In today’s briefing:
- Boral’s 45% Capital Return – Resetting Forward Expectations
- Allied Telesis (6835) – Small Cap Windfall
- ASX200 Index Rebalance: Arena REIT to Replace Ausnet
- S&P/ASX200 – Ausnet OUT, Arena REIT IN
- NIFTY100/NIFTY NEXT50 Index Rebalance Preview: Five Potential Changes in March
Boral’s 45% Capital Return – Resetting Forward Expectations
- Boral Ltd (BLD AU) today announced a special dividend and return of capital totalling $2.72/share. That is 46% of yesterday’s closing price.
- This was not unexpected. Management had promised, media articles had proposed as much. Now it is coming through.
- Despite an 11% jump in the forward ex-div price today, the stock is cheap on a FY23 basis.
Allied Telesis (6835) – Small Cap Windfall
- Allied Telesis is a Japan-listed business with a long US history making networking equipment and solutions for corporate customers.
- The company received a legal settlement today which is worth a fair bit to them.
- The company had already had the best 12 months earnings history in years, while the stock is trading at long-time lows. This could get exciting.
ASX200 Index Rebalance: Arena REIT to Replace Ausnet
- Ausnet Services (AST AU) will be deleted from the S&P/ASX 200 (AS51 INDEX) after the close of trading on 4 February and Arena Reit (ARF AU) will be included.
- With this change announced, Telix Pharmaceuticals (TLX AU) is a high probability inclusion to the S&P/ASX 200 (AS51 INDEX) next week when Sydney Airport (SYD AU) will be deleted.
- Arena Reit (ARF AU) has outperformed its peers over the last year and now trades at higher valuations. We would use price spikes on inclusion to rotate into its peers.
S&P/ASX200 – Ausnet OUT, Arena REIT IN
- The S&P DJI Index team announced the replacement for Ausnet Services (AST AU) when it is deleted from the S&P/ASX200 Friday at the close: Arena Reit (ARF AU)
- There are other changes to sub-indices which are not publicly announced but which should align with previous analysis
- This insight provides estimates for the index events Friday and ways to play them.
NIFTY100/NIFTY NEXT50 Index Rebalance Preview: Five Potential Changes in March
- The review period for the NIFTY 100 Index ended on 31 Jan. The rebalance will be effective after the close on 30 March and the announcement will come end February.
- Potential inclusions are Zomato (ZOMATO IN), Mindtree Ltd (MTCL IN), SRF Ltd (SRF IN), Indian Railway Catering and Tourism (IRCTC IN) and Tata Power (TPWR IN).
- Potential deletions are Yes Bank (YES IN), Indraprastha Gas (IGL IN), Jindal Steel & Power (JSP IN), Aurobindo Pharma (ARBP IN) and Hindustan Petroleum (HPCL IN).
Before it’s here, it’s on Smartkarma
