Livetiles Ltd


LVT Details

Growing Annualized Subscription revenue: Livetiles Ltd (ASX: LVT) recently reported that they appointed Mr Peter Nguyen-Brown as Chief Technology Officer. But, the group’s shares fell over 18.75% (as of June 06, 2016) in the last four weeks partly due to Rhipe selling their stake in the group. Rhipe sold their 20.38 million shares in the group for $4.48 million while retained their 4.085 million shares which would expire in September, 2017. On the other side, LVT delivered a decent March quarter performance and enhanced its Annualized Subscription Revenue (ASR) to $649,000 as of March 2016. LVT added 29 paying customers during the quarter leading to an overall paying customers to 120. The group’s development of its partner ecosystem (31% growth during the quarter) is ongoing and made a distribution agreement with Tech Data Corporation in the United States.
 

Annualized Subscription Revenue (Source: Company Reports)
 
LVT also made a Microsoft Co-Marketing Agreement in the United States to include the SMB segment. We believe the stock would be able to recover in the coming months and recommend investors to leverage the correction as a buying opportunity. Based on the foregoing, we give a “Speculative Buy” on the stock at the current price of $0.20
 

LVT Daily Chart (Source: Thomson Reuters)
 
Vmoto Ltd


VMT Details

Improving Prospects: Vmoto Ltd (ASX: VMT) stock plunged over 43.1% in the last three months (as of June 06, 2016) as the challenging market conditions across China impacted the group’s production which fell to 18,700 units during the first quarter of 2016 as compared to 19,752 units in first quarter of 2015. VMT issued earnings forecast of $1.8 million to $2.0 million in NPAT in fiscal year of 2016 due to tough market condition in China. On the other hand, the group’s shipments started to realize initial order to a major European supermarket firm which has over 300 stores in Europe. VMT got initial order to supply 385 units of Vmoto’s electric two-wheel vehicle products to Loop Systems for use in Loop’s Electric Scooter Sharing Project while orders would be received in FY2016. Moreover, the group’s Managing Director bought 3.59 million at 23 cents indicating their confidence in the group. VMT even gets repeat business from B2B customers and is making solid marketing efforts to expand its high margin international opportunities. We give a “Speculative Buy” on the stock at the current price of  $0.165
 

VMT Daily Chart (Source: Thomson Reuters)
 
McMillan Shakespeare Ltd


MMS Details

Strong Group Remuneration Services performance: McMillan Shakespeare Limited (ASX: MMS) Group’s Remuneration Services division delivered a solid revenue rise by 10.4% yoy driven by major drivers like number of salary packages and novated leases. Given such a strong result, MMS stock surged over 30.70% in the last three months (as of June 06, 2016). Accordingly, the segment’s NPAT margins also improved by 1.3% to 31.0% on the back of ongoing cost controls coupled with technology advancements.
 

Integrated Business Model (Source: Company Reports)
 
MMS is building strong base for this division via its wins and even retained contracts. MMS is expanding its product range via launch of Maxxia Plus. On the regulatory front, a letter from the Federal leader of the opposition to National Automotive Leasing & Salary Packaging Association, stated that labor would continue to retain the present arrangements related to all measures regarding salary packaging and Fringe Benefit Tax measures. We believe that MMS stock has more potential for growth in the coming months and accordingly give a “Hold” recommendation on this stock at the current price of $14.78
 

MMS Daily Chart (Source: Thomson Reuters)
 
Village Roadshow Ltd


VRL Details

Attractive valuations: The shares of Village Roadshow Ltd (ASX: VRL) plunged over 24% (as of June 06, 2016) in the last six months due to weaker first half of 2016 performance wherein the group reported a net loss of $3.46 million as compared to $13.8 million net profit in the first half of 2016. On the other hand, the group is restructuring its divisional and corporate finance facilities to enhance its flexibility and interest savings. The group is positioning its marketing solutions by improving its Edge Loyalty and acquisition of Opia. VRL is even expanding its max and Gold Class as well as building new cinemas to leverage high population areas in Australia and Singapore.
 

VRL Financial performance (Source: Company Reports)
 
VRL is also targeting China opportunity via its theme parks and rolling out its low cost “Big Box” concept. Management also hinted that they have plans to boost their cash flows and support their Gold Coast theme parks going forward which would drive the stock in the coming months. VRL has already surged about 3.54% in the last one month (as at June 06, 2016). We give a “Buy” recommendation on this dividend yield stock at the current price of $5.18
 

VRL Daily Chart (Source: Thomson Reuters)

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