GetSwift Ltd (ASX: GSW)

GSW Details

High quality partners on platform: GetSwift Ltd, the logistics management software company providing cloud-based software-as-as-service (SaaS) platform, rallied 3.8% on November 14, 2017 with the completion of integrations with a number of key business partners under the global strategic growth plan. In an attempt to expand the scale of global delivery platform, the group has been focussing on e-commerce, financial, and food verticals particularly. The recent integration strengthens the expansion efforts and relationship with high-quality providers, which include Eat24 that has a food delivery app with over 40,000 restaurants in the United States, Menulog that is leading online food and beverage ordering platform in Australia and New Zealand with restaurant partners including franchises such as McDonald’s, Shopify that is an e-commerce platform for online stores and retail point-of-sale (POS) systems, Woocommerce that is an open source e-commerce plugin for WordPress designed for small to large-sized online merchants, Xero that is among the leaders of online accounting software connecting small businesses to their advisors and other services, and Zapier that is a workflow provider. Thus, the group is enhancing its customer reach at a good pace. While the stock has plunged 23% in last one month owing to profit booking, the same is up 139% in last six months (as at November 13, 2017), and there seems to be more room for growth. We give a “Hold” at the current price of $2.16
 

Ingenia Communities Group (ASX: INA)

INA Details

Increasing returns to investors: Ingenia Communities’ securities ended flat post edging slightly up on November 14, 2017. The group provided an update at its Annual General Meeting while highlighting the increased return to investors with 9.7% growth in distribution per security in FY17. INA’s Lifestyle and Holiday communities’ portfolio has grown with 12 assets acquired or contracted and the group has also indicated for settlement of 211 new homes. The new home settlements are expected to drive earnings growth going forward.
 

New Home Settlements (Source: Company Reports)
 
The sales margins have been expanding with growth in prices and the growing volumes with suppliers have been leveraged for benefits. The group had also received $41 million from the sale of non-core assets during FY17 and raised new equity of $88 million for acquisition of new communities and accelerating development spend. There was a 44% rise in operating cash flow at the back of recurring rental returns from its existing portfolio, new acquisitions, sales growth, and overall rental and tourism earnings. The group has now expanded its guidance and expects to deliver FY18 EBIT of $45-47 million (against previously guided $42-46 million) with EPS of over 15.3 cents given accelerated development pipeline, better performance of existing portfolio and sale of non-core assets for meeting funding requirements. We give a “Speculative buy” at the current price of $2.69
 

Sirtex Medical Ltd (ASX: SRX)

SRX Details

Volatility still prevails with currency headwinds: Sirtex witnessed a stock price slip of 1% on November 14, 2017 while the group delivered a presentation at UBS Australasia Conference highlighting the long-term growth for SIR-Spheres being achieved through a multi-faceted strategy with 3 main elements relating to clinical evidence, treatment guidelines and geographic expansion. SRX also announced about the results of three large clinical studies during FY2017. While the group highlighted that the treatment of cancer continues to evolve, the group may find revenue streaming in from Canada and Brazil based on the efforts. Lately, the group updated the market about launch of a new Investigator Initiated Trial (IIT) in non-resectable advanced hepatocellular carcinoma (HCC), under NASIR-HCC, which is a multi-centre, open label, single-arm study of the safety and anti-tumour efficacy of Opdivo after SIR-Spheres microspheres for the treatment of patients with HCC. On the other hand, SRX also updated about flat 1Q FY18 worldwide dose sales against the prior corresponding period at the back of organisation distraction from FY17 and competitive pressures. 1Q FY18 sales revenue of $53.3 million was down 4.8% owing to currency headwinds. Nonetheless, unaudited 1Q FY18 constant currency profit before tax is said to be up 11.3% while reported PBT is up 2.9%. SRX is still positive on performance given new growth initiatives. With the mixed scenario and some drag on dose sales, we put a “Hold” at the current price of $13.99

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