Six Stocks with price within $4 to $5 range

Aurizon Holdings Ltd

AZJ Details 
UT5 submission: Aurizon Network, wholly owned subsidiary of Aurizon Holdings Ltd (ASX: AZJ), submitted to the Queensland Competition Authority its draft access undertaking (UT5 Draft) for the Central Queensland Coal Network for the period July 17 – June 2021. Aurizon Network proposes an overall Maximum allowable Revenue (MAR) of $4,892 million over the four-year regulatory period. This represents an 11% increase in tariffs from FY2017 (UT4) to FY2018 (UT5) on average across the CQCN, based on forecast volume of 226mtpa. The September quarter volume was at 51.2 Mt, a fall of 3%. During the quarter, Aurizon secured a long-term agreement with AGL Macquarie for haulage to the Bayswater and Liddell Power Stations in the Hunter Valley representing volumes of 8.7 mtpa, starting from July 2017 through to December 2025. Aurizon also secured a 2-year contract with Wollongong Coal in southern NSW for haulage from the Wongawilli mine, with up to 0.8 mtpa, expiring August 2018. The company has guided FY2017 coal tonnage at 200 -212 MT. However, AZJ stock is trading at an unreasonable P/E and we maintain our “Expensive” recommendation at the current market price of - $ 4.96

 
AZJ Daily Chart (Source: Thomson Reuters) 

Telstra Corporation Ltd

TLS Details
Rising capital expenditure:Telstra Corporation Ltd (ASX: TLS) recently announced that in the five year to 2021, Telstra expects capital expenditure of about  $3 billion dollars related to building “future proof” networks ($1.5 billion), accelerating digitization of the business ($1 billion) and improving the customer experience. This will facilitate Telstra in generating over $500 million per annum in earnings (EBITDA) benefits via incremental revenues of about $300 million per annum and sustainable cost cuts of over $170 million per annum by 2021. This would lead to an IRR of 16.7% which is above the single-digit full year earning growth rate. But, we believe that there are headwinds to top line growth and the pressure in the stock could continue. On the other hand, Telstra’s strategic partner, Vita Group has agreed to changes in commercial terms with regards to remuneration structure and network of TLS branded stores. The stock looks “Expensive” at the current market price of - $ 4.95

 
TLS Daily Chart (Source: Thomson Reuters) 

Cedar Woods Properties Ltd

 
CWP Details
Moving consistently into FY17: Cedar Woods Properties Ltd (ASX: CWP) reported revenue slightly below that of FY16, while Net profit growth was at 2.4% to $43.6 million. The company declared dividend of 28.5 cents for the year. During the year, the company began sales and development at Ellendale in Queensland; and in the first quarter FY17, the first stage is sold over 50%. The group has also strengthened its presence in South Australia with preferred proponent status on a second-high quality infill project at Port Adelaide. 

NPAT and dividends historical performance (Source: Company Reports)
 
As per first quarter FY17 update, the company has presales of $230 million up from $184 million. Despite forecasting a softness in first half of FY17, CWP estimates a better strong second half while FY17 profit is expected to be similar to FY16 record NPAT. The company believes that its Landmark projects in Queensland, Victoria, Western Australia and South Australia are positioned to drive growth from FY18. The stock is currently trading at decent dividend yield and has an attractive P/E. We rate the stock as a “Buy” at the current market price of - $ 4.81

 
CWP Daily Chart (Source: Thomson Reuters) 

Bega Cheese Ltd

BGA Details
FY16 PAT growth: Bega Cheese Ltd (ASX: BGA) fell 6.2% on December 02, 2016 as the sector witnessed pressure owing to regulatory changes in China. BGA appointed Paul van Heerwaarden as the CEO, lately. The group earlier reported a 132% rise in PAT to $28.8 million for FY16. Revenues grew 7.5% to $1,196 million while EBITDA grew 56% to $65.4 million. EPS increased to 18.9 cps and final dividend was at 5 cents. For FY16, the company reported a rise in production to over 238,000 tonnes. The company would be investing in infrastructure as key priorities and also in brand portfolio. However, BGA showed concerns over agricultural commodity pricing and also challenging market conditions. Moreover, the stock has a low dividend yield and trading at an unreasonable P/E. We give an “Expensive” recommendation at the current market price of - $ 4.64

 
BGA Daily Chart (Source: Thomson Reuters) 

Independence Group NL

IGO Details
Rise in holdings in Windward Resources:Independence Group NL (ASX: IGO) reported that it now holds circa 94% stake in Windward Resources Ltd after proceeding with compulsory acquisition. Windward holds a large exploration footprint in the Fraser Range region of Western Australia.
 

Independence Group guidance (Source: Company Reports)
 
Additionally, the group would benefit from relative movement in spot prices of Ni, Cu and Au. Independence Group’s Nova project has world-class Ni-Cu-Co deposit. Tropicana gold mine has 400,000 oz/year gold production rate. We put a “Hold” on the stock at the current market price of - $ 4.39

 
IGO Daily Chart (Source: Thomson Reuters) 

Macquarie Atlas Roads Group

MQA Details
Rise in toll traffic:Macquarie Atlas Roads Group (ASX: MQA) noted that AREA, a subsidiary of APRR entered into an agreement to acquire a further 46.1% interest in ADELAC for Euro 130 million. APRR issued a total of Euro 1000 million of bonds under Euro Medium Term Note program. For September quarter, the company has noted a rise of 4.9% and 3.4% in average toll revenues and traffic, respectively. 

Toll revenues and traffic highlights (Source: Company Reports)
 
For nine months, weighted average toll revenues increased by 5.6% while traffic grew 3.4%. The company has declared a dividend of 9 cents and is trading at a decent dividend yield. The group lately appointed Lyndal Coates as additional company secretary. We recommend a “Hold” on the stock at the current market price of - $ 4.64

 
MQA Daily Chart (Source: Thomson Reuters)

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