Further, the second reason for investing in the stock market is to generate dividends from each share of stock invested. Dividends are the products of accumulated net income from the business operations of Caltex Australia, Metcash, and the like. The technical analysis below will help determine which stocks of the alternatives will give the most benefit. Following this second reason, five stocks from the Australian stock exchange under the consumer staples section are shown below. In addition, five stocks under the Australian stock market energy sector are also technically analyzed below.
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The Consumer Staples sector and the Energy sector are the two best investment alternatives. These sectors fit with Mr. Crawfords character as an aggressive investor. Appendix A shows the Energy sector has the second-highest movement at 278.4 The Consumer Staples sector was also chosen because it has the second to the last position in terms of movement. Both a very aggressive Energy sector and a not so aggressive sector were chosen in order to synergize the investment(Oxley 2000, 24).
To explain further, the figures of the five companies listed under the CONSUMER STAPLES section of the Aust
ralian Stock Exchange show that Woolworths Ltd (WOW) generated the highest two-year earnings growth rate of twenty-eight percent. Lion Nathan Ltd (LNN) generated the second-highest two-year earnings growth rate of twenty-four percent. Coca-Cola Amatil (CCL) generated the third-highest two-year earning growth rate of eighteen percent. The fourth placer under this category is Metcash Ltd (MTS) with a negative or declining growth rate of eight percent. The lowest ranking of the five company analyses is Wesfarmers Ltd (WES) with a negative or declining growth rate of twenty-five percent(Barnard 963, 370).
In terms of the two-year revenue growth rate, Coca-Cola Amatil (CCL) garnered the highest with a twenty percent increase. This is followed by Woolworths Ltd (WOW) with an increase of thirteen percent. Wesfarmers Ltd (WES) got the third-highest revenue growth rate at ten percent. The fourth placer of the group is Lion Nathan Ltd (LNN) with a growth rate of only six percent. The bottom company of the Metcash (MTS) with a growth rate of only two percent. These figures were based on the five companies 2007 financial statements and 2006 balance sheet and income statements(Mckenzie 200).