Vita Group Ltd

VTG Details
·         Discussions with Telstra on commercial terms: Vita Group Ltd (ASX: VTG) witnessed a stock price crash of 30.5% on May 11, 2017 as the group provided a trading update and information about commercial discussions with Telstra. On one hand, the group still expects to deliver a record EBITDA result in FY17 within an estimated range of $63m-$66m (against underlying EBITDA of $62.0m in FY16); while on the other hand, VTG is in discussion with Telstra (that creates geographic clusters for store ownership model with Vita owning a sizeable segment of the Telstra store network) over future commercial terms as Telstra is reported to organize its company owned and licensed stores. Vita is positioned as Telstra’s only Master Licensee and expects to retain a sizeable portion of the network. VTG also aims to work with Telstra for managing challenges related to competitive market mobility and nbn roll-out.

·         Recommendation: As of now, there is some uncertainty prevailing around the terms to be formalised with Telstra. VTG also expects its second half to witness impacts from some remuneration reductions that took effect between December and February while addition of new Telstra stores in March and April will offset the headwinds to some extent. We maintain a “Hold” on the stock at the current price of $ 1.55

Myer Holdings Ltd

MYR Details
·         Weak comparable store sales: Myer Holdings Ltd (ASX: MYR) stock lost over 3.5% on May 11, 2017 post the release of weak third quarter sales update. The group’s total year to date (YTD) sales fell 1.3% to $2,438 million while losing 0.3% on a comparable store basis. Overall, third quarter sales lost 3.3% to $653.0 million, and fell 2.0% on a comparable store basis. Sass & bide’s performance continued to face pressure, with $1.5 million of Myer’s shortfall in Q3 total sales being attributed to sass & bide.

·         Recommendation:The overall industry sentiment is also weak with Australia recently reporting a weak Retail sales data and erupting headwinds at the back of Amazon’s entry. Further, the drag is buoyed by no positive news for the retailers with regards to the latest federal budget. We maintain an “Expensive” recommendation on the stock at the current price of $ 0.98

Fortescue Metals Group Ltd

FMG Details
·         Unsecured notes offering:Fortescue Metals Group Ltd (ASX: FMG) stock lost over 5% on May 11, 2017 impacted by volatile iron ore prices. This was partly owing to a speculation that China may limit the output of steel producers as a move to keep a check against polluting industries. On the other hand, the group offered US$1,500 million of senior unsecured notes for refinancing of the outstanding US$976 million 2019 Senior Secured Credit Facility and US$478 million 2022 Senior Unsecured Notes.

·         Recommendation:The volatile iron ore prices would continue to impact the stock sentiment going forward which is already on bearish trend, while we maintain an “Expensive” recommendation at the current price of $ 4.87

BT Investment Management Ltd

BTT Details
·         Weakness in performance: BT Investment Management Ltd (ASX: BTT) stock lost over 5.8% on May 11, 2017 post the release of interim results. The group reported net inflows of $4.6 billion for the period for the six months to 31 March 2017. The group’s Average FUM surged 10% to $86.3 billion against prior corresponding period. On the other hand, BTT witnessed lower performance fees and adverse currency movements. Cash earnings per share (Cash EPS) fell 2% to 28.4 cents during the period.

·         Recommendation:We maintain an “Expensive” recommendation on the stock at the current price of $ 12.23


Equities FUM (Source: Company Reports)

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 currently hold positions in:  BHP, BKY, KCN, PDN, and RIO. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.