Class Ltd


CL1 Details

Increase in billable portfolios: The shares of Class Ltd (ASX: CL1) generated over 90% return in the last six months (as of July 04, 2016) driven by its positive developments. The group, along with Findex has signed the contract for cloud based Self-Managed Super Funds (SMSF) software services. The contract is expected to get over 8,000 SMSFs loaded onto Class over the next couple of years. Meanwhile, Class’ total number of billable portfolios as on March 31, 2016 reached 101,966 which is an increase of 5,329 from December 31, 2015.
 

Expanding portfolio (Source: Company Reports)
 
The portfolio comprised of 100,368 SMSFs which is a significant mark and 1,598 of non-SMSF investments. Meanwhile, Class has reported a dividend distribution of $0.01 and it is even added in all ordinaries index. On the other hand, the group’s strong market rally placed the stock at higher levels trading at unreasonable P/E. Accordingly, we give an “Expensive” recommendation on the stock at the current price of $3.49
 

CL1 Daily Chart (Source: Thomson Reuters)
 
HUB 24 Ltd


HUB Details

Strong Funds under Administration business: Hub 24 Ltd (ASX: HUB) delivered outstanding performance this year, wherein the funds under administration (FUA) has grown 84% to $3 billion. During the March quarter, Fortnum had transitioned the first tranche of about $150 million within their MDA service to HUB24 and further $450 million was expected to be transitioned in tranches during the June quarter.  Additionally, HUB24 had a new white label partnership with Lifespan Financial Planning which has networks of more than 110 offices throughout Australia with more than $1.5 billion under advice.
 

Funds under Administration (Source: Company Reports)
 
On the other hand, HUB stock fell over 5.54% in the last four weeks (as of July 04, 2016) due to a possible Brexit impact on the group’s performance. But, we believe the stock has potential to recover in the coming months as the stock was already up 1.42% in last five days, and accordingly recommend a “Speculative Buy” on the stock at the current price of $3.55
 

HUB Daily Chart (Source: Thomson Reuters)
 
Link Administration Holdings Ltd


LNK Details

Recent integrations: Link Administration Holdings Ltd (ASX: LNK) would be completing all client migrations to become a single managed services platform by the end of 2016 as well as realise significant operational efficiencies. MTAA Super, HESTA & Hostplus of Superpartners migrations are already finished while Cbus migration is finished before June 30, 2016. On the other side, Link has reaffirmed its 2016 estimates and expects revenues to be A$750 million while NPATA before significant items is forecasted to be A$95.5 million.
 

Integration with Superpartners (Source: Company Reports)
 
FY 2016 revenue will have 60% from Fund Administration, 19% from Corporate Markets and 21% from Information, Digital & Data Services. Given the volatility in the markets, its FY16 performance could be impacted. Hence, we give an “Expensive” recommendation on the stock at the current price of $8.34
 

LNK Daily Chart (Source: Thomson Reuters)
 
Onevue Holdings Ltd


OVH Details

Merger with Diversa: Onevue Holdings Ltd (ASX: OVH) is merging with Diversa and has recently finished the due diligence conditions. The merger is expected to finish by September 2016. Meanwhile, post-merger the group anticipated that the net pretax cost synergies would be $4.0m per year. The combined Funds under Trusteeship, Management and Administration (FUTMA) would be about $10.8bn and the company aims to expand clients to more than 75 within the combined trustee, superannuation administration and investment management businesses.
 

Merger Details (Source: Company Reports)
 
The Funds under administration (FUA) would be over $400 billion within OneVue’s Funds Services while there would be $3.2bn of retail FUA within the Platform Services. We give a “Speculative Buy” recommendations on the stock at the current price of $0.615
 

OVH Daily Chart (Source: Thomson Reuters)
 
Rubik Financial Ltd


RFL Details

To Partner with MyState: Rubik Financial Limited (ASX: RFL) has been selected by MyState as a partner for the digital banking transformation, which would go live in August 2016. The group’s customers would get access to MyState’s products and services from the device of their choice (desktop, smartphone or tablet) through the operating system of their choice (iOS, Android, Windows), and at the time of their choice. RFL even raised funds of about $5.29 million (before issue costs) via a non-renounceable entitlement offer which is 1:7 rights issue at a price of $0.10 per share. The group would divert upto $3 million for technological development, upto $2m to repay outstanding short term debt to Viburnum Funds Pty Ltd ATF VF Strategic Equities Fund and balance the remaining amount for general working capital and administrative expenses. The company has appointed Peter Clare to board. RFL rallied over 23.60% in the last three months (as of July 04, 2016) and seems to have more potential. We give a “Speculative Buy” on the stock at the current price of $0.10
 

RFL Daily Chart (Source: Thomson Reuters)

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