Stocks’ Details

Volpara Health Technologies Limited

3Q19 cash flow statement to be released on 29 January 2019:Volpara Health Technologies Limited (ASX: VHT) is a health care company headquartered in Wellington, New Zealand. It provides breast imaging analytics and analysis products for the early detection of breast cancer. The company will be releasing its 3Q19 quarterly cash flow statement on 29 January 2019 with an expected cash outflow NZ$4.9 million.


1H19 financial highlights (Source: Company Reports)

Over the past five years,the margins of the company have been fluctuating and are reported negative. Only, the Gross margin was reported positive but has declined over the years. It reported gross margin of 71.1% in 1H19 as compared to 78.4% in 1H18. It reported a higher buyback yield of 90.8% as compared to the industry median of 14.5%indicatingthe stock to be attractively priced.

During the past six months, the stock has generated a positive yield of 60.13% and is trading close to a higher level. On the technical analysis front, the stock price is currently trading above the Simple Moving Average line of the Bollinger band. With the upcoming quarterly cash flow resultsand higher than industry buyback yield, we have a ‘wait and watch’ view on the stock at the current market price of $1.240 and we suggest to investors that they should wait for a few more trading sessions to get the better entry levels.
 

Bionomics Limited

BNC210 Phase 2 Agitation trial planned for first quarter of CY2019:Bionomics Limited (ASX: BNO), domiciled in Australia, is a biopharma company. It provides better treatments for central nervous system disorders such as depression, anxiety, etc., cancer, and Alzheimer's disease. The company has planned to run a trial of BNC210 Phase 2 Agitation in the Elderly people in the first quarter of CY2019.


FY18 Financial highlights (Source: Company Reports)

Over the past five years,the margins of the company have been fluctuating and are reported negative. Current ratio and quick ratio came in at 2.67x and 2.70x, respectively in FY18.

During the past six months, the stock has generated a negative yield of 76.04% and is currently trading at the price of level $0.120 which is near to its support level of $0.105. The Relative Strength Index is seen in a positive position, and the price is currently trading above the lower band of the Bollinger band. There was a major dip in the price in October following the results of PTSD trial and the stock is expected to fill that gap soon.

With the trial of BNC210 Phase 2 Agitation planned in 1Q of CY2019, price trading at lower levels, and bullish indication through charts, we have a ‘Speculative buy’ stance on the stock at the current market price of $0.120 (up 4.348% on 24 January 2019).
 
 

Nanosonics Limited

Focussing on new product development:Nanosonics Limited (ASX: NAN) is a healthcare company domiciled in New South Wales, Australia. The company provides devices that pave the way for the safety of patients, clinics, their staff. The company expects operating expense in FY19 to be around $53 million with a majority of R&D expense of $13 million directed towards new product development.


Past 5-Year trend (Source: Company Reports)

Over the past five years,the margins of the company have improved but are still below the industry medians. During FY18, the company reported EBITDA and Net margin of 7.1% and 9.5% respectively as compared to the industry median of 27.6% and 18.5% respectively. Similarly, the returns to its shareholders have improved but are still less than its peers as its ROE of 6.3% was below the industry median of 26.7% in FY18.

Over the past one month, the stock has generated a positive yield of 14.96%. Today, the stock was up by 2.54% as compared to the previous close, currently trading at the price of level $3.230. The Relative Strength Index is seen in negative territory, and the price is currently trading on the upper band of the Bollinger band. By looking at its improving margins along with the focus on new product development, we, therefore, maintain our “Hold” recommendation on the stock at the current market price of $3.230.
 

OncoSil Medical Limited

Global pancreatic clinical studyplanned for CY2019:OncoSil Medical Limited (ASX OSL) is a medical device company domiciled in Sydney, Australia focussing on interventional oncology in the pancreas. The company plans for the global pancreatic clinical study program for CY2019.


FY18 Financial highlights (Source: Company Reports)

Over the past five years,the margins of the company have been fluctuating and are reported negative.The top line of the company has improved over the past 5 years at a CAGR of 68.46%. The company enjoys virtual debt-free status with the current ratio of 11.46x as on 30 June 2018.

The company has ~630.71 million shares outstanding with the market cap of circa $110.37 million and a beta of 1.22x (5-Years, Monthly). During the past three months, the stock has generated a positive yield of 2.94%. Today, the stock was down by 2.857% as compared to the previous close, currently trading at the price of level $0.170. The Relative Strength Index is seen in a positive direction, and the price is currently trading below the Simple Moving Average line of the Bollinger band. With the improving top line, a debt-free status of the company, and the bullish indication through charts, we, therefore, have a“Speculative buy” recommendation on the stock at the current market price of $0.170.
 

Stock Price Comparative Chart (Source: Thomson Reuters)  
 

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