Northern Cobalt Limited (ASX: N27)

Completed new high resolution aeromagnetic and radiometric survey: Northern Cobalt Limited.’s (ASX: N27) stock plummeted 7.14% on August 13, 2018 despite that the company announced for completion of new high resolution aeromagnetic and radiometric survey over the Wollogorang Cobalt Project at a flight line spacing of 75m. The company has identified multiple new targets similar or larger in scale to N27’s existing Stanton Cobalt Deposit showing the prospectivity of large parts of the project area and the potential of this underexplored region. Drilling across the project has been identified to continue until the wet season advances in the region (i.e., November). Meanwhile, N27 stock has fallen 49.09% in three months as on August 10, 2018. We give an “Hold” recommendation on the stock at the current price of $ 0.130.

Nufarm Limited (ASX: NUF)

Challenges on Glyphosate registrations: Nufarm Limited (ASX: NUF) is under materials sector and the company is an Australasian marketer and manufacturer of chemicals. It is a crop protection and seed technologies company that manufactures and sells a range of crop protection products. Australia and New Zealand, Asia, Europe, North America and Latin America are the various regions the company operates in. Nufarm Limited has recently revised FY18 guidance and expects to achieve its underlying earnings before interest and tax (EBIT) growth of around 5% above FY17’s underlying EBIT of $302.3 Mn. This is slightly down on the previous guidance for a rise in EBIT of 5% to 10%. Average net working capital to sales is to remain in between 37% to 38% as per the expectations. To maintain its Glyphosate registrations, the company will continue to work with regulatory authorities around the globe as the group has highlighted about a Brazilian ruling that indicates for suspension of existing registrations and a case filed in relation to Monsanto’s glyphosate based products alleged for cancer causing properties. While the group states that the issues will not impact its business, the stock has come under pressure as investors are now showing some concerns. The Nufarm’s stock is trading at a current market price of $6.55 with a daily price change of -$0.990 points or -13.13% as at August 13, 2018, and has seen a performance change of -13.25% over the past 12 months. We give an “Expensive” recommendation at the current price.

News Corporation (ASX: NWS)

Volatile Environment: News Corporation (ASX: NWS) is under the consumer discretionary sector, into digital real estate and education services, integrated marketing services, related media and information services, global newspaper and book publishing, sports programming and pay-tv distribution in Australia. Related to the Foxtel and Fox Sports, News Corp reported a full year loss of US$ 1.4 billion, primarily due to the US$1 billion no cash write down previously booked. Following the merger of Foxtel and Fox Sports, News Corp added a subscription video services segment where the company now owns 65% of the combined business. Due to lower Foxtel subscription, advertising revenues were flat over the last 12 months on a pro forma basis. Primarily because of streaming service Foxtel Now, the total number of Foxtel subscribers grew over the year to 2.8 billion. If the company does not want to miss out on a free to air television station, then it must be the next business to move. The News Corp stock is trading at a current market price of $19.050 with a daily price change of -1.950 points or -9.286% as at August 13, 2018 and has seen a performance change of 14.13% over the past 12 months. Given the shortcomings, we maintain our “Expensive” recommendation at the current price.

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