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Kalkine Daily 08/07/2015 + Is Slater & Gordon a Buy, Sell or Hold ?

Jul 15, 2015

| Read Time :10 Mins

In today’s daily we have covered stock research on 2 Small Cap Growth Stocks and Is Slater & Gordon a Buy, Sell or Hold ?

The S&P 500 index was up by 12.58 points or 0.61% to 2081.34. U.S. stocks ended higher after a choppy session on Tuesday, as a rebound in U.S. oil prices helped offset concerns about a slowdown in China and the Greek debt crisis. US equity markets gyrated sharply on Tueday, ending a volatile day higher after briefly falling below a key technical level as turmoil in China and the eurozone knocked investor confidence.

While investors remain skeptical that a deal will be reached between Athens and its international creditors, the tone of negotiations softened somewhat as new Greek finance minister Euclid Tsakalotos spoke with his counterparts at an emergency summit in Brussels. US utility stocks,the worst performing trade of the year on the S&P 500, led the benchmark index on Tuesday as investors piled out of European equities and into safe-haven assets. US traded Chinese companies suffered their biggest one day drop in over four years on Tuesday as investors took fright at the ongoing turmoil on the main indices in China and Hong Kong - which were roiled by another bruising day of trading. Novartis has received approval for Entresto, its heart-failure pill, from US regulators, paving the way for it to launch what analysts are touting as a blockbuster drug.

Novartis Daily Chart (Source - Thomson Reuters)

S&P ASX 200 was up by 106.40 points or 1.94% on Tuesday and closed at 5581.40 points.Qantas was the day's best performing stock. Its share price rose 7.9 per cent to $3.43. Rio Tintorose 1.1 per cent, BHP Billiton added 0.9 per cent and Fortescue Metals Group soared 4 per cent. Santos fell 0.5 per cent and Beach Energy was down 1 per cent, but Origin Energy ended the day up 0.1 per cent and Woodside gained 1.5 per cent.

The rally was led by the banks, which all gained strongly. Commonwealth Bank shares were up 1.6 per cent to $87.89, National Australia Bank was up 2.2 per cent to $34.21, ANZ Banking Group added 2.55 per cent to $33.03 and Westpac gained almost 4 per cent to $33.76. Ore with 62 per cent iron content delivered to Qingdao sank 5.1 per cent to $US49.60 a tonne on Tuesday, falling for a ninth day. The Australian dollar is trading at US74.42¢, after dipping below the US74¢ mark overnight, compared with Tuesday's local close of US74.85¢.

Qantas Daily Chart (Source - Thomson Reuters)

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2 Small Cap Growth Stocks

Freelancer (FLN)

Freelancer stock ramped up 176% since listing and over 93% year to date. The company’s main source of revenue is new and existing users posting new projects and completing the projects along with crowdfunding the contests on Freelancer.com and its regional websites.

FLN is the world’s largest freelancing and crowdsourcing marketplace by total number of users and total number of projects posted. The company has 44 regional websites, 19 supported countries, 33 supported languages and dedicated multilingual support team. Click Here To Read The Full Report

Freelancer Financial Highlights (Source - company Reports)

Is Slater & Gordon a Buy, Sell or Hold ?

The shares of Slater & Gordon Limited (ASX: SGH) have been beaten down by over 42% in the last four weeks, as the group confronted that the Australian regulators would launch an investigation on the company’s errors in financial reporting. Moreover rumors of the group’s share price manipulation by hedge funds as well as criticism on the company’s extremely aggressive accounting practices have also contributed to the sharp sell off on the stock. Investigation by British regulators on Quindell, wherein Slater & Gordon acquired Quindell’s professional services division for $1.3 billion has also impacted the sentiment.

Meanwhile, the company reported a favorable first half of 2015 performance, posting a revenue increase of 37.6% to $245.3 million, against the corresponding period of earlier year. The firm also improved its normalized EBITDA margin to 23.9%, as compared to 23.1% in 1H15. The normalized net profit after tax rose 46.5% to $35.9 million from $24.5 million in first half of 2014. Consequently, the basic earnings per share improved by 42.3% y-o-y to 17.5 cents. Slater & Gordon declared a dividends of 3.5 cents, against 3 cents during the first half of 2014. Click Here To Read The Full Report

SGH Revenue (Source: Company Reports)

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

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