Skydive Beach Group Ltd

               SKB Dividend Details
 
Expanding penetration and acquisition efforts to drive growth: Skydive Beach Group Ltd (ASX: SKB) shares surged over 25.23% (as of December 17, 2015) in the last three months driven by its positive guidance, with SKB estimating greater than 100,000 tandem skydives and revenues of $47.5 million in FY16 which includes Australia Skydive acquisition impact (with the acquisition contribution from fourth quarter of FY2015). Skydive added over 16 drop zones in Australia, mainly at East coast tourist sites via $11.7 million Australia Skydive acquisition. SKB acquired New Zealand major skydiving firm based in Queenstown, NZone Skydive for $15.5 million. As a result, SKB raised over $19.58 million via 65.27 million entitlement offer to fund these acquisitions. Skydive also reported a better FY15 performance as compared to the prospectus estimates and generated a revenues increase by 46% year on year (yoy) to $26.3 million in fiscal year of 2015 while its EBITDA rose by 35% yoy to $6.02 million. The group’s ongoing focus on operations, diversification efforts coupled with acquisitions would support the stock further. Moreover, management even upgraded its EBITDA to $11.5 million for the fiscal year of 2016 as compared to its earlier EBITDA estimates of $10.9 million. SKB stock has been consolidating since the last four weeks and generated a 2.86% increase (as of December 17, 2015) and we believe the rally in the stock would continue. Accordingly, we give a “BUY” recommendation on the stock at the current price of  $0.36
 
 
SKB Daily Chart (Source: Thomson Reuters)
 

Indoor Skydive Australia Group Ltd

         
          IDZ Details
 
Building flexible balance sheet: Indoor Skydive Australia Group Ltd (ASX: IDZ) reported that they made a $6.15 million debt facility with Westpac Banking Corporation enabling the group to decrease its weighted average costs of capital resulting to a flexible balance sheet to fund its construction projects. Meanwhile, Indoor Skydive Australia reported outstanding FY15 performance with total revenues rising to $6.59 million in fiscal year of 2015, against $1.32 million in FY14, driven by solid tunnel based revenue and occupancy. The group have already built a strong unearned revenue (pre-sales) of $1.3 million during the period. Indoor Skydive Australia is seeking to expand to more than 80 vertical wind tunnels across the world and planned to open more than 40 by the end of 2016. The group expects a strong global growth of 50% during fiscal year of 2016.
 

Fiscal year of 2015 Performance analysis (Source: Company Reports)
 
However, the shares of Indoor Skydive Australia fell over 16.67% in the last six months (as of December 18, 2015) on the back of tough market conditions. Nonetheless, we believe the stock has potential given the growth forecast. Based on the foregoing, we give a “Buy” recommendation on the stock at the current price $0.40
 
 
IDZ Daily Chart (Source: Thomson Reuters)
 

Catapult Group International Ltd

          CAT Details
 
Strong outlook: Catapult Group International Ltd (ASX: CAT) shares delivered outstanding performance during this year to date and generated over 184.62% (as at December 18, 2015) driven by its strong FY15 performance. CAT statutory revenues and EBITDA increased by 26% yoy and 34% yoy, respectively, during FY15. CAT’s units ordered rose by 48% yoy in FY15 on the back of growth from emerging markets especially from Asia and parts of Europe. Catapult Group International generated a total contract value (TCV) increase of 48% boosted by rising activity in new leagues outside traditional CAT territories coupled with the segment’s transition to subscription model. The group built a strong customer base. Catapult Group is boosting capital position in order to fund the major expansion efforts of its sales and marketing platforms, and accordingly finished $6 million institutional placement of new ordinary shares. Meanwhile, Catapult Group’s management reports for a strong fiscal year of 2016 outlook for the group and expects at least 8,000 units’ sales during the FY16, which is an increase of minimum 56% against FY15. CAT forecasts its TCV to be at $24.5 million in FY16, which is an increase of 42% as compared to FY15.
 

Strong Fiscal year of 2016 performance estimated (Source: Company Reports)
 
Recently, the group entered into a memorandum of understanding with champion data for Australian Football League wide deal. CAT stock surged over 28.47 % (as of December 18, 2015) in the last four weeks boosted by the positive outlook by the group and we believe the stock has the potential to grow further. Based on the foregoing, we put a “speculative BUY” on the stock at the current price of $1.85
 
 
CAT Daily Chart (Source: Thomson Reuters)

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