Create Free Account

By creating account you will get access to hot stocks & personalised emails

Mid-Cap

Five Online Stocks in our Radar

October 07, 2015 | Team Kalkine
Five Online Stocks in our Radar

XERO FPO NZ (ASX: XRO)


 
On 30 September, 2015, the company announced that it had crossed a significant milestone of 100,000 subscribers in the United Kingdom to its global accounting platform. The company has scaled quickly across the world because of the proven capabilities of its product and has become particularly popular with small businesses by replacing complex and tedious accounting tasks with an easy to use cloud-based system. CEO Rod Drury said that two years ago, the company reached 30,000 subscribers in the UK and now celebrates the milestone of 100,000. The global growth can be attributed to constant innovation and the delivery of the best in class tools to partners and small businesses. The global cloud accounting platform is now used by more than half million subscribers in more than 180 countries with staff in the UK, USA, Australia and New Zealand. It is seamlessly integrated with more than 400 third-party tools and the company was ranked number one by Forbes as the World's Most Innovative Growth Company in 2014 and 2015.


User Base and Direct Sales (Source: Company Reports)
 
The company has also announced a strategic platform partnership with OzForex Group Ltd, one of the largest international payments businesses in the world. The platform which is now live will enable the company's Australian customers to automatically make payments directly from the OzForex platform. The rollout for customers in other parts of the world will take place over the next few months. This is yet another example of innovation in creating partnerships which add value to customers and subscribers.
 
We note that the company has increased its subscriber base tenfold over the last four years and is focusing on continued growth in the substantial UK and USA markets. The growth could be explosive since the company estimates the size of the potential market in the USA at 29 million. We believe that the company is headed for much bigger goals and objectives and rate the stock as a Buy at the current price of $14.59.


XRO Daily Chart (Source: Thomson Reuters)

SEEK Limited (ASX: SEK)


 
The company has reported record results for FY 2015 which includes revenue up by 20% to $ 858.4 million, EBITDA up by 15% to $ 348.9 million and NPAT excluding significant items up by 6% to $ 189.8 million. Dividends were up 20% to 36 cents per share. CEO and co-founder Andrew Bassa said that the record results have been achieved while re-investing significantly across the group. Australia and New Zealand showed strong revenue growth of 14% and a clear market leadership position with 32% of placements, a lead of 10 X over the nearest competitor. Total visits were in excess of 35 million, a CAGR of 22%; mobile visits were 20.8 million, a CAGR of 47%, and CV profiles grew by 63% to 6.1 million. The international operations achieved revenue growth of 31% and EBITDA growth of 34% with a record of growth in market leading businesses in high-growth markets and good financial results and operating metrics. Zhaopin delivered great results and is now the market leader in China with both job seekers and number of unique customers. In November 2014, the Asian arm completed transaction to acquire 100% of JobStreet Corporation Berhad which has been integrated. The outlook for FY 2016 is revenue growth in the range of 15% to 18%, EBITDA growth of 5% to 8% and underlying NPAT of approximately $ 200 million.


Customers and Job postings (Source: Company Reports)
 
The P/E ratio seems to be a little high, but given the market leadership and the growth potential, we believe that the premium is justified in recommending that you buy the stock at the current price of $12.45.


SEK Daily Chart (Source: Thomson Reuters)
 

TechnologyOne Limited (ASX: TNE)


 
In the latest development, the company announced that it was acquiring Jeff Roorda and Associates, an unlisted Australian company for approximately $ 10 million in cash. A significant part of the purchase price is payable on the achievement of an earn-out and the acquisition is expected to be earnings neutral for FY 2016. Jeff Roorda was established for asset management planning in government infrastructure and provides long-term planning and risk management for critical public infrastructure assets such as roads and pipe networks. The acquisition will add skills to the company such as long-term asset management planning and asset valuation and meets the needs of the target market customers.


R&D Expenses (Source: Company Reports)
 
TNE is Australia's largest enterprise software company with offices across six countries. Over 1000 leading corporations, government departments and statutory authorities use their software. Their half yearly results are in line with guidance with revenue up 3% to $ 2.4 million and profit before tax down by 10% to $ 1.4 million. In the case of this company, half yearly results cannot be extrapolated into yearly results and strong growth is expected both in license fees and profits for the full year. Shares have risen impressively over the past year but this price rise means, that in our opinion, the shares are expensive at the current price levels of $3.85 and you should wait for a pullback in prices or really exciting future news before you consider an investment.


TNE Daily Chart (Source: Thomson Reuters)

Nearmap Ltd (ASX: NEA)



The company has announced its results for FY 2015 and the key metrics are revenue up by 32% to $ 23 million, gross profit up by 36% to $ 20.7 million, gross margin up from 85% to 88%, EBIT up by 20% to $ 14.8 million and group cash down 26% to $17.2 million. These results show strong revenue growth with subscription revenue up by 32% supported by a high level of renewals, high and stable gross margins and increase in gross margins, increased profitability as evidenced by the growth in gross profits. The strategic investments are ahead of the growth curve with expanding sales and marketing, increasing management bandwidth and scaling systems and processes. The balance sheet continues to be strong with zero debt.
 

