5 Small-cap Stocks – RFF, IDX, CYP, VHT and LPI

Rural Funds Group

RFF Details
 
Reaffirmed FY18 AFFO and distribution forecasts:Up 4.2% on March 14, 2018, Rural Funds Group (ASX: RFF) is gaining some traction lately with rise in positive sentiments. The group has delivered 22% rise in adjusted funds from operations (AFFO) to $15.4m in 1H 2018 driven by the acquisition of three adjoining cattle properties in northern Queensland totaling 390,600 ha, referred to as Natal. Further, it is expected that AFFO will be higher in the second half of FY18 after the completion of Natal acquisition in December 2017 and owing to revenue from the sale of the annual allocation attaching to high security water rights held by RFF.
 

1H FY 18 Financial Performance (Source: Company Reports)
 
Moreover, RFF has reaffirmed FY18 AFFO and distribution forecasts of 12.7 cents per unit (cpu) and 10.03 cpu, respectively. The company expects FY19 distributions to total 10.43 cpu, which is a 4% increase on FY18. On the other hand, RFF stock has fallen 5.26% in three months as on March 13, 2018 and trades at a low P/E. We give a “Hold” recommendation on the stock at the current price of $2.25
 

RFF Daily Chart (Source: Thomson Reuters)
 

Integral Diagnostics Limited

IDX Details
 
Capitol’s Takeover Bid to lapse: Integral Diagnostics Ltd.’s (ASX: IDX) stock rose 2.4% on March 14, 2018 after the company rejected Capitol Health’s deficient Offer and the unsolicited hostile takeover bid of Capitol Health for IDX is said to lapse now. Capitol had said that they are not increasing its takeover offer for all of the issued shares in IDX and had declared their Offer being the best and final. Moreover, Capitol and IDX were unable to reach an agreement on governance for the merged group and therefore the discussions failed to progress. Meanwhile, IDX stock has fallen 4.57% in three months as on March 13, 2018, and is trading at a slightly high P/E. As a result, we give an “Expensive” recommendation on the stock at the current price of $2.14
 

IDX Daily Chart (Source: Thomson Reuters)
 

Cynata Therapeutics Ltd

CYP Details
 
Excellent Cohort A Data from Final Primary Evaluation Period in Cynata GvHD Phase 1 Clinical Trial: Stem cell company, Cynata Therapeutics Ltd.’s (ASX: CYP) stock has risen 111.67% in three months as on March 13, 2018. The company has received Excellent Cohort A Data from Final Primary Evaluation Period in Cynata GvHD Phase 1 Clinical Trial meant for the treatment of steroid-resistant graft versus host disease (GvHD). The results provided an indication of the efficacy of the MSCs (mesenchymal stem cell) produced by CYP’s unique scalable Cymerus platform. No other company in the world has got the capability to produce MSCs at an equivalent commercial scale without requiring multiple donors. Moreover, in the next step, in Cohort B, eight participants have been flagged to receive two infusions of CYP-001 at a dose of two million cells per kilogram of bodyweight, up to a maximum of 200 million cells per infusion. The enrolment of participants into Cohort B is progressing as seven clinical sites in the UK and Australia are open for enrolment. Based on the stock trading at a high level, we give a “Hold” recommendation at the current price of $1.265
 

CYP Daily Chart (Source: Thomson Reuters)
 

Volpara Health Technologies Ltd

VHT Details
 
Commencement of a major trial to implement VolparaDensity software and risk-based screening:Volpara Health Technologies Ltd (ASX: VHT) has announced about the commencement of a major trial to implement VolparaDensity software and risk-based screening into the NHS Breast Screening Programme in England. This implementation trial is part of the PROCAS 2 Programme Grant (Providing breast cancer risk information as part of national breast cancer screening programme). The implementation trial will take place in Greater Manchester, East Cheshire and East Lancashire regions. The grant will be run from the Manchester University NHS Foundation Trust (MFT) from funding by the NIHR, that aims to improve the health and economy of the UK. Moreover, the trial will run for two years including an initial consultation period. Additionally, VHT was selected after its use in the PROCAS 1 study, which recruited participants over a 66-month period from the Greater Manchester Breast Screening Programme. As a result, VHT stock has risen 13.01% in three months as on March 13, 2018. However, the stock looks “Expensive” at the current price of $0.685, and we will review it at a later date.
 

VHT Daily Chart (Source: Thomson Reuters)
 

Lithium Power International Limited

 
LPI Details
 
Maricunga Lithium Brine Project awarded a key regulatory export licence:Lithium Power International Ltd.’s (ASX: LPI) stock surged 14.7% on March 14, 2018 after the company’s 50% owned Chilean joint venture company Minera Salar Blanco (MSB), was awarded a key regulatory export licence by the Chilean Nuclear Energy Commission (CCHEN) for a period of 30 years. The licence is for the production, marketing and export of lithium products from Chile that are extracted from the Maricunga salar. The joint venture is responsible for developing the Maricunga Lithium Brine Project. Moreover, the approval is for the initial extraction quota of 88,885 metric tonnes of lithium metal contained in brine or 472,868 tonnes of lithium carbonate equivalent (LCE). However, the CCHEN can increase the approved extraction quota after MSB advances the deep drilling exploration program scheduled for 2018. Further, the extraction quota may also be increased due to the improvements in efficiencies at the production facilities. On the other hand, after four years of successful Maricunga project development (including the recent JORC and NI 43-101 reports and the Preliminary Economic Assessment (PEA)), the company is progressing well on the next step to submit its Environmental Impact Assessment (EIA) to the authorities. The group’s half year result for period ended December 31, 2017, showed better interest revenue from continuing operations while loss after income tax from continuing operations had widened. Accordingly, LPI stock has fallen 26.47% in three months as on March 13, 2018. Based on the foregoing, it might be better to wait for more positives in view of the volatile lithium sector landscape. We give an “Expensive” recommendation on the stock at the current price of $0.43
 

LPI Daily Chart (Source: Thomson Reuters)

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 do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.