Woolworths Limited

WOW details
·         Third quarter sales better than expected:Woolworths Limited (ASX: WOW) stock rose over 1.3% on May 02, 2017 as the group came out with decent third quarter sales of 2017. Australian Food sales enhanced 5.1% to $9.3 billion during the period while comparable sales surged 4.5% (Easter adjusted). The group’s new Customer-Led Rostering tool is live in all states which could match team hours to customer shopping times. The group is planning 49 Supermarket renewals during the second half of the fiscal year. Moreover, the Endeavour Drinks Group performance was decent even in the volatile market. Meanwhile, management revamped investors’ confidence by saying that their performance turnaround is still in early stages while they are focusing on several opportunities which would benefit their customers and shareholders. On the other hand, given their higher investment in major areas, cost price increases (particularly in meat and produce), their second half of 2017 performance might witness a financial impact.But their BIG W is a work in progress and its turnaround would be a multi-year journey while the group expects a loss before interest and tax of $115-135 million for the second half of 2017.

·         Recommendation: We maintain a “Buy” recommendation on the stock at the current price of $ 27.35
 

Third Quarter of 2017 Performance (Source: Company Reports)                         

Lendlease Group

LLC Details
·         Strong pipeline boosted the stock sentiment: Lendlease Group (ASX: LLC) stock rallied over 3.9% on May 02, 2017 given the positive prospects of the group. The group has $35 billion worth under urbanization pipeline and has 12 major urbanization projects across 8 Gateway cities. The group got more than $4 billion PPPs (Public Private Partnerships) in the last five years, and is leveraging the rising ageing population and has positioned itself well in the retirement living sector in Australia.

·         Recommendation: LLC stock rallied over 21.6% in the last six months (as of May 01, 2017). We give a “Hold” recommendation on the stock at the current price of $ 16.81 

Strong Pipeline (Source: Company Reports) 

Mayne Pharma Group Limited

MYX Details
·         Forecasting better margins: Mayne Pharma Group Limited (ASX: MYX) stock rose over 4.6% on May 02, 2017 as the group expects a better gross profit margin percentage on sales of the Teva portfolio while FY17 EBITDA would be in line with guidance. Moreover, the reduction in sales from the Teva portfolio would not have a major impact on overall FY17 EBITDA. But the pricing pressure would lead to a lower than expected sales of FY17 Teva portfolio against the forecast at the time of acquisition.

·         Recommendation: Despite a temporary rise in the stock, we believe investors need to be cautious given the risks. We maintain our “Expensive” recommendation on the stock at the current price of $ 1.26

Bellamy’s Australia Limited

BAL Details
·         Improving sentiments: Bellamy’s Australia Limited (ASX: BAL) stock rose over 11.8% on May 02, 2017 at the back of continued improvement in sentiments.Before this gain, the stock has moved up 28.3% in last one month, as at May 01, 2017.

·         Recommendation: We maintain our “Hold” recommendation on the stock at the current price of $ 6.04

RCG Corporation Limited

RCG Details
·         Resurgence post a heavy downfall: RCG Corporation Limited (ASX: RCG) stock rose over 15.7% on May 02, 2017 with improving sentiments, post the decline witnessed on May 01, 2017 (down 33% in last five days) at the back of soft market announcement. Meanwhile, Pengana Capital Ltd has acquired a 5% holding in the group.

·         Recommendation: Though we speculate a long-term opportunity but given certain level of volatility in the recent time, we maintain our “Hold” recommendation on the stock at the current price of $ 0.70

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 currently hold positions in:  BHP, BKY, KCN, PDN, and RIO. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.