Revenue Statistics (Source: Company Reports)

As regards business growth opportunities, the growth in aerial content market is being created by the company as well as new use cases, and there is scope for further gains in market share. Growth in the SME customer segment is being driven by tailored marketing campaigns supported by a dedicated sales force while growth in the Enterprise customer segment is characterised by a selective approach. New technology and ancillary products include 3-D modelling to provide productivity and efficiency gains to customers and oblique images provide the basis for new product offerings. We are bullish about the recent announcement from the company that they have been granted 2 new patents for a new high altitude wide area imaging camera system which have the advantage of covering large areas in a shorter period of time. These new patents will help in the US which is the company's target market for big growth and we would rate the stock as a Buy at the current price of $0.430.


NEA Daily Chart (Source: Thomson Reuters)
 

Netcomm Wireless Ltd (ASX: NTC)

 

The results for FY 2015 showed significant increases in revenue, EBITDA and net profit after tax compared to the previous year. The company continued to build on its global Machine to Machine business while strengthening its position in Rural Broadband as the rollout of NBN gathers momentum. Revenue was up 15.1% to $ 74.3 million which was also above the previous guidance of $ 73 million. EBITDA was up 39.8% to $ 7.3 million which was also above the previous guidance of $ 7 million despite the business reinvestment of $ 1.8 million. Net profit after tax was up 142% to $ 2.5 million. The balance sheet continues to be strong with a net cash position. The strong position reflected continued growth in the Ericsson/NBN Fixed Wireless Project particularly in the second half of the year. Revenues from this contract resulted in a substantial increase in revenues and profits during the year. The M2M business accounted for 45.5% of group sales and 54.5% of EBITDA because of the higher margins.


Contracts and Revenue Split (Source: Company Reports)
 
Given the substantial global opportunities, the board remained focused on conserving cash for reinvestment in the business and decided that a dividend will not be paid for FY 2015. Continued growth is expected in FY 2016 and beyond, and the investment in FY 2015 puts the company in a position to deliver further M2M and Rural Broadband contracts on attractive terms. The company has also established strategic partnerships with a number of leading providers and telecommunication companies.


NTC Daily Chart (Source: Thomson Reuters)

We believe that the company is in an excellent position to benefit from the NBN conversion of households to its fixed wireless service. Other efforts along with company’s performance makes this stock to be the one that you can buy at the current price of $1.525.

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 © 2015 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.



 
Small-Cap
One Energy Stock Focused on Strengthening Asset Reliability and Driving Organic Growth -KAR
November 26, 2024Team Kalkine
Mid-Cap
Technical Analysis on One ASX-Listed Stock – CIA
November 25, 2024Team Kalkine
Blue-Chip
Key Business Insights on this Consumer Staples Company– TGT
November 25, 2024Team Kalkine
Small-Cap
One NASDAQ- Listed Movies & Entertainment ADR Under Radar- iQIYI, Inc
November 22, 2024Team Kalkine
Blue-Chip
One Internet Services & Infrastructure Stock Near Resistance Levels – SNOW
November 22, 2024Team Kalkine

Get In Touch

By submitting your details and clicking on the Register button below, you agree to Kalkine’s Terms and Conditions and agree to receive marketing offers, including to be contacted by email or phone, as set out in our Privacy Policy. Any calls will be made by Kalkine Pty Ltd or Kalkine Solutions Private Limited on our behalf.You also agree that Kalkine/KSPL can give you its Financial Services Guide by electronic means (including by website link or email). Before accessing our services, please read the Financial Services Guide available here.

Please wait processing your request...

Our Company

Useful Links

Contact Us

ISO Certified Market Research

Kalkine Solutions Private Limited, authorized representative of Kalkine Pty Ltd, holds ISO 27001:2022 certification bearing Certificate No.- IC-IS-2404072

Our Company

Useful Links

Contact Us

Disclaimer

The information given by Kalkine Pty Ltd ABN34 154 808 312 (Australian Financial Services License Number 425376) on this website is general information or advice only.

It does not take into account any of your personal objectives, circumstances or needs. Choosing an investment is an important decision. If you do not feel confident making a decision based on the recommendations Kalkine has made in our reports, you should consider obtaining personal advice from an authorised adviser.

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. Terms & Conditions have been provided for our services, please go through them and also read our Financial Services Guide.

Our website may contain information on past performance of particular investments. Past performance is not an indicator of future performance. Hypothetical returns may not reflect actual performance. Any displays of potential investment opportunities are for sample purposes only and may not actually be available to investors.

The information on the website does not constitute an offer to sell securities or a solicitation of an offer to buy securities. Our reports contain general recommendations to invest in securities.

Copyright 2024 Krish Capital Pty. Ltd. All rights reserved. No part of this website, or its content, may be reproduced in any form without our prior consent.