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Kalkine Daily 06/07/2015 + Is Cochlear Limited a BUY ?

Jul 15, 2015

| Read Time :10 Mins

In today’s daily we have covered stock research on 2 Small Cap dividend Stocks To BUY, 2 Small Cap Gold Stocks To Buy and Is Cochlear Limited a BUY ?

Wall Street was closed Friday ahead of the July 4th Independence Day holiday. Trading will resume on Monday. Greece’s leftwing government was set for a decisive victory in Sunday’s referendum as voters backed its call to reject a compromise with international creditors, raising serious doubts about the country’s ability to remain inside the Eurozone. With 85 per cent of votes counted, the No camp had won 61.5 per cent and was leading in every region of the country, a remarkable political exploit by Greek prime minister Alexis Tsipras. But it is also likely to plunge Greece deeper into turmoil as it tries to prevent the collapse of a financial system that is rapidly running out of cash.

European stocks have recorded their worst weekly loss in two months after the Greek government's referendum curve ball knocked markets. The FTSE Eurofirst 300 index fell 3.5 per cent, or 55.71 points, on the week, to 1,518.37 - its biggest weekly decline in point terms since the first week of May, according to Bloomberg data. The 3.5 per cent drop is the biggest decline for an index made up of Europe's 300 largest listed companies the week ending December 12, when it dropped 5.9 per cent.

FTSE Eurofirst 300 Daily Chart (Source - Thomson Reuters)

S&P ASX 200 was down by 61.50 points or 1.10% on Friday and closed at 5538.30 points. The biggest gainer of the week was the struggling Pacific Brands, up 46.9 per cent to 0.47 after a profit expectations upgrade. Fellow retailer Kathmandu Holdings also surged, up by 23.29 per cent to $1.53 on the back of a takeover offer made to the board. Bluescope Steel was up 25.96 per cent to $3.59. Infrastructure group Asciano surged 22.7 per cent to finish the week on $8 on the back of a $9 billion takeover offer from Brookfield Infrastructure Group.

The most significant losses of the week were law firm Slater and Gordon after the announcement of an ASIC probe into its accounting policies, taking shares down 24 per cent to $3.83. Manufacturing company Bradken also shed value, down 12.1 per cent to $1.34, after news of a $70 million takeover bid by two private equity groups. In banks, the Commonwealth Bankfinished just up by 0.01 per cent at $86.66 while the ANZ Banking group finished down 1.93 per cent at $32.46; Westpac Banking Corporation down by 0.76 per cent to $32.46 and the National Australia Bank 1.1 per cent to close at $33.71.

ASX 200 Daily Chart (Source - Thomson Reuters)

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2 Small Cap Dividend Stocks To BUY

CashConverters (CCV)

In today’s daily we cover Cash Converters International (CCV). The company recently announced that its class action in New South Wales has been settled. The settlement provides for Cash Converters to pay $20 million into a fund for distribution to the members of its class. Class members comprise borrowers in New South Wales who took loans from Cash Converters subsidiaries and franchisees during the period 1 July 2010 to 30 June 2013. Cash Converters will also pay legal costs capped at $3 million. Any part of the distribution fund which remains after efforts to contact and pay class members have been exhausted and after payment of the fund administrator’s costs, will be repaid to Cash Converters. The company also recently announced its March quarterly update whose key highlights were an increase in revenue of approximately 9% and an increase in EBITDA of approximately 12.1%, on the previous corresponding period.

The solid operations of Australian business (increase in EBITDA of 16.5%), was negatively impacted by poor performance of UK business (EBITDA down 94.5%). The division financial services administration showed a maximum increase of 31.3% while the division financial services personal loans showed the next best increase of 18.5%. The maximum decline was seen in the division Green light auto of -320%, as compared to the previous corresponding period. To read the full report Click Here

CCV Daily Chart (Source - company Reports)

Two Small Cap Gold Stocks To BUY

Beadell Resources (BDR)

Beadell Resources Ltd (ASX: BDR) has recently reaffirmed its confidence of achieving a full year production guidance in the range of 170 000 oz and 190 000 oz. However, since its openpit operations witnessed a lower-than-expected material movement during April and May, the firm has recently adjusted its June quarter production figures accordingly. The Tucano mine’s operations in Brazil got affected by the rainfall, which in turn obstructed material movement by turning the Urucum openpit from clay-rich colluvium and oxide overburden to harder ore. Consequently, the group has reduced the Gold sales estimates from the Tucano to be in the range of 25 000 oz and 28 000 oz for the June quarter, which is 33 000 oz lower as compared to the March quarter.

On the other hand, we believe that this negative impact has already been factored in the firm’s share prices and the group has been making solid efforts to boost its performance for the second half of the year. As and when the dry season starts, the group has planned a huge material movement on the site. As a result, the firm estimates a gold sales in the range of 115 000 oz - 125 000 oz during the second half of the year, at costs in the range of $810/oz and $890/oz. Click Here To Read The Full Report

Gold Nose and Mutum Location (Source: Company Reports)

Level 13 167 Macquarie Street
Sydney NSW 2000 Australia
E-Mail - [email protected]
Phone - 02 8667 3147

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