Stocks’ Details

Milton Corporation limited

 
Growth in NTA: Milton Corporation Limited (ASX: MLT) has recently disclosed to ASX that one of its Director Mr. B.J. O’DEA had a direct and indirect interest in the Company, acquired 2,141 Ordinary shares via participation in the DRP for a consideration of $9,695 as on 5 March 2019.  Hence, number of securities held by him after the change is 252,141 securities. The Net Tangible Asset per share for the company as at 28 February 2019 was $4.71 (pre-tax). As per the report on half-year ended 31 December 2018, the company reported an increase of 6.2% in net profit after tax to reach at $70.7 million. The result includes $1.7 million of special dividends. Also, the Underlying operating profit grew by 4.6% to come in at $69.0 million. This was due to an increase in ordinary dividend income from the company’s investment portfolio.
 
What to Expect From MLT: The management has confidence that the company has the resources to invest as & when the opportunities arise, given its balance sheet strength and cash position. As a long-term investor, the company can take advantage of market volatility going forth.
 

MLT’s Dividend History (Source: Company Reports)
 
The company is completely debt free and its net margins have improved 0.1% YoY to 95.2% at the end of December 2018.

In the meantime, the share price of the company has risen 5.14% in the past three months. Hence, considering the improvement in the net margins and debt-free status along with the decent business outlook, we maintain our “Hold” recommendation on the stock at the current market price of $4.500 per share.
 

WAM Global Limited

 
Stabilizing Global Environment to support WGB:  WAM Global Limited (ASX: WGB) had lately reported that one of the Directors Mr Geoffrey Wilson has acquired 10,286 Ordinary Shares as on 14 March 2019 for a consideration of $19,791.72.  Hence the No. of securities held after change is 3,234,753 Ordinary Shares.


WGB’s performance update (Source: Company Reports)
 
As regards the performance of the fund for the interim period ended 31 December 2018, the company’s investment portfolio decreased by 9%. This fall was mainly on the back of increased volatility witnessed in the global equities.
 
What to Expect From WGB: The management was extremely bearish at the end of 2018 due to signs that the US federal reserve is anticipated to raise the interest rates in the Year 2019 & the tightening would continue. However, the holding of rates by the federal reserve & the increase in the stimulus provided by the Chinese president impacting global growth has somewhat provided the much-needed support to the global markets. The management is confident that the portfolio comprises of quality names and the same will perform moving forward.

Meanwhile, the share price of the company has fallen 10.50% in the past six months and is trading slightly below the average of 52 weeks high and low level of ~$2.03. Hence, considering the improving global equity market & quality of its portfolio, we give a “Buy” recommendation on the stock at the current market price of $1.955 per share.
 

Antipodes Global Investment Company Ltd

 
Portfolio exhibiting defensive bias:Antipodes Global Investment Company Ltd(ASX: APL) recently released its fund update as at 28 February 2019. As per the same for the month ended 28 February 2019, the Company performance was 1.2% against the benchmark return of 5.2%. The Board has resolved to pay an interim dividend of 2.0 cents per share (50% franked). The dividend will be paid to APL shareholders on 22 March 2019 and had a record date of 8 March 2019.
 
As regards the results for the half year ended 31 December 2018, the company recorded an operating loss for the half-year of $19.3m, reflecting weaker global markets during the period. Despite the challenging conditions, the investment portfolio (decrease of 3.1%) outperformed the benchmark MSCI All Country World Net Index in AUD (decrease of 4.5%) by +1.4%. The most significant contributors to the performance were the Gold exposures which benefited from the flight to safer assets.
 
The NTA before tax decreased 9.3% when adjusted for dividends paid, predominantly impacted by the large option conversion during the period and resultant dilution to NTA.
 

APL’s Portfolio Performance as at 28 February 2019 (Source: Company Reports)
 
What to Expect From APL: As regards the outlook, while the management sees relative value appearing in cyclicals, particularly ex-US, the management doesn’t believe that it is the time to be too aggressive on this exposure, especially considering the global growth cycle is yet to mature and the early nature of the Federal Reserve’s QT program. In the meantime, the share price of the company has fallen 9.65% in the past six months and is trading closer to the 52 weeks low levels.

Although, there has been some signs of improvement, the global markets might be volatile moving forward and, thus, we maintain our “Speculative Buy” recommendation on the stock at the current market price of $1.040 per share (up 0.971% on March 19, 2019).
 

Argo Global Listed Infrastructure Limited

 
Rise in Weekly NTA:Argo Global Listed InfrastructureLimited (ASX: ALI) had lately reported that weekly estimate of NTA per share at the close of business on Friday 15 March 2019was $2.43. It had lately reported that it will be paying fully franked ordinary dividend of AUD 0.025 to its shareholders, the record date of which was March 4, 2019 and the payment date shall be March 22, 2019.
 

ALI’s financial results (Source: Company Reports)
 
As per the interim report on half-year ended 31 December 2018,AGLI’s (or Argo Global Listed Infrastructure Limited) portfolio outperformed its infrastructure sector benchmark, to return +2.9% over the half-year, exceeding the MSCI World Index (A$) and the S&P/ASX 200 Accumulation Index by +7.5% and +9.7% respectively. This was achieved on the back of considerable resilience witnessed in global listed infrastructure companies, outperforming broader equity markets as investors repositioned their portfolios away from riskier investments and towards more defensive assets.
 
What to Expect From ALI: As regards the outlook for year 2019, AGLI remains focused on ensuring the Company’s share price reflects the underlying value of the shares and the management will continue to implement a range of initiatives aimed at achieving this objective, including operating an on-market buy-back and promoting awareness and understanding of the benefits of investing in AGLI through increased marketing and communications.
 
Meanwhile, the share price of the company has risen by 21.87% in the past one year and is trading closer to the 52-week higher level. As a result, it can be said that all the positives have been priced in at the current stock prices. Hence, we give an “Expensive” recommendation on the stock at the current market price of $2.180 per share (up 4.306% on March 19, 2019).


 
Stock Price Comparative Chart (Source: Thomson Reuters)    

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