Whitehaven Coal Limited (ASX: WHC)

Quarterly Update:The Group released an update for its Quarterly activities ending on 31 March 2018 and reported an increase of 4 per cent and of 3 per cent for ROM coal production (5.9Mt) and for Saleable coal production (5.2Mt), respectively, as compared to the corresponding period in the previous year. The Group paid a $129 million of interim dividend (13 cents per share) to the shareholders in March which represented about 50 per cent of the NPAT for the first half of FY18. WHC has also agreed to purchase Rio Tinto’s 75 percent interest in the Winchester South metallurgical coal project for a total consideration of US$200 million. Just after the release of this update, the stock price went up by 3.03 per cent on 17 April 2018 and it is moving towards its 52-week high price. We give an “Expensive” recommendation at the current market price of $ 4.410.
 

EML Payments Limited (ASX: EML)

Reaffirmed FY18 guidance: EML operates in large, fast growing-markets and still holds a relatively small market share that offers significant market potential in years to come. The Company recently reaffirmed its FY18 guidance through presentation made at the Goldman Sachs annual small and mid-cap conference. The company expects to maintain an EBTDA range of $19.5 million to $21.5 million for FY18.Gross Debit Volume and Revenue have grown faster than expenses which resulted in EBTDA margin expansion (11% in 1HFY15 to 35% in 1HFY18). The stock price was down by 5.3 per cent in the past one month but the same rose by 6.5 per cent on 17 April 2018. We recommend to “Buy” the stock at the current market price of $ 1.230.
 

Village Roadshow Limited (ASX: VRL)

Trading Update: VRL released its trading update for 9 months’ period ending on 31 March 2018, which was not very well appreciated by the market. VRL’s two main divisions, Theme Parks and Cinema Exhibitions, have continued to experience challenging trading conditions and overall VRL results for the year ending on 30 June 2018 are now expected to be below those set out in previous VRL announcements which were made in January and February 2018.  VRL’s Theme Parks on the Gold Coast have been impacted by the low attendance numbers over the course of the Commonwealth Games and due to wet weather conditions. It is now expected that FY18 EBITDA and profit before tax result for this division will be below that of the previous year. Its new pricing/ticketing and marketing strategy for the Theme Park division will be profit accretive and VRL currently expects FY18 attributable NPAT before material items and discounted operations to be within the range of a loss of $10 million to break even. This update hammered the investors sentiments and the stock fell by 15.2 per cent on 17 April 2018. We maintain a “Hold” at the current market price of $ 2.670.
 

Liquified Natural Gas Limited (ASX: LNG)

Exit from the Fisherman’s Landing Project:Liquified Natural Gas executed a Share Sale Agreement with a third-party (the Buyer) for the acquisition of all the shares of LNG’s wholly-owned subsidiary, Gladstone LNG Pty Ltd. In return, the Group received US$800,000, previously held in a trust account under a previously disclosed License Transfer Agreement, and a reimbursement for security deposits posted by Gladstone LNG related to the Fisherman’s Landing project licenses. Pursuant to the terms of the Agreement, the Buyer secured ownership of the proposed Fisherman’s Landing LNG Project and it included the licenses and the opportunity to utilize LNG’s OSMR® technology on a future LNG Project at the Fisherman’s Landing Gladstone site. The Buyer shall pay LNG an additional US$4 million if the financial close is achieved for an LNG project at the site.Despite the update, the stock price was down by 2.3 per cent on 17 April 2018. As of now, we give a “Hold” recommendation on the stock at the current price of $ 0.430.

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