Australian Agricultural Company Limited (ASX: AAC)
Changes as per Quarterly Rebalance of the S&P/ASX Indices: Australian Agricultural Company Ltd.’s stock surged 4.3% on March 09, 2018 while the stock will be removed from S&P/ASX 200 Index, effective from March 19, 2018. On the other hand, the company has appointed Mr Hugh Killen as its Managing Director and Chief Executive Officer, effective from February 2018. The investors are optimistic that Mr Killen will help turnaround the company’s performance in the near term. In FY 2017, AAC had posted a loss of $37.7 million, compared to a profit of $47.9 million a year earlier. AAC’s diluted EPS was (6.46) cents compared to 8.21 cents last year and its net operating cash outflow was $47.47m compared to an outflow of $34.46m in the pcp. At the back of the lacklustre result, the group did not declare any dividends. The group is now also looking for a Chief Financial Officer. Meanwhile, AAC stock has fallen 10.38% in three months as on March 08, 2018 but now seems to witness some buying. We give a “Hold” recommendation on the stock at the current price of $1.215
Genworth Mortgage Insurance Australia Limited (ASX: GMA)
Buy-back gained traction: Genworth Mortgage saw a stock price rise of 7.66% on March 09, 2018 as we see momentum picking up post a 25.4% fall of last three months. The group’s capital position and buy-back program had gained a lot of traction during 2H17. Otherwise, Genworth’s 2017 full year financial results entailed statutory NPAT of $149.2m and underlying NPAT of $171.1m and the board declared a fully franked final ordinary dividend of 12 cps payable on 16 March 2018 to shareholders registered on 2 March 2018. The group is benefitting from its commercial relationships with over 100 lender customers across Australia and Supply and Service Contracts with 10 of its key customers. We have a “Hold” on the stock at the current price of $2.53
Vocus Group Limited (ASX: VOC)
Gaining lost momentum: Despite being dropped from the ASX100 Index as per Quarterly Rebalance of the S&P/ASX Indices, Vocus Group witnessed a stock price rise of 5% on March 09, 2018. The group recently appointed Bob Mansfield (previously the Deputy Chairman and Lead Independent Director) as the Chairman and this led the group see some upside momentum. VOC had earlier reported the interim result for six months to 31 December 2017 with a decent 4% revenue growth over the prior corresponding period, while underlying EBITDA growth was 8% at the back of a healthy performance by Enterprise and Wholesale division. It seems that the group is strategizing on many fronts and this might be helping it regain the lost momentum. We have a “Hold” on the stock at the current price of $2.50
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