3 Stocks slipping on ASX – ALL, AJM and DRO

ARISTOCRAT LEISURE LIMITED (ASX: ALL)

Tugged in a legal dispute: Heavy sell-off on Wall Street led many ASX stocks plunge a bit lately. Among these, was Aristocrat Leisure Limited (ASX: ALL) that slipped by 2.7% on April 03, 2018. The group’s former director, David Banks’ interests were updated post he ceased to be the director of the group as at March 31, 2018. While Commonwealth Bank of Australia ceased to be a substantial holder of the group, the group also seems to be coming under the sell radar as an appeals court in the United States has reversed a lower court’s ruling and re-ignited the case under which Big Fish Casino has been considered to constitute illegal gambling under Washington state law. The decision hinges on the finding that Big Fish Casino’s virtual chips are a ‘thing of value’. Last year, the gambling machine maker bought the social casino games maker, Big Fish for $990 million. We keep an eye on the stock and avoid any investment at the current price of $23.41
 

ALTURA MINING LTD (ASX: AJM)

First spodumene sales to commence in Q2 2018:Altura Mining Ltd.’s (ASX: AJM) stock fell 2.4% on April 03, 2018 with the persisting volatility in the sector while overall mining stocks traded more or less decently. Meanwhile, AJM has confirmed the speculation of a potential control transaction, and is in discussions with Shaanxi J&R Optimum Energy Co., Ltd regarding it. However, the content of the discussions has been confidential, incomplete, indicative and non-binding. Further, the proposal would be subject to a number of conditions including regulatory approvals in China and Australia and there is no certainty that any transaction will proceed. On the other hand, the commissioning at the Altura Lithium Project will continue over the next months and the first spodumene sale is expected to commence in Q2 2018. The group has also secured offtake for 100% of Stage 1 Production of 220,000 tpa at 6% Li₂O via Lionergy and OptimumNano. As a result, AJM stock has risen 16.67% in one month as on March 29, 2018. Based on the foregoing, we give a “Hold” recommendation on the stock at the current price of $0.41
 

Altura Lithium Project- Stage 1 (Source: Company Reports)
 

DRONESHIELD LTD (ASX: DRO)

Raising of Funds: DroneShield Ltd.’s (ASX: DRO) stock plunged 15.22% on April 03, 2018 with the prevailing negative sentiments on the stock while there are news doing the rounds that US Marines have been testing drone-killing new weaponry to disable or destroy unarmed aerial vehicles. On the other hand, Long Hill Capital and Bergen have reduced their interests from 39.13% to 36.11%, as on March 29, 2018. Meanwhile, DRO was reinstated to official quotation on March 23, 2018, as per the listing rule 17.7, after the company raised $2.55 million through a placement of 12.17 million ordinary fully paid shares at an issue price of $0.21 per share. The funds raised, will be used for further development and integration of detection and countermeasure technologies, consistently with end-user requirements. Further, the company will use the fund for the expansion of the company’s sales and marketing efforts globally and for general working capital. Meanwhile, DRO stock has fallen 11.54% in one month as on March 29, 2018. As of now, we give a “Hold” recommendation on the stock at the current price of $0.195
 

High Profile Orders (Source: Company Reports)

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