Collins Foods Ltd 

Expansion through 50 new Taco Bell restaurants across multiple states in Australia in next three years: Collins Foods Ltd.’s (ASX: CKF) stock has risen 26.3% in three months as on October 11, 2018. The company has recently signed a Development Agreement with Taco Bell (a subsidiary of Yum! Brands Inc.) to open more than 50 new Taco Bell restaurants across multiple states in Australia between 1 January 2019 and 31 December 2021. The Development Agreement that has presence in three Australian states includes Queensland, specifies an annual new build restaurant number, and will provide CKF with the right of first offer in relation to the establishment of new Taco Bell restaurants across the relevant states. The roll-out of stores will be funded from internally generated cash flows. Meanwhile, CKF plans to open three restaurants in Robina, Cleveland and North Lakes before the end of calendar year 2018. Moreover, the group has a stronger market presence in the Netherlands than Germany with growing brand awareness. KFC Australia is targeting to build 40 to 45 restaurants over the next five years. On the other hand, CKF for FY 18 has reported 21.7% growth in the Group revenue to $770.9 million and 16.4% growth in underlying EBITDA to $94.5 million. This is on the back of vigilant cost control and a continuous focus on the improvement of the operational efficiency. Based on the foregoing, we give a “Buy” recommendation on the stock at the current price of $ 6.600 and the stock is expected to remain in overbought zone for some time while it witnessed some range contraction lately.
 

ResApp Health Limited 

Positive Clinical Study Results: ResApp Health Limited (ASX:RAP), a leading digital health company that develops applications on smartphone in order to  diagnose and manage the respiratory disease, has lately announced positive results from its prospective clinical study for double-blind obstructive sleep apnoea (OSA). As per the analysis, ResApp confirmed that algorithms for machine learning were able to accurately identify those patients who suffer from overnight breathing and snoring problems and the sounds got recorded with the help of a smartphone kept on a bedside table. Recruitment of patients from The Park Private Hospital and Hollywood Private Hospital in Perth was done while analysis was done on 582 adult patients. Out of which 62% were male. The average patients’ age was of 53 years (range 18-94) having a mean Apnoea hypopnea index (AHI) of 26/h (ranging from 0-143). ResApp’s algorithms showed sensitivity of 84% and specificity of 83% for identifying patients having greater AHI than or equal to 5/h (patients in the category of mild, moderate or severe OSA). The value of 0.9 was found for the area falling below the receiver operating characteristic curve. The algorithms also proved beneficial in identifying patients with Apnoea–Hypopnoea Index(AHI) greater than or equal to 15/h which indicated moderate or severe OSA and patients diagnosed with AHI greater than or equal to 30/h represented severe OSA. Overall, using off-the-shelf smartphone, the company has opportunity target for the OSA patients and can deliver a highly-scalable, easy-to-use, and accurate screening test.

ResApp Health Limited has shown a positive performance report throughout its journey which is 1135% price movement since inception. However, in the year 2018, company has made loss of A$ 6,533,435 and also recorded a loss of 0.99 cents per share. While RAP is yet to report better financials, the stock is already at higher levels and can be watched for. It last traded at $0.200 as at October 12, 2018 (down 4.7%). The moving average convergence and divergence line shows that it is moving away from the signal line in the downward direction and price might fall in a better investment zone.
 

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