Indoor Skydive Australia Group Ltd

IDZ Details
 
Efforts to revamp growth: Indoor Skydive Australia Group Ltd (ASX: IDZ) reported about successful completion of commissioning the 12 foot indoor skydiving vertical wind tunnel at iFLY Gold Coast as well as achieving the first test flight in the Gold Coast wind tunnel.
 

Potential Strategy for Growth (Source: Company Reports)
 
The gold coast wind tunnel would be open shortly for commercial purposes, but the unexpected time overrun for the project has led to a 10% rise in the budget resulting to a total project cost in the range of $13 million to $13.5 million. Therefore, IDZ stock corrected over 11.1% (as of January 20, 2016) in the last six months on investors’ concerns over the group’s ability to generate potential growth. But, IDZ is on track with its roll out development plan at Perth and is also pursuing options for tunnels in Adelaide, Sydney and South East Asia. The group is boosting its capital position and made a $6.15 million debt facility with Westpac Banking Corporation. With the stock delivering an 11.1% increase in the last three months (as of January 20, 2016), we remain bullish on IDZ and reiterate our “Buy” recommendation on this stock at the current price of  $0.40
 
 
IDZ Daily Chart (Source: Thomson Reuters)
 

NearMap Ltd

NEA Details
 
Successful in achieving revenue guidance: Nearmap Ltd (ASX: NEA) already reached a $28 million of Australian run rate revenue by the end of November 2015, well within the guidance range of $28 million to $32 million said to be achieved by December 2015. Moreover, the subscription revenues for the Australian business were estimated to be in the range of $13.3 million and $13.7 million for the first half of 2016, which is a rise of 19% - 22%, as compared to $11.2 million for the first half of 2015, indicating the company’s on track progress towards a solid outlook in the coming months. NEA also won a major contract of worth an annual value of $1.47 million from the existing client who would be extending their services from NEA. NEA stock surged over 7.04% in the last three months (as of January 25, 2016) and we reiterate our “Buy” stance on the stock at the current price of  $0.385
 
 
NEA Daily Chart (Source: Thomson Reuters)
 

Seafarms Group Ltd

SFG Details
 
Outstanding stock performance: Seafarms Group Ltd (ASX: SFG) stock surged over 35.38% in just last four weeks (as at January 25, 2016) post the management reported about efforts being made to boost shareholders’ value and company’s focus on the prestigious Project Sea Dragon.
 

Project Sea Dragon’s regional footprint (Source: Company Reports)
 
SFG reached decent milestones and sought approvals during FY15 while targeting to get further approvals from the government by this year end. SFG is planning to complete a Project Development Agreement with the Northern Territory Government which would lead to mapping pathways to a 10,000 hectare aggregation project. Meanwhile, the group’s Crystal Bay brands delivered solid retail and food services in Australia driven by SFG’s expansion efforts of its stock ranging from the delicatessen to freezer. Seafarms Group is also boosting its capital position by raising over $16 million through a private placement and entitlement offer. We give a “Buy” recommendation on SFG at the current price of  $0.088
 
 
SFG Daily Chart (Source: Thomson Reuters)
 

Dyesol Ltd

DYE Details
 
Raising funds for Perovskite Solar Cells commercialization: Dyesol Ltd. (ASX:DYE) is positioning itself by raising funds of $8.1 million through Share Purchase Plan and from investors to commercialize its much awaited Perovskite Solar Cells (PSC). The group’s PSC got a conversion efficiency of 21.02% as per a research team at Ecole Polytechnique Fédérale de Lausanne (EPFL) and this conversion efficiency was certified by Newport Corporation in Bozeman, Montana USA.
 

Perovskite Solar Cells commercialization milestones (Source: Company Reports)
 
Accordingly, Dyesol is placing itself to serve a huge potential demand by offering a cheaper and better alternative to conventional solar PV technology. Despite Dyesol stock rallying over 15.56% in the last six months (as of January 25, 2016), we believe that there is more upside to be witnessed in the coming months and hence give a “Speculative Buy” recommendation at the current price of $0.28
 
 
DYE Daily Chart (Source: Thomson Reuters)

 
Clean Seas Tuna Ltd

CSS Details
 
Expanding products range and geographical penetration: Clean Seas Tuna Ltd (ASX: CSS) stock corrected over 15.79% in the last three months (as of January 25, 2016) as the group expects a pre-tax loss of $7 million during the first half of 2016 against the loss of $0.7 million in H1FY15, due to $4 million expenses charged for valuation adjustment. On the other hand, CSS’s sales volume of 1,098 tonnes during FY15 indicated a 92% yoy rise against FY14, while the group estimates FY16 sales to further improve to about 2,000 tonnes.
 

Farming Locations (Source: Company Reports)
 
The group delivered a 45% sales rise to November 2015 against pcp. The result was driven by Australian and European markets coupled with the group’s efforts to expand into new fresh and frozen products. CSS managed to get a better than expected R&D tax incentive refund of $6.031 million for FY15. We believe that the recent correction in the stock placed Clean Seas at attractive valuations with a reasonable P/E. Based on the foregoing, we give a “Buy” on the stock at the current price of $0.046
 
 
CSS Daily Chart (Source: Thomson Reuters)
 

Mobile Embrace Ltd

MBE Details
 
Ongoing client wins: Mobile Embrace Ltd (ASX: MBE) recently reported that the Australian Turf Club implemented the group’s Clipp, the mobile payment application in nine outlets across two of its sporting venues. Clipp smartphone app has been performing better than the group’s expectations. Mobile Embrace also made a deal with Axiata, a leading Asian Telecommunications Group to boost its market in Malaysia. The group already has agreements with major telecommunication groups in Asia leading to an access to over 1 billion mobile subscribers. Accordingly, MBE stock rallied over 24% in the last three months (as of January 25, 2016) while we believe the stock has the potential to rally further and hence recommend for a “Speculative Buy” at the current price of  $0.31
 
 
MBE Daily Chart (Source: Thomson Reuters)
 

Rewardle Holdings Ltd

RXH Details
 
Strengthening partnerships to boost growth: Rewardle Holdings Ltd (ASX: RXH) shares plunged over 33.33% in the last three months (as of January 25, 2016) partly due to the group’s move of approaching Dick Smith to cease its earlier announced sponsorship. On the other hand, RXH partnered with Di Bella Coffee under its network of Channel Partners to get promotional support from wholesale customer base of over 1000 coffee outlets around Australia. Earlier, RXH added several partners like Bite Size Coffee Treats, Belaroma Coffee Company, Toby’s Estate Coffee Roasters and Dimattina Coffee. We believe investors need to leverage the heavy correction to enter the stock and accordingly give a “Speculative Buy” on the stock at the current price of  $0.15
 
 
RXH Daily Chart (Source: Thomson Reuters)

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