Harvey Norman Holdings Limited

HVN Details
·         Weak retail sales data impacted the stock sentiment: Harvey Norman Holdings Limited (ASX: HVN) stock fell over 3.5% on May 09, 2017 impacted by the lower than expected retail sales data. In March 2017, Australian retail sales decreased 0.1% as per Australian Bureau of Statistics, as compared to the market expectations of a rise in 0.3%. Moreover, electrical and electronic goods retailing sales lost 0.4% hurting the players in this segment.

·         Recommendation: We have been bearish on the stock which lost over 12.3% in the last three months. We give an “Expensive” recommendation on the stock at the current price of $ 4.13

JB Hi-Fi Limited

JBH Details
·         Weak sector sentiment: JB Hi-Fi Limited (ASX: JBH) stock lost over 4.4% on May 09, 2017 following its peers, given the weak sector sentiment post the retail sales data. On the contrary, the group gave a positive outlook for FY17 and reported a decent March quarter performance. The comparable sales for the March FY17 quarter rose 8.2% while overall sales enhanced 10.8%. The Good Guys business increased 1.2% during the quarter while overall sales growth rose 2.6%. JBH reiterated their FY17 forecasts and sees sales to be circa $5.58 billion with The Good Guys contribution of $1.25 billion.

·         Recommendation: Given some headwinds including the ones emanating from Amazon’s entry, we maintain a “Hold” recommendation on the stock at the current price of – $ 23.98 

Positive forecasts (Source: Company reports) 

Commonwealth Bank of Australia         

CBA Details
·         Concerns over margins dragged the stock lower: Commonwealth Bank of Australia (ASX: CBA) stock lost over 3.8% on May 09, 2017 post their March 2017 quarter update. The group’s Net Interest Margin fell during the quarter given the better average liquids and competition effects. The group reported a cash earnings of over $2.4 billion in the quarter while the unaudited statutory net profit reached over $2.6 billion in the quarter. Deposit funding was at 67% and the LCR at 124%. Common Equity Tier 1 (CET1) capital ratio reached 9.6% on an APRA basis, which rose by 37 basis points since December 2016 post the impact of the 2017 interim dividend. But post dividend the dividend, their CET1 rose to 15.2%.

·         Recommendation: Looking at the trading levels, we maintain an “Expensive” recommendation on the stock at the current price of $ 82.02

Ardent Leisure Group

AAD Details
·         Decline in theme park visitation: Ardent Leisure Group (ASX: AAD) stock edged a little low by 0.95% on May 09, 2017. The group released its trading update and guidance. The group reported that its theme park visitation by declined 36.7% in the months of March and April and the unaudited revenues of $9.6 million were down 39% on the prior corresponding period. The result seemed to be impacted by adverse weather, Easter long weekend, school holiday trading period, and persistent volatility. AAD expects Theme Park division to report FY17 EBITDA loss of between $2 million to $4 million. On the other hand, the group’s Main Event segment delivered record Q3 FY17 revenue growth of 25.1%.

·         Recommendation:We maintain a “Hold” at the current price of $ 2.09

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