Altura Mining Limited

Trading close to a 52-week low level: Altura Mining Limited (ASX: AJM) is a key player in the global lithium market and is leveraging increasing demand for raw materials for manufacturing lithium-ion batteries for electric vehicles and static storage uses.
The company recently appointed Mr. Phil Robinson as the Chief Operating Officer. Mr. Robinson brings a strong operational focus to the role, and his skill base is in line with the company’s transition from project developer to miner. His key focus will be finalizing the ramp-up to nameplate production at Altura’s 100%-owned Pilgangoora Lithium Project.


Excerpts of Income Statement (Source: Company Reports)

The Group’s operating loss after providing for income tax and non-controlling interests for the year ended 30 June 2018 was $12,816,965 compared to a loss of $6,165,006 in FY17. The loss in 2018 related to the Group’s administrative and corporate costs and a net foreign exchange loss in the year.

Among the liquidity ratios, the current ratio stood at 1.59x in FY18 as compared to 0.95x in FY17, an increase of 67.9% Y-o-Y.However, the profitability measure i.e. ROE declined by 200 bps in FY 2018 on the YoY basis.
What to Expect From AJM: Going forward, the company wants to create shareholder value through the development of profitable mining operations and other supplementary mining activities that deliver strong cash flows for the group and results in dividends for shareholders on a regular basis.

The stock has underperformed over the last few months with negative returns of 50.0%, 39.53% and 18.75% over the last six months, three months and one-month period, respectively. And, it is trading close to a 52-week low level which provides an opportunity to enter the stock at lower levels. By looking at the current trading scenario and decent outlook backed by higher demand of lithium product around the world, we, therefore, maintain our “Speculative Buy” recommendation on the stock at the current market price of A$0.125 per share (down 3.846% on 25 February 2019).
 

LiveTiles Limited

Rapid annualised recurring growth: LiveTiles Limited (ASX: LVT) is an information technology company and is into the sale and development of business software in Australia and overseas. The company’s products include LiveTiles SharePoint, LiveTiles Cloud and LiveTiles Mosaic.   

The company recently announced that it had completed the acquisition of Wizdom, the leading digital workplace software business in Europe.LiveTiles has issued 49,715,598 shares as part of the upfront consideration for the acquisition.


Annualised Recurring Revenue (Source: Company Reports)

In FY18, the company continued to invest in driving robust customer and revenue growth. Annualised Recurring Revenue (ARR) grew by 275% in the 2018 financial year to $15.0 million as compared to $4.0 million in FY17, with $11.0 million of ARR added in the 2018 financial year. ARR growth was driven by the company’s growing sales and marketing footprint, development of the company’s partner channel, ongoing product innovation and strengthening brand awareness. The company recorded a loss after tax of $22,058,984 in FY18 compared to $7,394,511 in FY17 primarily on the back of employee benefit expenses.

What to Expect Form LVT: Going forward, the Board and Management of the company expects to deliver another year of strong growth in FY19, driven by the on-going investment in direct sales and marketing, the strategic relationship with N3, the company’s growing partner channel and ongoing co-marketing initiatives and close partnership with Microsoft.

The stock has generated negative returns of 43.90%, 16.87% and 9.21% over the last six months, three months and one-month period, respectively. By looking at strong growth in FY19 due to synergistic acquisitions and current trading scenario, we have a “Speculative Buy” recommendation on the stock at the current market price of $0.355 (up 2.899% on 25 February 2019).
 

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