NetComm Wireless Ltd

NTC Details
·         Ongoing bullish momentum: NetComm Wireless Ltd (ASX: NTC) stock rose over 4.15% on May 16, 2017 leading to a total rally of over 14% in the last five days. Being a debt free company, the group is investing to target Tier 1 clients and has inked three major contracts from great customers. The group expects the ramp up of the US fixed wireless by next fiscal year while nbn FTTC ramp up is expected in first half of FY18. Fixed Wireless coverage enhanced 144k premises from 31 December 2015 to be at 485k premises as at 23 March 2017 while the Fixed Wireless take up rate surged from 24.3% at 31 December 2015 to 34.9% at 23 March 2017. Over 169k premises have activated Fixed Wireless connections as at 23 March 2017.

·         Recommendation:NTC stock is currently trading at a reasonable level and we give a “Buy” recommendation on the stock at the current levels of $ 1.63
 

Ericsson/nbn rollout gaining pace (Source: Company Reports) 

Qantas Airways Ltd

QAN Details
·         Moody’s upgraded group’s rating: Qantas Airways Ltd (ASX: QAN) stock rose over 2.9% on May 16, 2017 driven by the Moody’s upgrade. Moody’s Investor Service, has upgraded the group’s investment grade credit rating from Baa3 to Baa2 (Stable). Meanwhile, Moody’s reported that they would consider downgrading the rating if Qantas deviates from its financial framework or if debt to EBITDA exceeds 3.0x on a sustained basis.

·         Recommendation: QAN already rallied over 50.8% in the last six months (as of May 15, 2017) and is trading at higher levels. Further, there are risks related to fuel pricing based on current commodity scenario. We give an “Expensive” recommendation at the current price of $ 4.92

Whitehaven Coal Ltd

WHC Details
·         Weak sector sentiment: Whitehaven Coal Ltd (ASX: WHC) stock traded flat post an initial uplift on May 16, 2017 with slight improvement in commodity prices. On the other hand, the stock has been witnessing a bearish momentum and lost over 15.9% in the last four weeks hurt by weak commodity sentiment. Moreover, despite a positive year to date performance, the group’s saleable coal production for the March quarter 2017 lost over 4% while the overall coal sales fell over 11%.

·         Recommendation: WHC stock already generated an outstanding return of over 242.5% in the last one year (as at May 15, 2017) and we believe investors can leverage the rise.We give an “Expensive” recommendation at the current price of $ 2.50
 

Production and Sales Highlights (Source: Company Reports)

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