WAM Capital Ltd

WAM Details
Strong returns: WAM Capital Ltd (ASX: WAM) reported a 28.9% portfolio return as on September 30, 2016 as compared with 14% from S&P/ ASX all ordinary accumulation index in last one year. Its NTA after tax as on the same date was at 202.93 cents per share.
 

WAM performance (Source: Company Reports)
 
In August, WAM completed a share purchase plan (SPP) and placement, which raised a combined $247.5 million driven by strong demand from shareholders. The company had paid full year dividend of 14.5 cents and has gross assets of $1,234.8 million. The stock is trading at an attractive dividend yield and has yielded 18.07% returns in the last one year (as at October 20, 2016). We rate the stock as “Hold” at the current market price of $ 2.32

 
WAM Daily Chart (Source: Thomson Reuters) 

Djerriwarrh Investments Ltd

DJWDetails
Dip in profit and dividend cut:Djerriwarrh Investments Ltd (ASX: DJW) reported a 13% dip in net profit for FY16 to $40.7 million. The group cut final dividend to 14 cents a share while the full year payout ratio of 24 cents was attained as compared with 26 cents in earlier year. Furthermore, directors have downgraded the FY17 dividend to 20 cents with board foreseeing a continued environment of lower growth, lower dividend income and lower capital gains.
 

Full year results (Source: Company Reports)
 
Further, the group’s $500 million portfolio yielded negative 1.1% return against a benchmark index return which gained 2.2% after the group avoided investments in real estate trusts and gold stocks. The company writes options to enhance returns, which are covered by its equity holding. This generates an extra income but also restricts some of the upside potential from owing stocks over longer period. Further, the outlook in terms of investments does look little hazy. Based on the foregoing, we rate the stock as “Expensive” at the current market price of $ 3.59

 
DJW Daily Chart (Source: Thomson Reuters) 

Ironbark Capital Ltd

IBC Details
Sharp dip in net profit: Ironbark Capital Ltd (ASX: IBC) reported a drop in net tangible assets to $0.544 for the month of September 2016 against $0.554 of August 2016. The group also had reported a sharp dip of 68.6% in net profit to $0.381 million on 98.3% fall in investment revenues to $0.024 million for the full year ended June 2016. Accordingly, EPS fell by 59.7% to 0.29 cents per share; and interim dividend paid for FY16 was 0.75 cents per share, which was down by 62.5% on previous year. The group delivered a final dividend at 0.45 cents per share, which was down 55%. The stock is also trading at a very high P/E. We think that the stock is “Expensive” at the current market price of $ 0.47


IBC Daily Chart (Source: Thomson Reuters) 

Flagship Investments Ltd

FSIDetails
Strong portfolio return: Flagship Investments Ltd (ASX: FSI) reported an increase in net tangible asset value closing at the end of September at 182.3 cents per share from 181.8 cents at the end of June 2016. In fact, the group earlier reported of 12.6% rise in portfolio as on June 2016 as compared to ordinary index decline of 2%.
 

Portfolio performance (Source: Company Reports)
 
It declared an interim dividend of 3.5 cents per share. The company reported that it reduced its expenses by removing duplicate structure and that would benefit it in expanding profit. Despite having a decent dividend yield, the stock is trading at an unreasonable P/E. We rate the stock as “Expensive” at the current market price of $ 1.60

 
FSI Daily Chart (Source: Thomson Reuters) 

Milton Corporation Ltd

MLTDetails
Built a diversified portfolio:Milton Corporation Ltd (ASX: MLT) paid a final dividend of 9.9 cents per share making full year dividend to 18.6 cents per share while its EPs is 19.5 cents. Profit for the year grew 1.1% to $126.4 million. Diversified portfolio helped the company to maintain earnings despite that some sectors suffered significant earning reduction.

 
Fully franked dividend history (Source: Company Reports)
 
Majority of companies in the portfolio increased dividends, which helped MLT to improve its investment income. Going forward, the management said that the first half of 2017 witnessed an increased investment income from many of the companies in the portfolio but the group has been unlikely to offset the fall in dividend from energy and resource sector. However, the income in second half is expected to show improvement. Although the company has said that first half and full year 2017 underlying operating profit may be subdued, the long-term potential still holds value. We maintain a “Buy” recommendation on the stock at the current market price of $ 4.20

 
MLT Daily Chart (Source: Thomson Reuters) 

Sandon Capital Investments Ltd

SNCDetails
Strong dividend: Sandon Capital Investments Ltd (ASX: SNC) has surged 8.72% this year to date (as at October 20, 2016) and reported net assets after tax of $0.9996 as at September 30, 2016. Since inception, the group has delivered 10.2% as gross performance against 7.2% of All Ordinaries Accumulation Index as at September 30, 2016. The total FY16 revenues of $4.65 million indicated a 367% surge against $0.997 million. The net profit after tax for FY16 was at $2.2 million against $0.521 million. With this, the basic EPS improved from 1.48 cents to 5.3 cents per share. For FY17, the company has declared fully franked dividend of 3 cents. On the other hand, the stock is trading close to its 52-week high price and we give an “Expensive” recommendation at the current market price of $ 0.92

 
SNC Daily Chart (Source: Thomson Reuters)

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