ALS Ltd

ALQ Details

·         Positive Performance for FY17: ALS Ltd (ASX: ALQ) stock rose over 4.2% on May 29, 2017. ALQ has recently reported for a 4% growth in the underlying net profit after tax from continuing operations to $112.7 million during fiscal year of 2017. For the second half, the group reported an underlying result of $53.1 million (excluding non-laboratory operations of Oil & Gas), which is within the guidance range of $50 to $60 million. The revenue from continuing operations grew 2.7% to $1,272 million. Moreover, ALQ has planned to divest the majority of its assets in the Oil & Gas technical services sector. Simmons & Company International, energy specialists of Piper Jaffray, are currently assessing a number of offers to acquire the business. But the company has an intention to retain the laboratory services component. The Oil & Gas businesses being divested have incurred underlying losses of $14.5 million during the year, whilst the Oil & Gas laboratories not being divested delivered an underlying operational loss of $6.3 million. On the other hand, ALQ will be rolling out its new five-year strategic plan in FY 18 under the stewardship of Raj Naran in his new role of Managing Director and CEO.

·         Recommendation: ALQ stock rose over 10.55% in the last three months (as of May 26, 2017) and is trading close to its 52-week high price. We give an “Expensive” recommendation at the current price of $ 6.88
 

FY 17 Financial Performance (Source: Company Reports) 

Sirtex Medical Ltd

SRX Details

·         Results of Injunction Hearing on Share Buy-Back:Sirtex Medical Ltd.’s (ASX: SRX) stock price ended flat on May 29, 2017 post an initial rise after the announcement relating to the outcome of the Federal Court hearing on an injunction application filed by an Applicant (group of lawyers). The injunction application had delayed commencement of the company’s $30 million on-market share buy-back. The Federal Court has now dismissed the hearing and the group now intends to start the buy-back after the ASCO Annual Meeting on June 07, 2017.

·         Recommendation: SRX stock fell over 58.55% in the last six months (as of May 26, 2017) with the recent crash owing to investors reacting adversely to a series of disappointing clinical trial results. Further, SRX has also fired its chief executive as a result of an internal investigation into his share selling over the second half of 2016 and has recently appointed a new full time CEO.We give a “Hold” recommendation at the current price of $ 11.85

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