Villa World Ltd

VLW Dividend Details
 
Building strong earnings visibility: Villa World Ltd (ASX: VLW) reported 269 sales during first quarter of 2016 worth of $106.7 million, which is an average sales rate of 90 per month, better than the 82 average sales per month in 2H15, and is on track to achieve a forecasted range of 1,000 to 1,200 sales for FY16. Villa World also estimates a positive FY16 outlook and intends to deliver seven new projects in FY16 while forecasts an EPS growth of 15% to 29.6 cps. The guidance for FY16 NPAT entails a value of $32.6 million as opposed to $25.6 million of FY15. Meanwhile, the shares of VLW surged over 5.56% in the last one month (as at December 23, 2015). The group is trading at very attractive valuations with a cheaper P/E while having a strong dividend yield.
 

Growth Pipeline as of FY15 (Source: Company Reports)
 
VLW stock rallied in the last few days at the back of the news relating to the acquisition of a site at Strathpine at Brisbane’s north, for $24 million. Given the future prospects, we give a “Speculative Buy” on VLW at the current price of  $2.10
 
 
VLW Daily Chart (Source: Thomson Reuters)
 

Nearmap Ltd

NEA Details
 
Strong subscription revenues growth: Nearmap Ltd (ASX: NEA) reported about delivery of $28 million of Australian run rate revenue as of November 2015, and the company is on track to achieve its forecasted range of $28 million to $32 million by December 2015. NEA estimates its subscription revenues for the Australian business to be in the range of over $13.3 million and $13.7 million for first half of 2016, which is a 19% to 22% growth against $11.2 million in prior corresponding period. Moreover, NEA won a major contract with its existing customer worth of an annual value of $1.47 million, with NEA offering extended services. Nearmap is heavily focusing on US expansion and already achieved a contracted sales of USD$500k (AUD$700k). The company has also announced few changes in the board.
 

Group Highlights (Source: Company Reports)
 
The group’s two strong patent approvals for the new multi-directional oblique views, high-resolution digital elevation models - HyperCamera and HyperCamera 2 would continue to drive NEA’s potential opportunity.NEA stock surged over 2.63% in the last four weeks but plunged 6.02% in the last five days (as at December 23, 2015) and we believe the positive momentum to continue further. We maintain our “Buy” recommendation on the stock at the current levels of  $0.39
 
 
NEA Daily Chart (Source: Thomson Reuters)
 

Greencross Ltd

GXL Dividend Details
 
Extending footprint via new stores as well as online platform: Greencross Ltd (ASX: GXL) shares surged over 11.68% in just last five days (as of December 23, 2015) boosted by the reports from the Australian Financial Review about EBOS intending to join TPG Capital with regards to having a substantial stake in GXL. TPG aimed to have about 15% of GXL’s shares on issue. Meanwhile, GXL advised shareholders not to perform any action based on the news relating to TPG filing for an initial substantial shareholder’s notice. On the other side, GXL has built a strong pet business and is accessible to over 59% of ANZ pet owning households. GXL enhanced its online business by 80% in FY15. Moreover, Greencross expanded its store and clinic network by 35% to 332 outlets during fiscal year of 2015 and forecasts to open 20 new stores and build $20 million of acquired vet revenue in fiscal year of 2016.
 

Average Customer Spend (Source: Company Reports)
 
The group also reported a strong first quarter of 2016 revenue growth of 19% while it’s like for like sales rose by 6.0% boosted by Australian retail of 5.0% and New Zealand rose by 9.1%. GXL opened nine new stores as well as finished four vet acquisitions and added six co-located clinics during 1Q16.  We remain bullish on the stock and givea “Buy” at the current price of  $6.60
 
 
GXL Daily Chart (Source: Thomson Reuters)
 

Xero Ltd

XRO Details
 
Improving efficiencies while delivering solid growth: XERO Ltd.’s (ASX: XRO) focus on efficiency paid off and the group reported gross margins of 74% in first half of 2016, as compared to 72% in second half of 2015 and 67% in first half of 2015. The group delivered a strong international growth as well with operating revenue rising 110% on a year on year (yoy) basis during 1H16 and added 74,000 subscribers at CAC (related to cost of acquiring subscribers) of 21 months. Lifetime value for International segment improved by 45% yoy to $1,396 during the period, resulting to an overall lifetime value increase by 16% to $1,805. Xero also enhanced its average monthly ARPU to NZ$30.
 

First Half of 2016 Performance (Source: Company Reports)
 
But management, reiterated its subscription revenue of more than NZ$200 million for 2016 fiscal year (as per June 2015 FX rates). Accordingly, the stock surged over 37.17% (as of December 23, 2015) in the last three months and we believe the stock rally would continue in the coming months and give a “Buy” recommendation at the current price of $18.00

 
XRO Daily Chart (Source: Thomson Reuters)
 

Freelancer Ltd

FLN Details
 
Huge market opportunity: Freelancer Ltd (ASX: FLN) has been delivering strong users as well as projects growth and added over 850,000 users and 450,000 projects during the third quarter of 2015. Based on a McKinsey report, around 160 million jobs, or over 11% of the projected 1.46 billion services jobs in the globe could be carried out remotely (in theory), without any constraints in supply, offering a huge potential opportunity for Freelancer. FLN intends to leverage this potential opportunity, and accordingly, is putting efforts to position itself for the requirement.
 

Geographic and Category Diversification (Source: Company Reports)
 
The group enhanced its cash receipts by 42% yoy to $9.7 million during third quarter of 2015 and recently completed Escrow.com acquisition (secure online payments and online transaction management provider) which has a gross payment volume of US$265 million in fiscal year of 2014 and transaction volume of USD 2.2 billion. Meanwhile, Freelancer stock rallied over 168.46% during this year to date (as at December 23, 2015), and we remain bullish on the stock and give a “Buy” recommendation at the current price of  $1.725
 
 
FLN 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 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.
Copyright
Copyright © 2014 Kalkine Pty Ltd ABN 34 154 808 312. No part of this website, or its content, may be reproduced in any form without the prior consent of Kalkine Pty Ltd.
Kalkine is a trading name of Kalkine Pty Ltd ABN 34 154 808 312, which holds Australian Financial Services Licence No. 425376.