Seven West Media Ltd

SWM Details
 
Recently, Seven West Media Ltd (ASX: SWM) confirmed amendments to its Yahoo7 joint venture agreement. As per the new agreement, which coincides with the completion of Verizon’s acquisition of Yahoo, Inc. and the formation of Oath, will continue to invest in the market-leading Yahoo7 joint venture in Australia. Both Seven West Media and AOL/Verizon will also explore broader opportunities that build on Oath’s consumer brands, original content, ad tech, proprietary data and potential acquisitions to further scale Yahoo7 in the region. Under the new agreement, SWM will launch and market its own long form catch-up TV service with TV content currently on PLUS7 and offer that exclusively through a separate, new and fully owned Seven platform within six months. Further, Yahoo7 JV will be tasked with exploring new opportunities with a broader content set including content from AOL/Verizon. We maintain a “Buy” recommendation on the stock at the current price of $0.825
 

SWM Daily chart; (Source: Thomson Reuters) 

Independence Group NL

IGO Details
 
Commencement of Lake Mackay JV Field Activities: The diamond drilling program at Grapple will increase the understanding of the style of mineralization while also potentially growing the deposit. Further, the encouraging results so far are evidence that Lake Mackay has the potential to be a new met allogenic province. IGO has only tested the initial anomalies identified within areas which are effective for soil sampling on about 7% of the JV tenure. The success of intersecting mineralization from the limited programs completed supports the concept, generated from continental-scale targeting, that the Lake Mackay Project could represent an emerging new met allogenic province. Importantly, logging of diamond core and subsequent analysis will increase the understanding of the stratigraphic/structural controls of mineralization and the nature of the mineralization. Given the ongoing developments, progress at Nova project and its contribution to overall operating margin going forward, we maintain a “Buy” recommendation on the stock at the current market price of $3.23
 

IGO Daily chart; (Source: Thomson Reuters)

TPG Telecom Ltd

TPG Details
 
Investing heavily to withstand raising competition: Recently, TPG Telecom Ltd (ASX: TPM) received a 2x10MHz of spectrum in the 700MHz band at the auction by the Australian Communications and Media Authority (ACMA). The spectrum license would start from 1 April next year and will expire on 31 December 2029. Accordingly, they are building a mobile network in Australia using current advanced technology for over $1.9 billion, which accounts over $600 million for network rollout capital expenditure over a three-year period to achieve 80% population coverage, and $1,260 million for the 700 MHz spectrum, which would be paid in 3 annual instalments. The company expect to incur a capital expenditure of $142 to $182 million in FY17 at Singapore. The group recently finished raising over $400.3 million via the entitlement offer, and reiterated FY17 guidance, which would not be impacted by the spectrum acquisition or the equity raising. TPM expects an underlying EBITDA of $820 million to $830 million for FY17. TPM stock has a 2.7% dividend yield and trading at a reasonable P/E. Based on the foregoing, we give a “Buy” recommendation on the stock at the current price of $5.82
 

TPG Daily chart; (Source: Thomson Reuters)

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.