Smart Parking Ltd 


SPZ Details

New contract awards and product launches:Smart Parking Ltd (ASX: SPZ) has got contract from Progressive Enterprises to install the the SmartGuide Parking technology into the new Cider Building on Williamson Avenue. Even Stockland has awarded the company a tender for supply and installation of parking guidance technology into one of Stockland’s shopping center. SPZ recently launched new product called SmartPark in partnership with ACT Government and also a ParkCBR app. This would help the drivers to save time in finding the place of parking while app would help finding and paying for parking even easier.
 

Net operating cash flow (Source: Company Reports)
 
SPZ has over net operating cash flow of $0.3 million during 2016 year to date. The group’s ongoing improving pipeline coupled with its expanding product portfolio drove the stock over 21.74% in the last six months (as of May 30, 2016) despite incurring a net loss of $1.2 million at first half of FY16. The stock has gained over 5.4% on May 31, 2016 post falling 6.67% in the last one month. We believe there is room for growth in the stock. Accordingly, we give a “Speculative Buy” on the stock at the current market price of $0.295
 

SPZ Daily Chart (Source: Thomson Reuters)
 
ICSGlobal Ltd


ICS Details

Strong first half of 2016 result: ICSGlobal Ltd (ASX: ICS) reported a splendid 30% rise in consolidated profit to $0.58 million on 43% rise in revenue to $2.47 million in first half of FY16. The company has declared interim dividend of 2 cents, reporting a rise of 33% over the corresponding half year 2015. The company has guided for profit of $1.15 million to $1.25 million for FY16, indicating the second half of FY16 would also report robust performance. The group’s UK business segment, MBC, reported a 26% rise in revenues for GBP or 43% rise in AUD while profit grew 36% in GBP or 56% rise in AUD. MBC has also signed additional medical clinics in Q1 2016. Its open learning segment has seen more commercial clients coming to its fold for online courses on subscription model and upfront payments.
 

ICSGlobal Financial Highlights (Source: Company Reports)
 
The stock is also trading at a relatively reasonable P/E as compared to its peers. ICS stock rallied over 20.86.1% (as of May 30, 2016) in the last four weeks and we believe the stock has more potential in the coming months. Based on the foregoing, we recommend the stock as a “Speculative Buy” at the current market price of $1.84
 

ICS Daily Chart (Source: Thomson Reuters)
 
Adacel Technologies Ltd


ADA Details

New order inflow:Adacel Technologies Ltd (ASX: ADA) reported that it has secured new, renewal and expanded orders during April 2016 worth over $13 million. Most of its new orders are of multi-years and for company’s training simulator and air traffic management products. With this order inflow, the management expects FY16 PBT to report 70% growth over previous year. For first half of FY16, the company reported 42.1% rise in revenues to $24.61 million from continuing operations while profit was at $5.71 million. The company also declared an interim dividend of $0.0125 per security. Meanwhile, ADA stock has been bullish from quite a while now and generated over 400% return in the last one year and rallied over 34.72% in the last three months (as of May 30, 2016). We give a “Speculative Buy” on the stock at the current price of $2.65
 

ADA Daily Chart (Source: Thomson Reuters)
 
Paragon Care Ltd


PGC Details

In-organic growth strategy: Paragon Care Ltd (ASX: PGC), the global suppler of a full range of products to healthcare companies, has a clear strategy to acquire complementary business that can be easily integrated into its own platform. The company has added new products such as NeuroCom Balance Solutions, Thermi – Aesthetic technology based products to its portfolio. Recent acquisitions entail Meditron, Designs for Vision and Western Biomedical.
 

Key Highlights from May Company Updates (Source: Company Reports)
 
The company earlier reported that it acquired eleven companies since 2009 including three in past 12 months. As an effect of earlier acquisitions, the company had earlier reported over 185% rise in revenues to $38.4 million in the first half of FY16 over the corresponding period of FY15 while NPAT grew by 215% to $2.6 million. However, despite good profit growth, the cash flow from operations is meagre $0.25 million. But, the stock was added in All Ordinaries index as per S&P Dow Jones Indices’ March quarter rebalance. Further, PGC has released a positive outlook for the full year results. Meanwhile, the stock has been trending upwards and generated over 18.26% return in the last four weeks (as of May 30, 2016). The stock is also currently trading at a decent P/E. Hence, we give a “Speculative Buy” on the stock at the current price of $0.68
 

PGC Daily Chart (Source: Thomson Reuters)

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