oOh!Media Ltd

Integration of Adshel: oOh!Media Ltd (ASX: OML) is continuing with the integration of Adshel into the company, as per the plan. OML had completed its acquisition of Out of Home street furniture specialist Adshel from HT&E Limited for a cash consideration of $570 million. Adshel’s portfolio and operations are highly complementary to OML’s business; and with this acquisition, the company plans to enter into the new segments of street furniture and rail in Sydney and Melbourne. Further, the acquisition is aligned with OML’s digital strategy as Adshel’s street furniture is early in its digitization lifecycle. Additionally, OML for CY18 expects the underlying EBITDA to be in the range of $94m to $99m and capex to be in the range of $30m to $40m. This is excluding the impact of the acquisition of Adshel. Meanwhile, OML stock has fallen 24.90% in three months as on November 26, 2018 and is trading at a P/E of 18.35x. The stock is trading at the price of level $4.17, and has support at $3.38 and resistance at $4.65. Based on the foregoing and the changing telecom landscape, we have a wait and watch stance on the stock at the current price of $ 4.170 (up 5.57% on November 27, 2018).
 

Vocus Group Ltd

Enhanced director’s interests in the group: Vocus Group Ltd. (ASX: VOC) released a change of director’s interests notice that shows the non-executive director, Bruce Akhurst, has been buying shares on market this month. As per the release, Mr Akhurst has bought 50,000 Vocus shares for a total consideration of $164,844.87. On the other hand, the company’s current focus recently has been leadership renewal, to appoint key executives where there were gaps. The next phase of the company will be to examine overlap and drive the removal of costs. VOC’s Consumer and Commander businesses will be brought under the leadership of Antony de Jong, who had joined Vocus in September. VOC is urgently addressing the significant turnaround challenge with the Commander business by securing its customer base and re-establishing the brand in the market. For FY 19, VOC expects underlying EBITDA to be in the range of $350m - $370m. The revenue and expenditure will be skewed towards second half of the year. Meanwhile VOC stock has risen 14.98% in three months as on November 26, 2018. The stock is trading at the price of level $3.42, and has support at $2.95 and resistance at $3.55. The group, which has a high institutional ownership, is expected to improve its earnings profile in the next 2 years. Based on the foregoing, we give a “Hold” recommendation on the stock at the current price of $ 3.42, up 3.6% on November 27, 2018.
 

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