NetComm Wireless Limited (ASX: NTC)

Turnaround to half year profit: NetComm Wireless witnessed a stock price rise of 5.3% on March 02, 2018 while the group is gaining traction based on the latest half year result for the period ended 31 December 2017 that entailed record half-year revenues and earnings. NTC witnessed a revenue growth of 89% to $88.6 million and EBITDA growth of 13 times to $9.2 million. Group’s NPAT increased to $3.7 million, compared to prior period loss of $(1.7) million. The group has signed the contract with nbn to supply Network Connection Devices (NCDs) for nbn’s FTTC project and an initial volume commitment is to deliver $66 million revenue within an 18 month-period following launch planned for 2H18. NTC also received large orders for FTTC DPU contract with nbn. The group is in discussion with Tier 1 Carriers in Europe, UK and North America for the delivery of solutions based on NetComm’s existing product lines. The group is optimistic on its value-deriving efforts and aims to witness strong revenue and EBITDA growth over the remainder of FY18 with the roll-out of further contracts. The balance sheet also seems to provide a good platform to support the next leg of growth. In view of the trading scenario, the stock has room for growth and proffers a buying opportunity.
 

Amaysim Australia Limited (ASX: AYS)

Pressure mounting up at the back of lower than expected results: Amaysim seems to be hammered by the investors based on the lower than expected half year performance wherein the Board made the decision not to declare an interim dividend for the 2018 financial year in view of the group’s entry into the accelerated growth phase across all verticals while the group aims to invest for incremental near term organic growth and cross-selling. Further, the group reported a statutory loss after tax of $2,377k for the half year ended to 31 December 2017 against the profit of $8,314k as at 31 December 2016. This was at the back of strategic investments made by the Group to drive future business growth, including new product launches, investment into new verticals and integration costs incurred post the acquisition of Click. The group is positioning itself for top-line growth based on the performance witnessed in first half of the 2018 financial year, and January and February 2018, while challenges from intense competition in mobile are expected to be seen on a continued basis. It would be prudent to hold the stock at the current price, given the potential AYS holds based on its historical performance.
 

Statutory Result (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 do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.