End Of Financial Year Report Card – How Did My Stocks Go?
This will be a short post highlighting the wins and (unfortunately) the losers of the financial year of 2017. Here in Australia, our financial year runs from July 1st to June 30th. So where other countries report their half yearly profits, companies here in Australia post their stock performance over the past year. I have tabulated some of the results and have gathered them together to give you an insight into how my stocks fared for the year.
FY2017 Financial Report Card
Financial Report Card Explanation
AIZ – Bought 1.67 sold at 3.29
AIZ are a great company if you are looking for a high yield. They don’t fit my criteria for a sound investment. They are heavily reliant on the oil price and also do not pay a franking credit (tax) to dividends which means you have to pay tax on top. Overall, they posted some great results which pushed their stock price up and I was able to sell at a great price. Bought at $1.67 and sold at $3.29.
Reporting Season Rating: A
ARF – ARF own building space and lease this out to companies and childcare operators. EPS up 11%, DPS up 10%, Nav up 19% and Total Assets up 21%.
Future dividend guidance has increased by 6.7% in FY2018. Overall fantastic performance without many downsides. Only downside would be recent capital raising which may dilute valuation of existing shares. Consensus: Buy under $2.10. Reporting Season Rating: A+
RBO – Robo 3D are a 3D Printing Manufacturer. Average financial report, not turning a profit just yet. This was a speculative buy here. Massive potential for future growth in the personal/professional 3D printing industry. Robo are making some massive partners, Amazon just to name one. They are selling a massive amount of printers on Amazon alone, looking to hold this stock for a while till they turn a profit. Consensus: Hold/Buy under $0.065. Reporting Season Rating: B-
RFF – RFF are an agricultural REIT owning land and leasing to top quality tenants. Overall positive report, this is my largest holding in my portfolio and will likely stay that way if they continue to produce results like this. Adjusted Funds From Operation (AFFO) up 34.4%. Gearing has been reduced via a capital raising (minor dilution). Dividends were increased by 4% and projected to be increased by 4% in the following FY2018. Capital raising was for a new property purchase in the not too distant future which shall increase valuation of company. Consensus: Buy under $2.00. Reporting Season Rating: A
VOC – Vocus are a telecommunication company. Ugh…. where to start. Vocus have been a thorn in my side for a while now. I am giving them the benefit of the doubt when it comes to their reporting and performance as they are the lowest weighting in my portfolio. They posted some nice results this year but then also a massive write off which I guess hurts their share price. They are a funny performer, recently knocking back a take over offer of $3.50. I think their fair value is closer to $5.00. Consensus: Hold to $5.00, Buy under $2.50. Reporting Season Rating: B-
VTG – Vita Group run a lot of successful Telstra (telecommunication) stores. Their share price took a hit as Telstra (their main business) said they would be cutting remuneration over the coming years. Revenue was up 5%, Underlying EBITDA was up 5% and the total dividend was up a massive 19%. Overall satisfying results that they definitely cannot continue to produce if their incentives are being cut back. Future dividend likely to be cut by a small margain as Telstra cut Vita’s margin. Consensus: Hold to $3.00, Buy under $1.20. Reporting Season Rating: B
WAX – WAM Research is a LIC that invests in companies it can see their share price increasing while holding a fantastic performance over the years. This year they managed to post an 18.8% increase for shareholders while still providing an average yield of 6% (included in shareholder return). They boasted a lovely 9c dividend for the year.
Consensus: Hold forever. Reporting Season Rating: A+
WLE – WAM Leaders is another LIC that invests in the largest companies listed on the ASX, companies like Woolworths, BHP Billiton and the Big 4 Banks. They buy when they see an entry point and sell when they are overpriced. I added this as this is a safer option.
WLE was able to produce a 11.5% portfolio performance which includes a 3c dividend for the year (expected to grow over the years).
Consensus: Hold forever. Reporting Season Rating: A-
Overall, I was pretty pleased with my stock performance over the year. I do follow my stocks closely so none of these results shocked me. I am happy overall, just a few I will have to keep an eye on to make sure they are still performing well enough to continue to hold. How did your report season go?