Fairfax Media Limited

FXJ Details
Improved financial performance:  Fairfax Media Limited (ASX: FXJ) and NZME Limited (ASX: NZM) have received and agreed to a request from the New Zealand Commerce Commission (NZCC) to extend the March 15, 2017 target date for the NZCC's final decision on the proposed merger of the two businesses. The NZCC is now seeking to provide a final determination of the proposed merger by April 11, 2017. For the first half financial year 2017, FXJ recorded net profit of $85 million, which is an increase of 6% over prior year while earnings per share rose 9% driven by the share buy-back program.
 

Segment Results Overview (Source: Company Reports)
 
Group operating EBITDA was reported to be $145 million while the revenue was of the order of $903 million. Cost reduction programs helped a 5% dip in operating expenses. Further, FY17 H2 total expense is also expected to be moderate at around 13%. There has been an impact of listings environment on print advertising that lowered the revenue by 11%, while domain delivered 15% growth in digital revenue. In the past three months, FXJ stock generated over 17.9% returns (as of March 27, 2017). There are media reports that TPG Capital has bought shares in Fairfax Media this week. Details, as appropriate, are yet to be disclosed by the groups on this. We give a “hold” recommendation at the current price of $ 1.06


FXJ Daily Chart (Source: Thomson Reuters)

AirXpanders Inc

AXP Details
Revenue growth: AirXpanders Inc (ASX: AXP) reported full year 2016 financial results with revenues of US$570,316. The revenue growth was driven by sales of the Aeroform®Tissue Expander System that increased 95% from 2015 levels. Operating expenses stood at US$15.2 million mainly led by investment in sales, market and administrative expenses in preparation for U.S. commercial launch and the continued scaling up of manufacturing. As of December 31, 2016, the company recorded cash, deposits at call and long term fixed interest term deposits of US$11.5 million as of December 31, 2016. The net loss for the year surged to $19,422,897 compared to $11,161,345 for the previous corresponding period. AXP recently received commitments to raise $45 million for building inventory for the U.S. market, accelerating investment for U.S. sales and marketing and completing commercial manufacturing capacity expansion. The group has also received a patent in the US for its AeroForm Device. The stock plunged 38.4% in last six months and surged 9.4% in last one month (as at March 27, 2017). AXP has been added to All Ordinaries Index effective March 20, 2017. We believe that the group needs to demonstrate more potential, and is “expensive" at the current share price of $ 0.89


AXP Daily Chart (Source: Thomson Reuters)

Freelancer Ltd

FLN Details
Record full year financials: For the full year 2016, Freelancer Ltd (ASX: FLN) recorded net revenue of $52.7 million, increase of 37% on prior comparable period basis and the fastest growth since IPO. Gross profit increased 36% to $45.6 million. Total jobs posted on the website increased 33% while total registered users rose 26%.
 

Financial highlights (Source: Company Reports)
 
FLN had record positive operating cashflow of $4.5 million while the groups has been re-investing for growth. Further, cash balances grew 8% to $34.8 million. Looking ahead, FLN expects to post record results in financial year 2017. In the past six months, FLN recorded a 43.6% drop in stock price (as of March 27, 2017) placing the stock at lucrative levels.We maintain a “buy” recommendation at the current share price of $ 0.85


FLN Daily Chart (Source: Thomson Reuters)

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