shaun Ler said.”

10%

The Reserve Bank of New Zealand has halved the amount of low deposit mortgage lending banks can do to 10%, as it tries to get rising house prices under control, writes Peter Warnes: “Across the ditch, the Reserve Bank of New Zealand has upped the ante on surging house prices. It restricted access to mortgages by halving the amount of low-deposit lending that banks can make to 10% from 1 October, with additional macro-prudential measures also being considered. It is another example of how New Zealand’s monetary, fiscal and taxation policies are ahead of Australia.”

Charts from last week - Tencent's days of pain

The cost of shipping goods from China has skyrocketed (here)

 Shipping costs from China have skyrocketed

Investing Compass
Listen to Morningstar Australia's Investing Compass podcast
Take a deep dive into investing concepts, with practical explanations to help you invest confidently.
Investing Compass

Source: Arbor Research

(Click to enlarge)

Most popular articles

Top videos

Prem Icon Morningstar's Global Best Ideas list is out now. Morningstar Premium subscribers can view the list here.

is a reporter and data journalist with Morningstar. Tweet him @lewjackk or get in touch via email

© 2021 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. This information is to be used for personal, non-commercial purposes only. No reproduction is permitted without the prior written consent of Morningstar. Any general advice or 'regulated financial advice' under New Zealand law has been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), or its Authorised Representatives, and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. For more information, refer to our Financial Services Guide (AU) and Financial Advice Provider Disclosure Statement (NZ). Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Morningstar’s full research reports are the source of any Morningstar Ratings and are available from Morningstar or your adviser. Past performance does not necessarily indicate a financial product's future performance. To obtain advice tailored to your situation, contact a licensed financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782. The article is current as at date of publication.

Email To Friend