These three companies all updated the market today and I think investors should add all three to their watch list.
Impressive miner
Kaz Minerals (LSE: KAZ) updated the market on its production figures from the first half of the year. Copper cathode equivalent production was up 43% and the company remains on track to meet full-year 2016 production guidance of 130-155 kt. Gold production rose significantly from 16.1koz to 39.1koz year-on-year. Although gold is only a small part of the company, it’s encouraging to see Kaz taking advantage of higher gold prices.
Today the CEO of Kaz said that we “are now delivering the highest growth rate in the sector and we look forward to updating the market on our financial performance when we announce our half-year results in August.” The market has been impressed with the results this morning and shares are up over 4.5%. If Kaz really does have the highest growth rate in the sector then those shares could go a lot higher.
Next chapter for Melrose
Investment company Melrose Industries (LSE: MRO) released its half-yearly report today. The results had no surprises and although a small loss was made it’s nothing to worry about. I’d like to draw your attention to the new investment Melrose has made recently. The company is beginning a new chapter by purchasing Nortek for just over £2bn. This acquisition was made on the back of an incredibly successful investment in Elster that returned over £2.5bn to shareholders following its sale in December 2015.
The new purchase follows the companies strategy of “buy, improve, sell”. Melrose is hoping that the transaction will be completed in late August or early September. The shares could go much higher if the company’s new investment produces similar returns to its last.
Pharma earnings hit
AstraZeneca (LSE: AZN) released a set of lacklustre results this morning but somewhat surprisingly, the shares are up over 2% today. Core earnings per share fell over 31% in Q2, which is slightly worrying, but the company is sticking with guidance of a low-to-mid single-digit decline in earnings and revenue in 2016.
Analysts see Astra making another loss in 2017 before moving back to growth in 2018 as new products hit the market. The company has also been subject to further bid speculation, not from Pfizer, which made a bid for the company two years ago, but from the Swiss pharmaceuticals group Novartis. Astra’s CEO was asked to comment on whether Astra itself was looking at any acquisitions but he said “we have a really full pipeline, so we would be extremely unlikely to consider a pipeline acquisition”. Shares are up nearly 2% on the back of today’s news, despite earnings being hit. This may be due to those bid rumours but Astra remains one to watch closely over the next few months for further bid speculation.
