Slater & Gordon Ltd

SGH Details
·         Claim against Watchstone: Slater & Gordon Ltd (ASX: SGH) stock rallied about 19.3% on May 12, 2017 as the group announced about its intention to file a claim against Watchstone Group Plc in the High Court of England and Wales for about 600 million pounds. The claim is said to be based upon serious allegations against Watchstone and its then senior management, including fraud, with regards to the purchase by S&G of Watchstone’s Professional Service Division in 2015. Watchstone has recently announced that it intends to divest itself of its remaining assets. A few days earlier, SGH had executed an agreement with its New Senior Lenders in relation to the provision of a new $40m working capital facility.

·         Recommendation: We maintain a “Hold” on the stock at the current price of $ 0.105

Pilbara Minerals Ltd

PLS Details
·         Positive results from flotation test work and pilot program: Pilbara Minerals Ltd (ASX: PLS) stock surged over 4.9% on May 12, 2017 after the release of the update on solid flotation test work and pilot program results, which reiterate the Pilgangoora Lithium-Tantalum Project potential. The metallurgical test work and flotation pilot program results further enhanced the operability and the cost of processing at Pilgangoora is now anticipated to be lower. The group expects savings in excess of ~A$2.50/t processed (>10% process cost savings) identified in the flotation circuit through reagent optimization, larger grind size, yield and overall recovery (in-float) improvements. Technical grade concentrate (7.22% Lithia, 0.14% Fe₂O₃) were easily delivered via the first run in the pilot flotation circuit at high recovery rates (+75%). Thus, PLS continues to move closer to success in optimizing process design and operating parameters, and to evolve as a low-cost supplier of quality lithium materials.

·         Recommendation:The stock is trading at subdued levels after falling over 19.8% in the last three months (as of May 11, 2017). We maintain a “Buy” on PLS stock at the current price of $ 0.42 

Technical grades (Source: Company Reports) 

Alumina Ltd

AWC Details
·         Improving industry metrics: Alumina Ltd (ASX: AWC) stock price rallied 4.8% on May 12, 2017 driven by the rally in the commodity prices and robust demand falling in place. The Alumina industry is improving and now has a balanced outlook. While there is cost push in medium term but China’s plan to curb production is expected to drive the prices. 

Growing demand (Source: Company Reports)

·         Recommendation: AWC stock has a decent dividend yield and is trading at slightly high levels. We maintain a “Hold” recommendation on the stock at the current price of $ 1.85

Jumbo Interactive Ltd

JIN Details
·         Extended commercial relationship with Tatts Group: Jumbo Interactive Ltd (ASX: JIN) stock rose over 4.96% on May 12, 2017 as Tatts Group expanded their long commercial relationship for 5-years. Tatts even subscribed for a 15% stake in Jumbo by buying 6,609,686 newly issued fully paid ordinary shares at $2.37 per share. Tatts also granted a 12-month option to acquire a further 3,474,492 ordinary shares in Jumbo at a $2.37 strike price. Lottery sales at New South Wales, Victoria, South Australia, Northern Territory and Fiji are now extended for five years with more provisions to continue beyond 2022.

·         Recommendation:JIN stock delivered huge gains of over 69% in the last six months (as of May 11, 2017) and are at higher levels. We give an “Expensive” recommendation on the stock at the current price of $ 2.75

Bellamy's Australia Ltd

BAL Details
·         Ongoing bullish momentum: Bellamy's Australia Ltd (ASX: BAL) stock slightly rose over 0.2% on May 12, 2017 leading to a total rally of over 25.7% in the last three months (as at May 11, 2017). Meanwhile, Dimitri Kiriacoulacos resigned as the company secretary effective May 12, 2017. The stock rebound on a bullish track after the update regarding non-impact of CFDA registration on the ‘Australian label’ product sold through Australian retail, the Daigou and China Cross-border Ecommerce.The group is confident that they would achieve CFDA registration and would continue to review multiple alternative and accredited canning facilities.


Future strategy or steps (Source: Company reports)

·         Recommendation:We maintain a “Hold” recommendation on this stock at the current price of $ 6.02
 

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