Fairfax Media Limited

FXJ Details
·         Received a revised proposal from TPG Group:Fairfax Media Limited (ASX: FXJ) stock rose over 6.54% on May 15, 2017 after the company has received a revised proposal with a tweak from a consortium including TPG Group and Ontario Teachers’ Pension Plan Board (together with its affiliates, OTTP). This is to acquire 100% of the shares in FXJ (on a fully diluted basis) at a price of $1.20 per share (less the value of any dividends or other distributions declared, proposed or paid after May 14, 2017), with all the consideration being in cash. Moreover, the revised indicative proposal has come after the indicative proposal of $1.20 - $1.25 per share, which was recently received from the TPG Consortium for Domain, three newspapers and websites. It is to be noted that the Revised Indicative Proposal is subject to several conditions, including due diligence, shareholder approval at a Fairfax scheme meeting which would be required to implement the Revised Indicative Proposal, and other requisite regulatory approvals including an approval from the Australian Foreign Investment Review Board (FIRB) and New Zealand Overseas Investment Office (OIO). The assessment of the proposal is underway and the market will be updated accordingly. Overall, the broadened proposal (although at a lower price) looks favorable for FXJ in view of the issues relating to FXJ’s struggling divisions.

·         Recommendation: FXJ stock rose over 34.59% in the last six months (as of May 12, 2017) and s trading at high levels. Looking at the prevailing conditions, we give a “Hold” recommendation at the current price of $ 1.14

Galaxy Resources Limited

GXY Details
·         New Appointment and change of interests:Galaxy Resources Limited (ASX: GXY) stock rose over 4.2% on May 15, 2017 with improving sentiments while the company announced about a new appointment to GXY’s Board of Directors. Miss Xi Xi (with the previous experience in an equity fund) has been appointed as an Independent, Non-Executive Director of the company. Moreover, GXY gave notice of change of interests of a substantial holder, BlackRock Group, with an increase to 6.62% from 5.6%.

·         Recommendation: GXY stock rose over 31.94% in the last six months (as of May 12, 2017) and is still trading at a reasonable level. We give a “Buy” recommendation at the current price of $ 0.495 

Asset Portfolio (Source: Company Reports)

Disclaimer
 
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd currently hold positions in:  BHP, BKY, KCN, PDN, and RIO. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.