AVENTUS GROUP (ASX: AVN)

Well diversified portfolio:Aventus has lately acquired Aventus Property Group Pty Ltd (APG) and Aventus Capital Ltd (ACL) on October 1, 2018, to form the fully internalized vehicle, the Aventus Group. The company has presented its annual report for the year ended on June 30, 2018 on October 29, 2018. The fund owned about 20 LFR centers valued approximately at $1.9 billion in NSW, QLD, SA, and WA as on June 30,2018. The portfolio has minimum exposure towards turnover based leases which hold the risk of downturn in retail sales.
Strong Financials:Group’s Funds from Operations (FFO) witnessed a rise of 2.3% to $89 million or 18.1 cents per unit as reported during the year ended June 2018. Company posted 2.4% rise in the distributions. There was 7.2% growth in the net tangible assets per unit up to $2.38 during the year ended on June 30, 2018. 4.35% rise in the revaluation gains with the portfolio valued at approximately $1.9bn was another highlight. Company made significant progress on refinancing the debt book with the next debt maturity extended to October 2020 and raised weighted average debt expiry to 4.4 years.
Technically, the scrip has made bearish engulfing on the monthly chart and is trading at the lower end of the bollinger bands. Major indicators like Relative Strength Indicator (RSI) etc. reflect some upside moving forward.
The market cap of AVN was recorded $1.03bn, with P/E of 7.09x (low levels) as on November 02, 2018. At current juncture, the scrip is trading at the price levels of $2.01.  Strong association with the partners, along with strong financial data and trading at lower end on Bollinger bands look interesting. We give a “Speculative Buy” recommendation on the scrip at the current price levels of $ 2.01 while the group has a dividend yield of about 8.36% and aspires to become the leading large format retail pure-play landlord across Australia.
 

WAM RESEARCH LIMITED (ASX: WAX)

Healthy portfolio performance: WAX presented its investment update on October 12, providing an insight to the performance report. WAX posted moderate to healthy performance for the month of September with 1.4% rise in portfolio performance. Positive contributors to the portfolio included GTN Limited (ASX: GTN), Mayne Pharma Group (ASX: MYX), and Primary Health Care (ASX: PRY). Technically, the scrip after recording the highs of $1.7 in the month of September is trading below the high levels, but in green zone. Trading at the upper end of the bollinger bands with the bands getting expanded at the upper side indicates upside potential. Major indicators like RSI indicate for an overbought territory and might show some dip from the current levels but with overall bullish trend the dips will be good to buy. Moving Average Convergence Divergence is also in positive territory.

Fully Franked Dividends (Source: Company Reports)
The market cap of WAX was recorded at $284.34m, with P/E of 12.95x as on November 2, 2018. At current juncture, the scrip is trading at the price levels of $1.5. Healthy portfolio performance in the month of September despite the highly volatile scenario in global markets and stock trading at over bought zone as per technical charts exhibits a “Speculative Buy” scenario at the current levels of $1.5, as WAX has a dividend yield of about 6.33%.
 
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