Antipodes Global Investment Company Ltd

Narrow global valuation dispersion: Antipodes Global Investment Company Ltd (ASX: APL) released its latest monthly NTA and investment update for January 2017. As per the report, NTA before tax stood at $1.117 compared to $1.147 reported in December 2016. Further, global valuation dispersion has continued to narrow from 30 year extremes with value outperforming profitability, growth, momentum & volatility while intensifying inflationary expectations, political uncertainty and protectionist rhetoric fuelled broad based USD weakness and Gold strength. Recently, Jacob Mitchell, chief investment officer at Antipodes Partners Ltd in Sydney, commented that the post-election rally made US stocks way too costly. He further added that with very less margin of safety stocks in the sector were already expensive. In 2016, APL's global equities fund expanded by almost double the MSCI All Country World Net Index in Australian dollar terms. However, currently they are highly expensive. In the past one month, net performance of APL portfolio narrowed by 2.5% compared to a drop of 2.0% benchmark.
 

Net performance of APL Fund (Source: Company Reports)
 
Meanwhile, APL stock has gained 4.74% in the past three months as on February 22, 2017, and is trading at its 52-week high price. We believe that the stock is “Expensive” at the current price of – $ 1.13

Platinum Asset (Investment) Management Ltd

Growth Focus in China: Platinum Asset Management Ltd (ASX: PTM)reported funds under management of $23.135 billion as of January 31, 2017 as compared to $23.178 billion as of December 31, 2016. Additionally, the company records a strong annual dividend yield, and recently, the company increased its position in shares of Sina Corporation by 21.4% in the second quarter leading to ownership of 5.21 million shares. As of January 31, 2017, the Platinum Asia Fund recorded a 1.1% and 2.7% gain in its past one month and six months’ performance, respectively, while there was a respective 1.3% and 4.6% increase in the MSCI AC Asia ex Japan Net Index (in AUD). Looking ahead, the fund is expected to outgrow based on the consensus GDP growth forecasts for 2017 which clearly indicate the growth potential between the developed West and non-Japan Asia. The fund expects activity to remain at strong levels from China based on the economy's recovery towards the end of 2016.
 

Fund performance analysis (Source: Company Reports)
 
In its latest monthly report, the Fund states that Asia is host to cheap attractive stocks and ongoing reasonable global growth and Asian earnings growth particularly makes Asia attractive. With an 10.28% drop in its stock price in the past three months trading (as at February 22, 2017), we believe PTM stock has the upside potential. We give a “Buy” recommendation at the current share price of - $ 4.93

WAM Capital Ltd

Stable results and rising dividend: WAM Capital Ltd (ASX: WAM) recently reported its half yearly financial results with operating profit of $79.7 million for the half year to December 31, 2016. WAM recorded a 14.5% increase in its investment portfolio in the 12 months to December 31, 2016 outperforming the market by 2.9%. Meanwhile, the post tax net tangible assets recorded an 8.8% growth to $1.95 per share from $1.86 per share. With recovery signs in the Australian economy towards the end of 2016, the company believes that equity markets to remain strong with company earnings growth going strong in resources and retail sector. The company announced a fully franked interim dividend of 7.5 cents per share compared to 7.25 per share interim dividend last year. With a growth of 6% in its stock price in the past three months (as at February 22, 2017), WAM is trading relatively close to its 52-week high levels. The group has also outperformed the S&P/ASX ALL Ordinaries Accumulation Index by 1% in January 2017. We recommend a “Hold” rating at the current share price of - $ 2.49

Milton Corp Ltd

Stable NTA levels: Milton Corp Ltd (ASX: MLT)recorded net tangible assets after provision for tax on unrealized capital gains of $3.94 while before tax provision it stood at $4.44 as of January 2017. This as compared to $4.47 in the previous month. MLT has maintained its 2017 fully franked interim dividend yield of 8.7 cents per share. Milton recorded net profit after tax of $60.8 million which is down 11.4% from the same period a year ago. Looking ahead, the second half underlying operating profit is estimated to improve on the previous corresponding half. However, full year 2017 result is likely to be lower than previous year. 

Dividend history performance (Source: Company Reports)
 
MLT expects to maintain its dividend level at 18.6 cents per share. We recommend a “Buy” rating on the stock at the current share price of - $ 4.35

Djerriwarrh Investments Ltd

Declining profits: Djerriwarrh Investments Ltd (ASX: DJW) recorded a profit slip of 41.5% to $12.4 million for its half financial year as compared to same period a year ago. Net operating result was down 34.8% to $16.7 million.
 

Portfolio performance (Source: Company Reports)
 
Looking ahead, DJW investments might be under pressure due to the challenging economic conditions. The latest fully franked interim dividend of 10 cents per share remains unchanged from prior levels. The group has refreshed its on-market share buy-back facility for another year for capital management purposes. Trading at a high level and given limited prospects, we believe that the stock is "Expensive" at the current price of - $ 3.67

Perpetual Equity Investment Company Ltd

Disciplined investment approach: Perpetual Equity Investment Company Ltd (ASX: PIC) recorded 1H17 net profit after tax of $22.7 million indicating a 76% growth over the corresponding period of last year. The company declared a fully franked interim dividend of 2.2 cents per share indicating a 175% increase from the year-ago period. Meanwhile, portfolio performance for the half yearly period stood at 11.2% outperforming the benchmark by 0.8%. The company believes that despite a volatile market, the company has managed to earn higher profits due to its disciplined investment approach. As of December 31, 2016, PIC portfolio held 67% in Australian securities, 14% in global securities and 19% in cash. The stock has surged 7.8% in the last three months (as at February 22, 2017). We recommend a “Hold” rating on the stock at the current share price of - $ 1.04

Argo Investments Ltd

Declining half year revenue and profit: Argo Investments Ltd (ASX: ARG) reported net tangible assets of $7.60 per share as of January 31, 2017. For the financial half year ending December 2016, ARG recorded a dip of 3.8% in operating activities revenue and 8.9% drop in profit levels. The company declared interim dividend of 15 cents per share compared to 15.5 cents same period a year ago. Moreover, ARG stock is trading close to its 52-week high levels. Given the volatile environment, we give an "Expensive" recommendation on the stock at the current price of – $ 7.57

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