To The Moon

As of the close on Friday, $S&P/ASX 200(XJO.AU)$ closed at 8,013.40 on Friday, down 0.97% in the past 5 days.

1. $NANOSONICS LTD(NAN.AU)$ +10.22%

• Nanosonics Limited has announced that State Street Bank and Trust Company, among other entities, has become a substantial holder as of September 2, 2024, with a total voting power due to relevant interests in over 15 million ordinary shares.

• This strategic financial move involves entities with the authority to control voting rights and dispose of securities as investment managers or trustees, reflecting potential shifts in the company’s investment landscape, which may drives the stock price up!

• Nanosonics has perfectly satisfactory free cash flow relative to profit. Because of this, most analysts think Nanosonics' earnings potential is at least as good as it seems, and maybe even better! And the EPS is up 50% annually, over the last three years.

2. $SMARTGROUP CORP LTD(SIQ.AU)$ +8.51%

• Smartgroup Corporation Ltd has released an update, which is the main reason why stocks are rising.

• State Street Global Advisors has ceased to be a substantial holder in Smartgroup Corporation Ltd as of September 3, 2024. This change follows their previous notification to the company on August 28, 2024, and is detailed in their latest filing. The change in holding is a result of adjustments in voting interests and the associated entities are listed within the document.

• If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. It's positive to see that Smartgroup's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.

3. $CHARTER HALL GROUP(CHC.AU)$ +7.66%

• Commonwealth Bank of Australia (CBA) and its affiliates have emerged as a substantial holder in Charter Hall Group, with a combined voting power of 5.00% across 23,671,749 fully paid stapled securities.

• The acquisition of this significant stake, which underpins CBA’s relevant interest in Charter Hall’s shares, reflects strategic financial maneuvers within the property investment landscape. which is the main reason why stocks are rising.

• Charter Hall Group offers a moderate dividend yield of 3.44%, which is below the top quartile of Australian dividend stocks. Despite lower profit margins this year at 11.7% compared to last year's 42.9%, its dividends are well-supported, with a payout ratio of 43.8% and a cash payout ratio of 45.3%. The company has maintained stable and reliable dividends over the past decade, with an anticipated earnings growth rate of 18.28% per year, suggesting potential for future dividend sustainability and growth.

4. $Kelsian Group Ltd(KLS.AU)$ +6.12%

• Kelsian Group Limited has applied for the quotation of new securities on the ASX, with a total of 7,273 ordinary fully paid shares to be quoted under the code KLS as of September 2, 2024. This move could signify an expansion or fund-raising effort by the company, potentially sparking interest among investors.

• Kelsian Group Revenues and Earnings Beat Expectations. Revenue exceeded analyst estimates by 1.5%. Earnings per share (EPS) also surpassed analyst estimates by 4.1%.

• The primary driver behind last 12 months revenue was the Australian Bus segment contributing a total revenue of AU$1.04b (51% of total revenue). Notably, cost of sales worth AU$1.52b amounted to 75% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to AU$246.1m (54% of total expenses).

5. $MIRVAC GROUP(MGR.AU)$ +5.88%

• Mirvac Group Director James Richard Cain has made a significant investment in the company by purchasing 50,000 Stapled Securities on-market at an average price of $2.01 each. This transaction, which took place on August 28, 2024, marks a notable change in Cain’s interest in the company as he had no prior holdings. This move could signal confidence in Mirvac Group’s future prospects.

• It is worth noting that Mirvac Group shareholders are down 8.6% for the year (even including dividends), but the market itself is up 9.3%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 2% per year over five years.