Reporting Season Wrap – Part 1

A few of the companies we hold reported their annual results in the first week of August.  Here is a snapshot of my thoughts thus far:

Credit Corp Group Limited (ASX:CCP) produced an excellent result which beat the upper end of expectations.  And, importantly guidance for the future has improved which has provided intrinsic value increases in the vicinity of 8% per annum higher than my previous calculations for the next couple of years.  And, I noted a director bought on market this week after the results were announced which is good form.

The weekly chart shows a consolidation for more than 12 months.  Could we be seeing the start of the next leg up?

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Cochlear Limited (ASX:COH) also produced a result better than expected.  The outlook has improved and the market liked it immediately.  Interestingly, even with relatively poor results from a historical perspective, profitability of Cochlear is still ahead of the vast majority of other listed businesses.  Weekly chart attached…

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REA Group Limted (ASX:REA) result was spot on guidance.  Being fully priced in, the market reacted accordingly by selling the news.  Surprisingly, the future looks brighter than I previously anticipated courtesy of large cash resources and more international expansion on the cards.

REA is an amazing business and certainly in the top handful across the country.  With Friday’s sell off shown on the daily chart after the results were announced, the smarties know what to do…..

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This article is published by Dean Mico.

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