Trending On Livewire: Weekend Edition - Saturday 24th August

While the rest of the world is glued to the US, the ASX 200 clocked 10 consecutive winning sessions. But that streak did not come without its costs - Megaport (ASX: MP1) , Collins Foods (ASX: CKF), Yancoal( ASX: YAL), Dexus AREIT Fund, and a2 Milk (ASX: A2M) all recorded huge earnings day share price falls. But it was a better week for WiseTech and Westpac.

Meanwhile, Ansell's (ASX: ANN) dividend cut didn’t bother its shareholders - odd considering what happened to other stocks when they cut their dividend. Next week’s earnings will be headlined by The Big Australian, Wesfarmers (ASX: WES), and the supermarkets. So get some rest before then and wind down with the best of Livewire!

Hans Lee, Senior Editor, Livewire Markets

Reporting Season: 4 key themes so far

The 2024 reporting season has shown mixed results so far. While companies have exceeded earnings expectations, particularly in margins, there's a concerning trend of downgrades in forward earnings estimates for FY2025. This contrast between short-term resilience and long-term caution is shaping investor sentiment and market reactions, highlighting key themes emerging from the season

ACCESS THE INSIGHTS

c-suite interviews:

This week has been a massive one for the Livewire team. We sat down with the CEOs of WiseTech, Suncorp, Hub24 as well as the CFO of CSL to discuss each company's earnings report as well as their outlook. You can catch up on each of those interviews in the below section, as ranked by their market capitalisation.

Equities

CSL looks within to drive consistent, profitable growth

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Equities

HUB24 set to grow FUA by 46% over the next 2 years

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Equities

The unique growth company with a $600 million-plus war chest

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Equities

Suncorp could deliver the trifecta - Special dividends, buybacks and share consolidation in FY25

View

Buy Hold Sell: 5 stocks spewing out a hell of a lot of cash

In this episode, experts evaluate five ASX stocks with significant cash generation, featuring analysis of Helia Group (ASX: HLI), Nick Scali(ASX: NCK), and Whitehaven Coal (ASX: WHC). Fund managers share their views on whether to buy, hold, or sell, highlighting the importance of cash flow for future growth and stability

Ally Selby, Livewire Markets

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The Pitch: 3 qualities held by future stock leaders (and 3 companies that fit the bill)

Success in stock markets often hinges on recognising companies with qualities that promise future leadership. Viability, sustainability, and credibility are identified as the key traits that distinguish future leaders from the rest. By focusing on companies with these attributes, investors can better predict which stocks are likely to achieve sustained growth and market dominance.

Sara Allen, Livewire Markets

HOW TO IDENTIFY THESE TRAITS

Top 3 Wires this Week

Equities

The 13 best small and mid-cap management teams on the ASX

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Macro

Why discretionary stocks are a contrarian opportunity (and 7 ASX-listed ideas)

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Fixed Income

This investor is taking profits as markets reach a crucial "turning point"

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From our Experts

Some of the best wires from our Contributors this week.

Equities

Aussie equities: Great for income, only OK for growth.

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Equities

Why Yancoal suspended its dividend - and what investors could do now

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Investment Theme

The holy grail of high growth assets

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Carl’s Chart of the Week: Lithium free fall may have more to go

Lithium prices have taken a sharp turn lower in recent weeks, with several key markets hitting two and a half year lows.

Lyndon Maher 

The price of lithium carbonate in China, is down 33% since its April peak and 87% from its all-time peak in October 2022. Over roughly the same time, spodumene concentrate, is down nearly 36% and over 90% respectively.

Analysts from Morgan Stanley, Goldman Sachs, and Macquarie highlight two key issues:

1. Weak demand from the Chinese EV industry, exacerbated by potential protectionist measures in the EU and US
2. A lack of supply-side cuts, as producers focus on cost reductions instead.

Clearly the situation in the lithium market is dynamic and either of these factors could change quickly.

Carl Capolingua, Livewire Markets

SEE WHAT THE BROKERS THINK

Weekly Poll

Should companies that suspend their dividend be punished on the market?

• Yes
• No
• Unsure

VOTE NOW

Last Weeks Poll results

We asked "The following companies experienced earnings day share price slumps this week. Which one of these would you buy if you had the chance?"

Investors show strong confidence in CSL (NYSE: CSL) despite its recent earnings slump, with nearly 59% favouring it as a buying opportunity. Cochlear (ASX: COH)  emerges as a distant second at 18%, while healthcare skeptics represent 15% of respondents. Energy stocks see limited interest, with Origin (ASX: ORG) and Beach (ASX: BPT) attracting minimal votes. Notably, SeekASX: SEK) receives no support, suggesting caution in the employment sector. These results indicate a preference for established healthcare leaders in market downturns.

SEE RESULTS BREAKDOWN

The Meme Market

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