The a2 Milk Company Ltd (ASX: A2M)

Increasing market share: The a2 Milk Company gained a lot of traction in 2017 with over 270% stock price rise this year to date (as at December 22, 2017). Given the momentum and market cap movement (over $5.4 billion), the stock has been added to S&P/ASX 100 Index. The group is gaining a good pie of the market share in the Chinese Infant Formula market (tipped at $15 billion). With broadening of product portfolio, diversification into new growth markets of China, UK and USA, and strong fundamental performance supported by FY17 revenue growth of 56% and 74% increase in cash on hand while expenses are also mounting up, the stock might continue to perform well in 2018. At the current market price, A2M is trading at a higher level. However, the stock has swung back about 5.5% in last one month and any significant dip can be evaluated for an investment entry opportunity.
 

Year-wise Performance (Source: Company Reports)
 

Kidman Resources Ltd (ASX: KDR)

Leveraging strategic partnership: Lithium player, Kidman Resources has demonstrated a 200% year to date stock price rise and has been working on its Earl Grey lithium deposit at the Mt Holland JV project with the global producer of battery grade lithium carbonate company, SQM (Sociedad Química y Minera de Chile S.A.). SQM is expected to become a significant marketing agent for Kidman and the partnership is expected to reduce the burden on KDR to look for other players with regards to offtake agreements. KDR’s opportunity on an integrated refinery model now looks appealing with better margins in comparison to a stand-alone spodumene concentrate operation. Given the electric vehicles industry trends, KDR seems to have developed an edge. Support from the government will add to the streamlining of the project’s approvals while the group’s refinery location already falls under the government precinct. KDR will soon provide more insights on the feasibility study into the mine and had reported high-grade drilling results at Mt Holland in November. The results have demonstrated strong pegmatite zones which are expected to help KDR upgrade its resources early next year. While prospects look good, the volatility remains high at this point, and investors can keep an eye on further developments for an opportunity for a punt.
 

Earl Grey Lithium Deposit Drilling (Source: Company Reports)
 

Updater Inc (ASX: UPD)

Increased service footprint: Almost up 222% this year to date, the relocation services provider Updater Inc seems to be on a correction mode lately. The group has set new national market penetration goal of 35%. UPD also reported an encouraging outcome of the latest PayTV/Internet pilot program with added value to PayTV and internet partners and users looking to purchase the services on relocation. The users in treated group purchased recommended PayTV Product at a 224% higher rate than control group, indicating a lift in influencing user decisions. The group is aiming for an active selling in 5 Live verticals and improved paid programs for 2018. UPD’s first-half revenue of $170,723 was up 68% over previous corresponding period. The group continues to trade at higher levels and will be worth a watch in 2018.

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.