CSL - CSL Limited

[Knobby22]

I think the float price was more like $2.40. But as it has been split into 3 this works out at a present price of 80c approx. Having an honest and smart CEO like McNamee was a good factor also. I'd love to find another one but as you say where?

 

[McLovin]

I think the float price was more like $2.40. But as it has been split into 3 this works out at a present price of 80c approx. Having an honest and smart CEO like McNamee was a good factor also. I'd love to find another one but as you say where?

Yeah, 80c seems about right, I knew about the splits which is why 77c seemed a bit strange. Ahh well what's 3c on a $50 stock!

Agree on McNamee, he was actually a pretty directionless 34 year old when he was made CEO but he's arguably Australia's greatest CEO.

 

[McLovin]

Slightly off topic, but a good reason to take a swipe at the myopia that affects both sides of politics. CSL came out of a well funded government department. COH came out of a university. They are two of Australia's most successful global companies. And year after year the government takes money away. It's an interesting observation that much of America's dominance in technology was actually borne out of the huge funding increases for research during the Space Race. Bah, let's just dig another hole.

 

[Knobby22]

True. I was upset when the Libs cut funding but Labor are proving even worse.
CFU was an Australian invention but when they presented it to the Parlimentary party they couldn't understand the potential or even really understand how it worked. The minutes of the meeting would make you cry. We need men like Monash in parliment. Too many lawyers.

 

[McLovin]

True. I was upset when the Libs cut funding but Labor are proving even worse.
CFU was an Australian invention but when they presented it to the Parlimentary party they couldn't understand the potential or even really understand how it worked. The minutes of the meeting would make you cry. We need men like Monash in parliment. Too many lawyers.

Do you have the minutes to the meeting by any chance?

Those government organisations need a team of commercialisation specialists, ditto the universities. Researchers and politicians aren't going to take your product to market.

 

[Knobby22]

Used top be on the CFU website but that was 4 years ago.

 

[kid hustlr]

Still she runs

 

[McCoy Pauley]

Do you have the minutes to the meeting by any chance?

Those government organisations need a team of commercialisation specialists, ditto the universities. Researchers and politicians aren't going to take your product to market.

Universities and the CSIRO do have teams of people trying to commercialize their inventions, but that takes resources which they do not have in the present environment.

 

[Judd]

Usual stuff so far from CSL. Profit up by 24%, R&D $US190m up 14%, Dividend $US50c ($AU48.66c unfranked) up 33%.

 

[notting]

Usual stuff so far from CSL. Profit up by 24%, R&D $US190m up 14%, Dividend $US50c ($AU48.66c unfranked) up 33%.

Looks like people took the dividend on the fake out!
Wish I had been watching, would have gone short at 2% rise on that dinosaur news.
When do they stop that aggressive buying of their own shares anyway?
Looking for another opportunity.

 

[McCoy Pauley]

Looks like people took the dividend on the fake out!
Wish I had been watching, would have gone short at 2% rise on that dinosaur news.
When do they stop that aggressive buying of their own shares anyway?
Looking for another opportunity.

Not any time soon, it appears. Another $950 million buyback announced at the AGM this morning.

http://www.skynews.com.au/businessnews/article.aspx?id=915530&vId=

 

[Gringotts Bank]

Anyone for a cup of CSL?

 

[pixel]

Anyone for a cup of CSL?

Wowee! It's even got a handle

 

[Valued]

This stock hit a new high today. The call options looked like a steal too. 80:1 leverage is always cool. It will be good to watch this one to see what happens.

 

[piggybank]

i sold some at $40 seeing as they hadn't been that high for years, the some more at $45.55. If they reach $50 I am selling the lot, but I already regret selling at $40 :-( Will I regret selling at $50?

Hi Not Rene,

Did you regret selling "what you had left" at $50?

Cheers
PB

 

[McCoy Pauley]

Full year results out this morning.

7% rise in NPAT compared to the previous financial year, which translates to a 10% rise in EPS after the effect of the buyback, which also helped the return on equity to lift from 40.5% to 41.3%. The dividend lifts from US$0.52/share this time last year to US$0.60/share this year, unfranked.

But I noticed with interest that the debt to equity ratio lifted from 55% to almost 60% in the last 12 months. There's no disclosure in the full year results for the purposes of the debt raised during the financial year.

I'm somewhat nonplussed by the results announced to the market this morning. Although gross revenue lifted 8.6% in constant currency terms, it seems like the results have been massaged through financial engineering through the buyback and the use of debt.

 

[Knobby22]

Growth does appear to be slowing.
I need to look at the results more closely.

 

[Knobby22]

It appears that the rise is due to the flat performance of CSL's peers that the analysts expected a similar occurance but the results show that CSL has held margins and probably stolen market share.

The CEO's positive comments about China also helped. The dividend improved more than I thought would occur and there is yet another buyback.

I can't see the CSL price falling substantially over the next six months.

 

[McCoy Pauley]

Indeed.

From UBS via FN Arena:

UBS rates CSL as Buy (1) - CSL's result exceeded consensus and guidance, which the broker's suggests is quite an achievement for a first-year CEO. Highlights included 17% second half gains for IVIG with no price rises and the pre-sale of all of CSL's FY15 flu vaccine production. The broker suggests volume-driven gains represent market share gains and that momentum will continue into FY15.

The broker has not increased forecasts, other than to account for a new buyback, but has increased its PE assumption in raising its target to $85 from $80. Buy retained.

Target price is $85.00 Current Price is $67.24 Difference: $17.76 If CSL meets the UBS target it will return approximately 26% (excluding dividends, fees and charges).

The company's fiscal year ends in June. UBS forecasts a full year FY15 dividend of 140.02 cents and EPS of 340.82 cents . At the last closing share price the estimated dividend yield is 2.08%.

I looked closely at adding to my position when CSL's share price went as low as $64/share but then was distracted by work-a-day pressures and missed the boat. It's shot up to almost $69/share this morning.

 

[Superb Parrot]

Indeed.

From UBS via FN Arena:



I looked closely at adding to my position when CSL's share price went as low as $64/share but then was distracted by work-a-day pressures and missed the boat. It's shot up to almost $69/share this morning.

It will, with its US earnings, also benefit from the predicted drop in the Aussie dollar as US interest rates pick up, suggested to be sometime in 2015.