Stocks’ Details

Spheria Emerging Companies Limited

 
Payment of Ordinary Dividend: Spheria Emerging Companies Limited (ASX: SEC) had lately reported that it will be paying fully franked ordinary dividend of AUD 0.02 to its shareholders.The record date happens to be March 6, 2019 and the payment date shall be March 20, 2019. The company also stated that its Net Tangible Asset backing per share as at 22 February 2019 was $2.017 (pre-tax).

SEC’s Dividend details (Source: Company Reports)
 
As per the report on the half-year ended 31 December 2018, the company reported an operating loss before tax of $14,783,000 vis-à-vis an operating profit before tax of $4,242,000 in the pcp. The result for the half-year was largely attributed to unrealised revaluation losses on the Company’s investments during the period. Moreover, SEC has also released its decent portfolio performance under weaker market condition wherein SEC Mandate performance delivered a -11.0% return in the past six months (as at 31 December 2018) and was up by 1.8% as compared to S&P/ASX Small Ordinaries Accumulation Index return of -12.7%.
 
What to Expect From SEC: The management expects further market volatility going forth. However, this is expected to provide opportunities as many of the currently unfavoured companies have strong fundamentals and now have appealing valuations.
 
Meanwhile, the stock price has fallen by 12.34% in the past six months as at 04 March 2019 and is trading close to a 52-week lower level. However, there are expectations that the volatility in the market will provide an opportunity to accumulate the fundamentally strong stocks. Hence, we have a “Speculative Buy” recommendation on the stock at the current market price of $1.760 per share (up 1.149% on 05 March 2019).
 

Milton Corporation limited

               
Growth in NTA:Milton Corporation limited (ASX: MLT) had lately reported that the Net Tangible Asset per share for the company as at 28 February 2019 was $4.71 (pre-tax). It had lately reported that it will be paying fully franked ordinary dividend of AUD 0.09 to its shareholders, the record date of which was February 14, 2019 and the payment date is March 5, 2019.
 
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 consist of $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 believes 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 2.73% in the past three months as at March 04, 2019and is trading slightly below an average of 52-week lower and higher levels of $4.535. 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 (down 0.442% on 05 March 2019).
 

Magellan Global Trust

Constant Growth in Assets & Stable Returns: Magellan Global Trust (ASX: MGG) has recently reported its weekly NAV per unit of $1.6836as at 1 March 2019, an increase of 0.12% in NAV from $1.6816 as on February 22, 2019.
Through the latest interim results for the six months ended 31 December 2018, the company reported that the Fund had net assets of $1,650 million. During the half year, the fund purchased on-market and cancelled 81,612 Ordinary units, at a total cost of $128,602. The company’s indirect cost ratio (ICR) came in at 0.73% for the period (i.e. 6 months ended December 2018) which can be considered to be at decent levels. Since inception, MGG Investment Portfolio generated 12.1% returns per annum against the MSCI World Net Total Return Index returns of 7.7% p.a as at 31 January 2019.

Fund’s NAV & Earnings per unit (Source: Company Reports)
What to Expect From MGG: The group has a cautious outlook considering that the funds’ performance entirely depends upon the performance of the business it has invested in. As markets are subject to fluctuations, management feels that it is imprudent to provide a detailed outlook statement of expected results of operations. The company has exposure towards the technology stocks and the future performance is expected to be sensitive to performance of the broader technology sector. Meanwhile, the stock price has witnessed a rise of 7.59% in the span of one year.
Hence, considering the performance of the stock in the past one year and the expectations that the global macro-economic worries would settle down, we give a “Buy” recommendation on the stock at the current market price of $1.635 per share (up 0.307% on 05 March 2019).
 

MFF Capital Investments Limited

Release of Weekly NTA: MFF Capital Investments Limited (ASX: MFF) had stated that its approximate weekly NTA per share as at March 1, 2019, stood at $2.999 on the pre-tax basis, (cum 1.5 cent per share, fully franked interim dividend), (June 30, 2018: $2.762), and $2.509 on the post-tax basis. The company stated that its approximate monthly NTA per share as at February 28, 2019 stood at $2.977 pre-tax, ($2.762 pre-tax as at June 30, 2018) and $2.493 after providing for tax. The company stated that the portfolio activity has witnessed a rise somewhat in February from the low levels. The equity market prices and investorsentiment have witnessed a rise from December lows and the conditions have also improved in majority of debt and other readily tradeable markets.

Holdings as at February 28, 2019 (Source: Company Reports)

What to Expect From MFF: The company had stated that they have made investments in equities, with a focus upon equities of non-Australian domiciled companies and there are expectations that it would continue. The company stated that its portfolio holdings continue to have sustainable business advantages as well as opportunities for the profitable growth, and the company consider that they remain satisfactorily priced.

Stock Recommendation: On the monthly chart of MFF Capital Investments Limited, Exponential Moving Average or EMA has been used and default values were used for the purposes. After careful observation, it was noted that the stock price had crossed the EMA and had trended in the upward direction after the crossover which reflects bullishness. Also, in the time span of previous one month, the stock has delivered the return of 5.68%. Considering the above-mentioned factors, we maintain our “Hold” rating on the stock at the current market price of A$2.84 per share (up 1.792% on March 2019).


 
Stock Price Comparative Chart (Source: Thomson Reuters)  
 

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