Mid-Cap

REASONS BEHIND THE RALLY OF THESE TWO STOCKS

April 05, 2016 | Team Kalkine
REASONS BEHIND THE RALLY OF THESE TWO STOCKS

APN Outdoor Group Ltd

Industry: Media


APO Dividend Details
  • Delivered better than prospectus performance: APN Outdoor Group Ltd (ASX: APO) surged over 6.4% on April 05, 2016 leading to a total rally of 8.32% in the last four weeks alone (as of April 04, 2016). This strong performance in the stock could be attributed to its strong revenue growth of 20% to $300.8 million against prior corresponding period (pcp) which is better than its prospectus forecasts. APO enhanced its audiences and digitalization’s while improved its markets in both Australia and New Zealand. XtrackTV performance was better than expected in Adelaide and Brisbane markets.
  • Recommendation: The heavy rally in the stock placed them at higher valuations which is trading at high P/E and is close to its 52-week high price. We believe that the stock is “Expensive” at the current price of  $6.79
 

FY15 performance (Source: Company Reports)
 

Select Harvests Limited

Industry: Food Producers


SHV Dividend Details
  • Pricing pressure: Select Harvests Limited (ASX: SHV) managed to rise over 8.97% on April 05, 2016 but has fallen by over 55.93% in the last three months alone (as at April 04, 2016). This heavy fall in the stock may be owing to the almond market fluctuations. Further, the recent rise may have been driven by excessive buying of stock considering the recent low price witnessed since last one year.
  • Recommendation: We maintain our “Expensive” recommendation on this stock at the current  price of  $4.13


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