Four stocks that rose – BHP Billiton Ltd, Auscann Group Holdings Ltd, WorleyParsons Ltd and SEEK Ltd

BHP Billiton Ltd

BHP Details
·         Recommendations to be structured as a sole Australian entity:BHP Billiton Ltd (ASX: BHP) stock jumped up about 4.6% on April 10, 2017 boosted from a push on restructure recommendations. Primarily, activist hedge-fund Elliott Management Corp has suggested the company to have a unified corporate structure as an Australian entity, asset spinoff with demerging of US petroleum business and improved capital returns through buybacks to maximise tax credits. These suggestions have been highlighted to enhance shareholder value by about 50%. Elliott is known to have about 4.1% of BHP’s London-listed shares.

·         Recommendation: The stock has moved up 5.5% in last six months (as on April 07, 2017). We maintain a “Buy” recommendation at the current price of $ 25.73

Auscann Group Holdings Ltd

AC8 Details
·         Harvesting first medicinal cannabis crop in Chile:Auscann Group Holdings Ltd (ASX: AC8) stock rallied over 3.8% on April 10, 2017 driven by the news of the first medicinal cannabis crop being harvested at Chile. DayaCann, planted the crop which is the group’s 50:50 joint venture (JV) with Fundacion Daya. Out of the several strains harvested, four strains have been selected as superior which would be chosen for future crops. The group reported that over 400 plants are now harvested, which would yield around 300 kgs of dried cannabis buds that would be processed into medicinal cannabis formulations selected for clinical trials for registration in Chile and sale to third parties. The group says that South America would be an attractive region with Argentina recently joining Chile, Columbia and Uruguay in legalizing medical cannabis for therapeutic purposes.

·         Recommendation: AC8 stock rallied over 7650% in the last six months (as of April 07, 2017) and we believe this momentum would continue in the coming months. We maintain our “Hold” recommendation on the stock at the current price of $ 0.805 

Progressing Harvest in Chile (Source: Company Reports)

WorleyParsons Ltd

WOR Details
·         Positive sentiments and media reports driving the stock higher: WorleyParsons Ltd (ASX: WOR) stock rallied over 4.1% on April 10, 2017 driven by various factors including commodity price movement, positive sentiments among brokers, and media reports that dubai-based Dar Group has acquired an interest worth $175 million in WOR. The group also got a contract from the Manaseer Group. Under the contract the group would offer project management consulting (PMC) services for a Greenfield integrated potash and phosphate fertilizer complex in Jordan. The group would supervise the selection and delivery of the engineering, procurement and construction services from the design and procurement stages to the construction and commissioning stages over a three-year period.

·         Recommendation:WOR stock enhanced over 25.9% in the last six months (as of April 07, 2017) and we maintain our “Hold” recommendation on the stock at the current price of $ 11.49

SEEK Ltd

SEK Details
·         Ongoing bullish momentum: SEEK Ltd (ASX: SEK) stock closed at an almost flat note on April 10, 2017 with a slight rise of 0.122% post witnessing an initial weakness. The stock generated over 8% in the last four weeks alone (as of April 07, 2017). The group’s New York Stock Exchange listed subsidiary Zhaopin Limited (NYSE: ZPIN) made a definitive agreement and plan of merger. The Buyer Group which comprises SEEK International Investments Pty Ltd and affiliates of Hillhouse Capital Management as well as FountainVest Partners is all set to acquire Zhaopin for US$18.20 per American Depositary Share of the Company. This move has come as a strategy to support Zhaopin’s long-term growth. SEK will have similar controlling equity interest in the privatized company in line with current interests, in case the merger is completed.

·         Recommendation:We maintain a “Hold” recommendation on this dividend yield stock at the current price of $ 16.35
 

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.