Stocks’ Details

Praemium Limited (ASX:PPS)

Expansion in UAE- Praemium Limited is a provider of investment platforms, investment management, portfolio administration, client relationship management (CRM) solutions and financial planning tools to the wealth management industry with offices in Australia, the United Kingdom, Jersey, Armenia and Hong Kong. Recently, the Company signed a 5-year contract with CMC Markets Stockbroking Limited (CMC) to provide Tax Tools, Praemium’s advanced tax reporting solution. The Group has been providing Tax Tools since 2008 to a key institutional client at a previous minimum contract value of $1 million per annum and under this new agreement, Praemium will continue to provide tax and CGT optimisation tools for existing Tax Tools users, who will transition to CMC. In February, Praemium reported first-half underlying EBITDA of $4.2 million, up 51 per cent on the prior corresponding period. 


EBITDA Performance (Source: Company Reports)

The Group recently launched its Smartfund range of funds into the United Arab Emirates (UAE) market, following regulatory approval by the Securities and Commodities Authority. This launch of Smartfund range and its relocation to the DIFC (Dubai International Financial Centre) enforces the Group’s ongoing commitment to the region which is a significant step forward in the Gulf State markets. The Group is one of the very first retail platform to be established within the DIFC. Despite an increase in investor uncertainty, the Group reported that its asset inflows held up and the overall FUA increased by 5 per cent in March quarter over the December quarter. ROE improved from 0.7 per cent in June 2017 to 4.1 per cent in December 2017 and whereas ROIC improved from 0.6 per cent in June 2017 to 4.1 per cent in December 2017. The stock has been rising up with 141% gain in last one year cent as on July 06, 2018. Thus, we give a “Hold” recommendation at the current market price of $0.87 by looking at its portfolio which has grown immensely and the growth of managed accounts.
 

Beach Energy Limited (ASX:BPT)

Trading at Higher Level- Beach Energy Limited is engaged in oil and gas exploration, development and production and investment in the resources industry. Beach Energy Limited delivered a strong set of third-quarter results wherein total sales volume grew by 143 per cent as compared to previous corresponding period and revenue growth of 89 per cent to $133 million in Q3FY18 was reported. The company has also tightened the FY18 guidance of pro forma production to 26.0 – 27.0 MMboe (from 25.5 – 27.6 MMboe). It was reported that approximately 48 per cent of Beach 2P reserves were classified as underdeveloped as on 30 June 2018.  The Group paid $1.6 billion for Lattice Energy, of which $300 million came from an entitlement offer and the remainder from its cash reserves and debt facilities. While the stock has risen 216.83 per cent in past one year as on 6 July 2018 and climbed up by 3.23 per cent as on 9 July 2018, it is trading at its 52-week high price. It was a mixed performance for the oil prices in the last week (ending on 6 July 2018) as WTI Crude Oil rose marginally with a slight dip in Brent Crude Oil price and this has been playing over BPT as well along with other energy stocks. The Group witnessed 1.88% of short sell position (as per the report on 3 July 2018). Given the run up, investors can book the profit at the current price of $1.915.


Beach 2P Reserves contribution (Source: Company Reports)

 
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