Amaysim Australia Ltd



AYS Details

Efforts to leverage customer switching behavior from NBN rollout: Amaysim Australia Ltd (ASX: AYS) has unveiled its strategy of entering into the broadband market to take advantage of the likely customer switching behavior that would come from the continued National Broadband Network (NBN) rollout. For this, AYS has entered into a binding share purchase agreement to acquire 100% of the shares in Australian Broadband Services Pty Ltd. AYS would gain access to a proven, proprietary technology platform purpose built for broadband and then launch its own compelling broadband products later this calendar year.
 


Growing subscriber’s base (Source: Company Reports)
 
In addition, AYS would declare its FY 16 full year result on 19^th August, 2016 and had already reaffirmed subscriber guidance of 960,000 to 980,000 for FY 16. The company would also release some its fully paid ordinary shares from escrow on August 19, 2016. Meanwhile, stock has fallen 40.80% in the last six months (as of August 09, 2016) giving an opportunity for investor’s to enter the stock. Based on the foregoing, we give a “Buy” recommendation on the stock at the current price of $1.77
 

AYS Daily Chart (Source: Thomson Reuters)
 
BigAir Group Limited



BGL Details

Acquisition of CyberHound:BigAir Group Limited (ASX: BGL) has acquired the leading Cybersafety and Managed Security Services Provider (MSSP) by acquiring shares in CyberHound effective from 1^st July 2016. BGL has issued around 5 million fully paid ordinary shares to the vendor of shares in CyberHound. With this BGL will be able to bundle additional services such as high speed data links, Internet, IaaS and other Cloud-based services and will offer complementary solutions to its mid-market enterprise customer base. Moreover, in FY17, CyberHound is expected to generate revenues of between $5 million and $6 million, while Net Profit before Tax (NPBT) is expected to be in excess of $1m and the acquisition is expected to be immediately EPS accretive. Meanwhile, BGL stock rose over 19.3% in the last three months (as of August 09, 2016). Based on the foregoing, we give a “Buy” recommendation on the stock at the current price of $0.70
 

BGL Daily Chart (Source: Thomson Reuters)
 
Norwood Systems Ltd



NOR Details

Building sales pipeline:Norwood Systems Ltd (ASX: NOR) launched Corona Cloud & Corona GTS services publically as a Beta and its first sales have come up. Moreover, NOR has planned expenditure budgets for the remainder of FY17 after the company raised $3.5 million prior to 30^th June. NOR is budgeting to receive an R&D tax credit refund of at least $700,000 prior to the 2016 end under the “base case”. The company has signed Devicescape on World Wi-Fi and has continued with the new product development with the focus on World Wi-Fi. Meanwhile, NOR stock has fallen 61.9% in the last six months (as of August 09, 2016) due to soft market conditions, after post ‘Brexit’ which occurred right at the commencement of the Priority Offer. The minimum subscription amount under the Priority Offer of $1 million could not be reached. On the other hand, the correction in the stock placed them at attractive levels. We give a “Speculative Buy” recommendation on the stock at the current price of $0.024
 

NOR Daily Chart (Source: Thomson Reuters)
 
Macquarie Telecom Group Ltd



MAQ Details

Expanding client base:Macquarie Telecom Group Ltd (ASX: MAQ) has entered into a contract for the provision of data center services to a Fortune 100 customer up to 2.5MW of capacity over an initial contract term of six years. MAQ would invest over $15 million in data center’s mechanical, plant and equipment related work in stages over the next twenty months to expand its capacity to meet this demand. The Customer is expected to be active (billing) in Q3 of the FY 17.
 


MAQ strategic position (Source: Company Reports)
 
In FY 16, MAQ expects EBITDA to be in the range of $31m-$33m. On the other hand, MAQ stock fell over 5.1% in the last four weeks due to currency fluctuations (as at August 08, 2016). Moreover, the stock is trading at unreasonable P/E. Based on the foregoing, we give an “Expensive” recommendation on the stock at the current price of $11.50
 

MAQ Daily Chart (Source: Thomson Reuters)
 
MNF Group Ltd



MNF Details

Bought International voice business: MNF Group Ltd (ASX: MNF) has completed the US purchase of the global wholesale voice business of Telecom New Zealand International ("TNZI") for AU$22.0m (NZ$22.4m) after seeking US government approvals. On the other hand, MNF stock has risen 21.52% in the last six months (as of August 09, 2016 and the company will be paying dividend on 29^th September 2016. The stock is trading at a very high P/E and MNF’s full year results are due on August 16, 2016. We give an “Expensive” recommendation on the stock at the current price of $4.05
 

MNF Daily Chart (Source: Thomson Reuters)
 
Megaport Ltd



MP1 Details

Boosting capital position: Megaport Ltd (ASX: MP1) is boosting its capital position and accordingly raised over $17.85M via private placement of 10.5M shares issued at an offer price of $1.70. The amount raised is used for expansion throughout Europe, APAC, and North America as well as staffing and marketing costs and general working capital requirements. Under the recent share purchase plan, the company has offered for purchase of $15,000 in additional fully paid ordinary shares. Moreover, MP1 has acquired ECIX and OM-NIX in Europe at the total cost of $3.1M which would generate annualized revenue of $4.5M and EBITDA of $1M with 180+ additional customers. Meanwhile, MP1 stock has fallen 32.12% in the last six months (as of August 09, 2016) as the ASX had granted Megaport a trading halt to prepare, with its shares placed in pre-open till 1^st August 2016. Moreover, the group’s expansion efforts in Europe could slow down on event of Brexit. We give an “Expensive” recommendation on the stock at the current price of $2.20, and would review the stock at a later date.
 

MP1 Daily Chart (Source: Thomson Reuters)
 
SpeedCast International Ltd



SDA Details

Acquisition update and winning a new agreement: SpeedCast International Ltd (ASX: SDA) lately announced for the acquisition of WINS Limited for EUR 60 million in cash. The company completed the $61 million first placement tranche through the issue of 17.3 million new shares, in order to partially fund the above acquisition. Moreover, SDA has been awarded a new sizeable multi-year service agreement to provide managed satellite communications services by a leading global energy service company. Under the service agreement, SDA would offer fully managed VSAT network services to 18 wellsite locations throughout China. Meanwhile, SDA stock has fallen 22.78% in the last six months (as of August 09, 2016) and was said to remain in Trading Halt at the back of the above announcements. The stock traded with a price rise of 0.56% on August 10, 2016. However, the stock is trading at unreasonable P/E. Based on the foregoing, we give an “Expensive” recommendation on the stock at the current price of $3.60
 

SDA Daily Chart (Source: Thomson Reuters)

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