Stocks’ Details

WAM Research Limited (ASX: WAX)

Decent portfolio returns - WAM Research Limited is an Australia-based investment company that has delivered Performance returns of 18.1% p.a. since July 2010. The group makes investments in listed companies and has $239.8m of gross assets. The NTA after tax as on 31 May 2018 was recorded at 123.45c and while on 30 April 2018, the same was recorded at 121.54c. In the month as at May 31, 2018, the group outperformed the S&P/ASX All Ordinaries Accumulation Index by 1%. WAX operates with an investment objective of providing capital growth over the medium-to-long term and to deliver a stream of fully franked dividends, which is the key advantage. Since inception, WAM Research has paid 89.9 cents per share in fully franked dividends to shareholders. The Company has a dividend yield of 6.1 per cent. The parent group, Wilson Asset Management, has also planned to provide WAM Global shareholders the exposure to a high-quality portfolio of undervalued international growth companies using its proven investment process, which has delivered solid risk-adjusted returns for more than 20 years. The Board of the Company had authorised the allotment of shares following the Company’s oversubscribed $466 million initial public offering (IPO), the largest capital raising undertaken by Wilson Asset Management. This was driven due to the strong demand from existing investors that led to the offer exceeding the $330 million target. About 12,855 investors invested in the IPO that is more than 8,000 existing shareholders of Wilson Asset Management listed investment companies. Further, as the priority allocation was oversubscribed, so the investors who correctly applied and paid for shares will receive their full allocation.


Pre-Tax NTA Performance (Source: Company Reports)

WAX stock price has been edging low since the start of the year but rose by 2.7% in last one month.It is trading at $1.515 as on 27 June 2018. We give a “Speculative Buy” recommendation by looking at the investment portfolio performance and consistent returns.
 

Clime Capital Limited (ASX: CAM)

Improvement in the Portfolio Return while there is an increase in Debt - Clime Capital is an investment company and has a diverse portfolio of large caps, medium caps, small caps and overseas shares. It was worth noting that as on 31 May 2018, the gross value of the Company’s investment portfolio was approximately $106.0 million (pre-quarterly interest payable on convertible notes and after buyback for the month). Further, the gross asset figure net of accrued interest of $0.3 million was $105.7 million and now the Company will pay the interest on the convertible notes. The Group is buying-back about 43,142 more shares (as on 27 June 2018) from the market and before that it has already bought back 807,482 shares.


Gross Asset Allocation as on 31 May 2018 (Source: Company Reports)

The Clime Capital portfolio delivered a return (net of fees) of 2.9 per cent for the May 2018 but for the financial year to date (31 May 2018), the Clime Capital portfolio provided a total return net of fees of 11.1 per cent. While for April 2018, the portfolio delivered a return (net of fees) of 0.7 per cent. On 5 June 2018, the Board declared a fully franked dividend of 1.25cps for the period 1 April 2018 to 30 June 2018 and declared the same for the period 1 January 2018 to 31 March 2018. Yield including franking for April month was 8.4 per cent and whereas for May month, it was 8.5 per cent but otherwise its annual dividend yield is 5.81 per cent. The percentage of Debt in the total capital employed increased from 0 per cent in June 2017 to 19.8 per cent in December 2017. The stock price has been falling for the past 5 years and one may avoid this stock at the current market price of $0.86, down 5% since year to date, given the fundamentals that are yet to turn resilient.

 
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