Praemium Ltd

PPS Details
 
Strong financials: For the first half year ending December 31, 2015, Praemium Ltd (ASX: PPS) reported strong profit growth with revenue and other income of $14.7 million, 35% increase from year ago period. EBITDA increased 93% to $1.85 million while global funds under administration rose 41% to $4.5 billion. Net profit after tax rose 259% to $1.3 million. Record annual inflows stood at $1.7 billion, an increase of 33%.
 

Strong growth (Source: Company reports)
 
Consequently, the stock generated over 30.4% returns this year to date (as of March 21, 2016) and we believe the momentum in the stock would continue in the coming months. The stock has been added to All Ordinaries Index as per S&P Dow Jones Indices update for March quarter. Based on the above stated positive financials, we rate the stock a “BUY” at the current share price of  $0.36
 
 
PPS Daily Chart (Source: Thomson Reuters)
 

GDI Property Group Ltd

GDI Dividend Details
 
Outstanding dividend yield: GDI Property Group Ltd (ASX: GDI) recorded first half of 2016 financial results with funds from operations of $26 million, 59% of the ‘as is' guidance of $44.3 million provided in August 2015.
 

Portfolio overview (Source: Company reports)
 
The company increased its FFO full year 2016 guidance to 8.8 cents per security from 8.2 cents earlier. Given the strong foundation for growth, GDI recorded a portfolio occupancy of 88% while gearing stood at 31%. Trading at a strong dividend yield and an attractive P/E, we rate the stock a "Speculative Buy" at the current share price of  $0.86
 
 
GDI Daily Chart (Source: Thomson Reuters)
 

Hub24 Ltd

HUB Details
 
New agreement and strong financials: Hub24 Ltd (ASX: HUB) recently signed a new white label partnership with Lifespan Financial Planning. This arrangement would provide Lifespan's network of representatives access to HUB's award winning investment administration and a range of customized portfolios expected to launch in April. Meanwhile, HUB also recorded a strong growth in funds under administration to $2.37 billion from $1.7 billion as of June 30, 2015. Accordingly, the stock rallied over 95.8% (as of March 21, 2016) in the last six months. The stock has been added to All Ordinaries Index as per S&P Dow Jones Indices update for March quarter.
 

Strong financial growth (Source: Company reports)
 
On the other hand, HUB corrected over 13.7% during this year to date (as of March 21, 2016) on the back of ongoing volatile conditions in the global markets while we believe that the heavy surge in the stock placed them at higher valuations. Based on the foregoing, we rate the stock "Expensive" at the current share price of  $4.17
 
 
HUB Daily Chart (Source: Thomson Reuters)
 

Link Administration Holdings Ltd

LNK Details
 
Outstanding recurring revenues: Link Administration Holdings Ltd (ASX: LNK) recorded a strong first half year 2016 growth of 73% in its revenue to $392.4 million as compared to the prior year period. The group has a solid recurring revenues and generated over 91% during the period. Operating EBITDA for the first half accounted for 49.8% of the financial year 2016 prospectus forecast which is above the indicated range of 46% to 49%. Also, operating EBITDA margins are on track for improvements to 24% for the full year led by the Superpartners synergy realization accelerating in the second half of 2016           
 

FY2016 Prospectus forecast (Source: Company reports)
 
Consequently, the group’s stock surged by 8.8% (as of March 21, 2016) since its listing till date. On the other hand, the volatile global markets performance during this year, might pose pressure to the group’s fund administration and corporate segment business. We do not expect a great upside in the stock and rate LNK as "Expensive" at the current share price of  $7.68
 
 
LNK Daily Chart (Source: Thomson Reuters)
 

GBST Holdings Limited

GBT Dividend Details
 
Legal claims and falling financials: For the first half of financial year 2016, GBST Holdings Limited’s (ASX: GBT) operating EBITDA stood at $8.5 million which is the higher end of the guidance provided in October 2015. Net profit stood at $2.3 million, while revenue was up 2% to $56.7 million. On the other hand, GBST Holdings recently announced that the company has been served with a claim and statement of claim by solicitors acting for the company's former managing director, Stephen Lake. The claim alleges that Mr. Lake is owed $2.6 million by the company.
 

Financial highlights (Source: Company reports)
 
The company intends to defend the claim vigorously. With the risks of a legal claim on the company and the results being lower than prior comparable period, we believe that the momentum in the stock is capped. The stock is also trading at higher valuations with a high P/E ratio and a relatively lower dividend yield. Hence, we rate the stock "Expensive" at current share price of  $4.57
 
 
GBT Daily Chart (Source: Thomson Reuters)
 

Class Ltd

CL1 Dividend Details
 
High billable portfolios driving growth: Class Ltd (ASX: CL1) recently announced that the company has reached a significant business milestone with more than 100,000 billable portfolios now on Class. As of February 29, 2016, there were a total of 100,025 billable portfolios on the Class system, an increase of 3,388 portfolios since December 31, 2015. This strong growth led to a 48% rise in sales revenue to $10.7 million for the first half FY2016 compared to year ago period. Net profit after tax for the same period surged 111%.
 

Growing billable portfolios (Source: Company reports)
 
As a result, the stock surged over 39% (as of March 21, 2016) since its listing till date placing them at very unreasonable valuations. CL1 has been added to All Ordinaries Index as per S&P Dow Jones Indices update for March quarter. However, the stock is trading at a high P/E ratio, and has a very low dividend yield. We rate the stock "Expensive" at the current share price of  $1.97
 
 
CL1 Daily Chart (Source: Thomson Reuters)

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