Five Software, Information Technology and Online stocks

Altium Ltd

ALU Dividend Details
 
New products and partnerships: Altium Ltd (ASX: ALU) recently announced that it has signed an OEM agreement with Dassault Systèmes to introduce a new SOLIDWORKS Electronic Computer-Aided Design (ECAD) product based on Altium’s Printed Circuit Board (PCB) software technology. Dassault Systèmes is the world’s largest, most respected and most innovative engineering software company.
 


Improving performance over the years (Source: Company reports)
 
Accordingly, the shares of ALU surged over 25.06% in the last four weeks alone (as of February 15, 2016). ALU also made a partnership with VOX, industry-leading musical equipment manufacturer, resulting in reduction in the company's development time by 50% with the use of flagship PCB design tool from Altium. ALU is trading at a very cheaper P/E and has a decent dividend yield. We recommend a “HOLD” on the stock at the current share price of  $5.75
 
 
ALU Daily Chart (Source: Thomson Reuters)
 

Data#3 Ltd

DTL Dividend Details
 
Positive financial performance: Data#3 Ltd (ASX: DTL) provided an update on its profit outlook and forecasts a net profit before tax in the range of $5.5 to $6.5 million for first half of 2016 indicating an increase from $5.2 million recorded in the same period a year ago. DTL has been reporting a positive financial performance over the years, wherein its revenues surged to $870.5 million in fiscal year of 2015 against $599.2 million in fiscal year of 2010. The group’s stock surged over 43.84% in the last 52 weeks (as at February 15, 2016) and still trading at attractive valuations with a reasonable P/E and a strong dividend yield. We believe that the stock has the potential to rise further in the coming months and accordingly place a “HOLD” at the current share price of  $1.055
 
 
DTL Daily Chart (Source: Thomson Reuters)
 

Xero Ltd

XRO Details
 
Quarterly cash flow report: Xero Ltd (ASX: XRO) reported a cash and short term deposit balances of NZ$224.5 million as of 30 September 2015 resulting in a cash movement of $(19.1) million for the second quarter financial year 2016. Cash usage from operating and investing activities at $(21.0) million in the current quarter declined from the usage in the prior four quarters.
 


Cash flow movements (Source: Company reports)
 
Operating cash flow improvements have been driven by strong revenue increases and operating efficiencies which have allowed investments in distribution channels and product development to drive sustained global customer and revenue growth. The company is on track for full year subscription revenue of NZD$ 200 million (June 2015 FX rates). Given the growth potential and improved cash flow quarterly results, we reiterate our “BUY” recommendation on XRO at current share price of  $13.29
 
 
XRO Daily Chart (Source: Thomson Reuters)
 

Integrated Research Ltd

IRI Dividend Details
 
Strong forecasted results: Integrated Research Ltd (ASX: IRI) foresees consolidated revenue in the range of $38.5 to $40.1 million for its first half ending December 31, 2015 indicating a healthy 15% to 20% growth over the corresponding prior period. Strategic investments and acquisition led to higher costs and so the profit after tax for the period is expected to be in the range of $5.9 million to $6.5 million compared to $7.5 million for the equivalent prior period. IRI predicts the conversion of strong pipeline to revenue in the second half thereby supporting profit growth for the full financial year.

 

Financial growth (Source: Company reports)
 
Recently, IRI announced that IR Prognosis has been selected by Cabcharge Australia Limited (ASX: CAB), the leading electronic payment system for taxis in Australia, to provide the company with more visibility into and increased performance of its payments platform, application and transactions. With a decent dividend yield, we give the stock a "SPECULATIVE BUY" at the current share price of  $1.91
 
 
IRI Daily Chart (Source: Thomson Reuters)
 

Amaysim Australia Ltd

AYS Details
 
Growth through acquisitions: Amaysim Australia Ltd (ASX: AYS) stock corrected over 20.07% in the last five days (as of February 15, 2016) offering an attractive opportunity for investors seeking for bargain opportunities. AYS is strengthening its business by acquiring 100% of the shares in Vaya Pty Ltd, a Brisbane based Mobile Virtual Network Operator, for an enterprise value of $70 million including equity value of $20 million.
 


Rising subscriber base (Source: Company reports)
 
Earnings from the acquisition of Vaya are net of one-off integration costs. The Vaya founder consulting fees and transaction costs are expected to make a minimal contribution to Amaysim's statutory EBITDA in financial year 2016. The transaction is expected to be materially accretive on an underlying NPATA basis for Amaysim shareholders in financial year 2017. We recommend investors to “BUY” the stock at the current share price of  $2.40
 
 
AYS Daily Chart (Source: Thomson Reuters)

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