Seven West Media Ltd
.png)
SWM Details
-
Stake in Airtasker: Seven West Media Ltd (ASX: SWM) stock surged over 11.5% on June 10, 2016 at the back of its $22 million investment for a 15% stake in the services marketplace ofAirtasker. Earlier, the group announced that it is undergoing negotiations to acquire Perth Now and The Sunday Times from News Australia. SWM and News Corporation intend to execute a news content sharing agreement for The West Australian with News’ daily brands in Adelaide, Brisbane, Melbourne and Sydney. With this move, SWM intends to further boost its presence of global content and platform businesses in the delivery of news and information. SWM is already a joint venture partners in the Community Newspaper Group in Western Australia with News Corporation. SWM have been bullish this year and delivered a year to date returns of over 53% (as of June 10, 2016).
-
Recommendation: We believe SWM has the potential to rally further in the coming months. We maintain our “Hold” recommendation on the stock at the current price of $1.215
Corporate Travel Management Ltd
.png)
CTD Details
-
Focusing on organic growth: Corporate Travel Management Ltd (ASX: CTD) stock surged over 2.5% on June 10, 2016 even though there is not a major update from the group. The group only reported that they would transfer share register to Computershare Investor Services Pty Limited (Computershare) from Link Market Services Limited. On the other side, CTD have been generating an outstanding performance since IPO and EPS grew at a CAGR of 33.4% from 2010 to 2015. The group’s first half of 2016 performance was also solid, with underlying EBITDA rising by 38% to $28.0m, without $2.4 million one-off net revenue items, driven by solid client wins and retention in every CTM region. The group generated over 73% of TTV, 54% of revenue and 80% of underlying EBITDA growth from organic route. The group is investing in client-facing technology and internal business tools, to enhance its competitive advantage. Management recently reconfirmed that they are on track to achieve an underlying FY16 EBITDA at top end of range at $68 million. CTD has already built a market share of 12% in Australia and New Zealand, and accordingly targeting international potential at Asia, US and Europe where the group has less than 1% of market size.
-
Recommendation: We give a “Hold” recommendation on the stock at the current price of $14.97
Corporate Travel Management performance over the years (Source: Company reports)
Disclaimer
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376).The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd currently hold positions in: BHP, BKY, KCN, PDN, and RIO. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.