Nanosonics Ltd
US FDA clearance for the latest generation of trophon2:Nanosonics Ltd.’s (ASX: NAN) stock surged 8.4% on April 27, 2018 after the company received US FDA clearance (FDA 510(k)) for the second generation of trophon platform device, trophon2. NAN projects the commercial release of the new trophon2 product in the USA to take place during the first quarter of the FY19. Moreover, trophon2 is expected to deliver AcuTrace Plus digital connectivity functionality which enables the trophon2 device to be seamlessly integrated with hospital IT systems for a streamlined, paperless and completely integrated reprocessing solution. Further, this new software platform also future readies the device by allowing new functionality to be implemented through firmware upgrades. In addition, the trophon2 device includes new functionality designed to meet specific European market requirements, that includes the ability to monitor in real time and report on all the process parameters (dosage, temperature, time) for each disinfection cycle. Meanwhile, NAN stock has fallen 21.80% in three months as on April 26, 2018 with some short selling activities. Lately, director Steven Andrew Sargent acquired 20,000 Ordinary shares, fully paid, leading to a total of indirect interest entailing 107,000 ordinary shares, fully paid.
It seems that the month of April is bringing good news for the group as earlier this month, Nanosonics advised that the German Society of Ultrasound in Medicine (DEGUM) has published comprehensive recommendations for infection prevention in ultrasound and endoscopic ultrasound. The guidelines state that all semi-critical ultrasound probes need to undergo disinfection with disinfectants and NAN’s trophon® EPR device has been shown to meet all these requirements. This represents a good opportunity for Trophon and the group is set to benefit from the growth in its direct sales and service infrastructure in Germany. Based on the foregoing, we give a “Speculative Buy” recommendation on the stock at the current price of $ 2.45.
iSelect Ltd (ASX: ISU)
Changes in interest in the group: Up 8.5% on April 27, 2018, ISU seems to be tracking back from the downfall of 53% as seen in last five days post the release of a soft trading update and resignation of the company’s managing director and CEO, Scott Wilson. iSelect’s revenues grew by 7% to $83.3 million for the half year ended 31 December 2017 (H1 FY18) at the back of business investment with a 23% increase in underlying EBIT to $3.5 million. The group however downgraded its FY18 forecast EBIT to a range of $8 to $12 million from the previous guidance of $26 to $29 million with poor trading noted for last two weeks of March and first three weeks of April. Nonetheless, the release of the update that director, Chris Knoblanche has acquired 100,000 Ordinary Shares under indirect interest through an on-market purchase adding to previously held 243,091 Ordinary Shares, seems to be helping ISU recover a bit. Meanwhile, Commonwealth Bank of Australia became a substantial holder with 6.08% interest as at April 23, 2018 while BT Investment Management Limited (BTT) ceased to be the holder. On the other hand, NovaPort Capital has reduced its interest in the group from 6.5% to 5.46%. We have a “Hold” on the stock at the current price of $ 0.51.
Domino's Pizza Enterprises Ltd (ASX: DMP)
Upward movement in stock price: Up 7.9% on April 27, 2018, Domino’ seem to be having gaining traction with some positive sentiments. However, the stock has been as one of the most-short sold stocks recently and was down 15.6% in last three months. Meanwhile, Domino’s Pizza Enterprises announced that its Australian employees will remain on the Fast Food Industry Award (Modern Award), rather than continue to pursue approval of a new Enterprise Bargaining Agreement (EBA). Primarily, the Modern Award has provided certainty and stability to team members and franchisees with labour costs within forecasting; and includes paying employees weekend and public holiday penalty rates. The group otherwise reaffirmed NPAT guidance in the region of +20% for the full year based on menu innovation and operational improvements, and growth in sales in all markets. For half year, its network sales jumped up by 7.1% (+$82.8m) on the prior corresponding period (pcp) to $1,248.9m with over 4.0% of Same Store Sales (SSS). After normalising for share buy-back costs, NPAT was 7.0% up on pcp. While the stock looks to be an interesting watch now, the trading level seems to be high; and thus, we give an “Expensive” recommendation at the current price of $ 43.87.
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