Australian Stocks
 
Westpac Banking Corporation          WBC.AX       
-         Growth rate in earnings expected to be 9-10% per annum        
-         The risk associated with the loan portfolio is at the lowest end of the scale for Australian banks.
-         PE ratio is 11.8 and dividend yield for 2006 is 5.8% it is also noted that WBC’s payout ratio is  63%, which allows further dividend increases.
-         The Australian property market appears to have had a “soft landing “and looks to be on the improve.
-         WBC has placed a strong emphasis on increasing customer satisfaction; this policy is assisting with maintaining margins.
 
BHP Billiton Ltd                    BHP.AX
-         A core portfolio stock giving investors exposure to a range of commodities such as Petroleum, iron ore and coking coal, energy coal Diamonds copper and aluminium.
-         BHP has completed a US $1.8 billion off market share buy back and there is further potential for more capital management initiatives.
-         BHP is the largest coking coal producer and the third largest iron ore producer and is expected to be the largest beneficiary of recent price increases in these commodities. Coking coal has doubled to US$125 over the past 4 years.
-         2006 pe ratio is 11.5 and div yield is 2%
 
 
QBE Insurance Group           QBE.AX
-         QBE will release its 2004 results on February 24th 2005 with expectations of a $700 million profit despite several tragic events such as the tsunami and three cyclones in the US.
-         QBE is one of the best-managed insurance groups in the global general insurance and reinsurance industry with an excellent track record of earnings.
-         Global premium rates continue to hold up which coupled with changes in policy terms has resulted in improved margins.
-         QBE has a strong level of provisioning
-         Fundamentals are undemanding with a 2006 pe ratio at 12.4 times and a div yield of 4.2%
 
Wesfarmers Limited              WES.AX
-         Management is proven over a long period for creation of shareholder wealth with EPS and DPS track record justifying a premium over the market.
-        Strong cash flows and a low debt level have allowed WES to make capital returns to shareholders with the return of $1.00 per share due in March this year.
-        WES via its Curragh holding is a serious player in the export coking coal market with significant benefits coming on stream from 2006 onwards.
-        looking for a profit upgrade.  
-        PE ratio for 2006 is forecast at 19.8 with a yield of 4.7%
 
 
Brambles Industries Ltd        BIL.AX
-        Chep’s recovery remains intact with revenue growing at 6% in Europe and 9% in the US markets.
-        BIL management have indicated that Cleanaway will trade at break even, but no immediate improvement is forecast.
-        Recall is forecast to show improved results as a result of restructuring and cost controls, we see this division improving 5%
-        Industrial Services will report a strong growth figure on the back of strong growth in the steel industry
-        2006 pe ratio is 18.5 and div yield is 2.8%
 
Amcor Limited           AMC.AX
-         The shock announcement of AMC’s MD Russell Jones coupled with possible investigations over possible cartel behaviour in its corrugated box business has had a negative impact ob the AMC share price from $8.50 to $7.00 this could be a buy opportunity.
-         AMC is expected to maintain its market share of approximately 40% with the other major players being Carter Holt and Visy Board.
-         The Australasian operations have been the major source of income and have driven the global acquisitions.
-         Over the next two years we expect the company to focus on operational issues. We believe the stock can work its way back to previous levels over the next 18 mths.
-         2006 pe ratio is 14.7 and yield is 4.7
 
Alinta              ALN.AX
-        Alinta is becoming a major player in the gas distribution sector with interests in pipelines, generators and pipelines across Australia.
-        The West Australian market is continuing to expand and Alinta is well placed to capitalise on future demand with the construction of its second plant in WA.
-        The market is expecting Alinta to create a trust structure in the future, which will help to lower the company’s debt as well as creating another earnings stream.
-       2006 forecast pe ratio is 17.8 and yield is 7%
 
Toll Holdings              TOL.AX
-         Toll is currently trading on a 2006 forecast pe of 13.9 and 12.2 for 2007, with the 2007 pe 85% relative to the all ords index.
-         Toll management has taken under performing assets, which have been restructured to create enhanced profits in the group structure.
-         Investors will be watching for the results of the Tranz Rail restructuring in NZ.
-         Other gains are expected to come from industry consolidation and slight increases in operating margins.
-         Toll is linked into the Australian economy, which is continuing to show growth on the back of a strong minerals sector, this also carries with it an element of risk.
 
Burns Philp & Co                   BPC.AX
-         The positive of the latest result has been the strong growth for the Goodman Fielder business, which has been due to BPC managements cost saving disciplines.
-         Investors will await the next corporate news from the “house of Hart “to gauge further growth prospects.
-         The man is gaining credibility with Australian institutions with each result.
 
Australian Stock Exchange               ASX, AX
-         The Australian Stock Exchange has a strong monopoly position with minimal competitive threats and the possibility of growth through the introduction of new products and reduced costs.
-         While the revenue drivers are somewhat cyclical i.e. Bull / Bear markets the ASX has the ability to increase prices and reduce costs which will result in non-cyclical earnings over the short to medium term.
-         Having said that any negative news for the Markets such as a 9/11 will obviously have a negative impact.
 
Woodside Petroleum              WPL.AX
-       Current fundamentals for the company are high but the company’s new
developments will drive profit from 2007 onwards.
-       Woodside can also benefit from further growth in natural gas production due to higher than forecast supply / demand fundamentals.
-       Development projects Enfield, Chinguetti, Otway, and Enfield are on schedule for start-up in 2006.
-       Investors are exposed to oil price and US$/A$ exchange rates both of which have proven to be hard to forecast.
-       pe ratio for 2006 is 15.1 and for 2007 is 13.6.