Sirtex Medical Limited (ASX: SRX)

• Recent headwinds: SRX stock has been under pressure this year and declined by 33.77% during this year to date (as of March 29, 2016). This was mainly due to the lower than estimated dose sales by the group for the first half of 2016 which rose by 15.7% to 5,728 doses. The recovering Australian dollar against the US dollar also contributed to the stock decline. Then, the departure of Mike Mangano, the head of its Americas division also added to the decline.
• Positive Outlook: The group still maintained its positive outlook for dose sales for the full year of 2016 and expects an upper end of double digit rise.
• Recommendation: The recent correction in the stock this year placed them in oversold zone. Accordingly, the stock recovered over 4.6% on March 30, 2016. Given the group’s strong SIR-Spheres microspheres expertise coupled with its ongoing penetration, we reiterate our “BUY” recommendation on the stock at the current price of  $28.23

Emerchants Ltd (ASX: EML)

• Focus on UK markets via bet365: The shares of EML delivered an outstanding performance on March 30, 2016 with an increase by 22.77% driven by the group’s penetration into the United Kingdom via its multi-year agreement with online corporate bookmakers, bet365 which operates under Hillside (Sports) GP Limited in UK. These firms would provide the group’s payment cards to their clients enabling them to leverage EML expertise which has strong penetration in the Australian gaming operators. bet365 has been into partnership with the group from August 2015 to implement the payment card in Australia.
• Stock Price Rally: The group’s aggressive expansion efforts generated a strong retuns in its stock enabling a rally of 71.19% in the last six months (as of March 29, 2016).
• Strong Results: EML reported a strong first half of 2016 results with a Revenue and EBITDA rise of 108% and 471%, respectively.
• Recommendation: Given the strong financials and other efforts, we are bullish on EML and accordingly we give a “Speculative Buy” on the stock at the current price of  $1.24