Gage Roads Brewing Co Limited

Improved Gross Margin in Q1 FY 17: Gage Roads Brewing Co Limited (ASX: GRB) posted a 19% growth in the sales of Gage Roads proprietary products in the Q1 FY 17 from Woolworths retail stores to consumers over Q1 FY16, and a 110% growth in the independent retail channel sales of Gage Roads’ proprietary brands. Additionally, gross profit margin improved from 51% to 54% as compared to Q1 FY 16. Accordingly, we give a “Buy” recommendation on the stock at the current price of – $ 0.038

Rubik Financial Limited

Loss in FY 16: Rubik Financial Limited (ASX: RFL) has executed an extension to its long-term, exclusive partnership with Temenos and launched its Rubik Model Bank solution on digital banking platform. Moreover, RFL reported an 11.4% growth on the revenue to $43.3 million over FY 15 due to the new CWX product sales and the increased project work across all groups. The underlying EBITDA for FY 16 grew 32.3% to $6.5 million and the net loss after tax of $2.7 million as compared to the net loss after tax of $14.1 million in FY2015. The group will conduct its AGM on November 29, 2016. Meanwhile, RFL stock rose over 26.44% in six months (as of November 02, 2016) while we give a “Speculative Buy” recommendation on the stock at the current price of – $ 0.105                                                                                                                                                             

XPED Ltd

First quarter activities: XPED Ltd (ASX: XPE) has completed the Sale and Purchase Agreement (SPA) of JCT in the first quarter ending September 30, 2016. After the acquisition, the first revenue reported for the quarter on a cash basis was $274,000. XPE has also entered into a licensing agreement with Telink Semi?conductor Co Ltd to license its proprietary Auto Discovery Remote Control (ADRC) technology to Telink to develop and supply chipsets incorporating ADRC. In addition, XPE has signed a joint venture agreement with Complex Semiconductor Co Ltd to jointly develop a sales and manufacturing channel to allow ADRC growth through Xped app subscriber acquisition, device data capture, analytics and product distribution in China and abroad. Moreover, XPE has appointed Martin Despain as the Managing Director. Additionally, there was ADRC development activities, showcasing of IoT solution at Microsoft Partner event, received OCF Platinum membership and granted further patents in the first quarter. The group will conduct its AGM on November 30, 2016. Meanwhile, XPE stock fell 49.3% in three months (as of November 02, 2016) opening an investment level. Accordingly, we give a “Speculative Buy” recommendation on the stock at the current price of – $ 0.031  

Senetas Corp Limited

Strong Result but softness in Outlook: Senetas Corp Limited (ASX: SEN) is set to hold its AGM on November 17, 2016. SEN had reported that future sales growth rates remain difficult to predict accurately as the sales lead times are long and customers are generally reluctant to disclose detail about the timing and scale of planned purchases. On the other hand, the group reported a 19% growth in the operating revenue to $19.34 million in FY 16 due to the growth in both product sales and maintenance revenue and 30% growth in the net profit after tax to $5.22 million. We give a “Speculative Buy” recommendation on the stock at the current price of – $ 0.12  

Funtastic Limited

Subdued FY 16 Financial Performance: Funtastic Limited (ASX: FUN) has surged 6.67% on November 03, 2016. The group otherwise reported a 14% fall in the revenue and 58% increase in the net loss from ordinary activities after tax from continuing and discontinued operations (all attributable to members of Funtastic Limited) in its preliminary final report for FY 16. On the other hand, FUN stock fell 53.13% in this year to date (as of November 02, 2016) opening a potential bargain opportunity. The group has stated to meet its targets for 2017 as a profitable entry. Accordingly, we give an ultra “Speculative Buy” recommendation on the stock at the current price of – $ 0.016

Norwood Systems Ltd

Modest increase in spending in coming quarter: Norwood Systems Ltd (ASX: NOR) in the September quarter has prioritized Corona corporate and Europa carrier OTT (Over the Top) platform sales and would continue this focus into the current and coming quarters. Moreover, NOR has recently launched World Phone v2.0 on the iTunes App store. Additionally, NOR’s shift in sales and marketing focus has led to a short-term decline in the booked revenue and expects a modest increase in spending this coming quarter. The stock rose 4.7% on November 03, 2016. We give a “Speculative Buy” recommendation on the stock at the current price of – $ 0.022

Clean Seas Tuna Limited

Next quarter operating cash outflow to be higher: Clean Seas Tuna Limited (ASX:CSS) is expected to have its next quarter total estimated operating cash outflows of about AUD 11,400,000 while the group reported for net cash from operating activities of AUD 380,000 in the September quarter. The cash and cash equivalents at end of the September quarter was AUD 639,000. We are bullish on the stock given the prospects and put a “Buy” recommendation at the current price of – $ 0.038

Platypus Minerals Ltd

PFS for L-Max plant began in the September quarter: Platypus Minerals Ltd (ASX: PLP) has fallen 6.6% on November 03, 2016. The group recently informed its holders about the expiry of options to acquire shares at $0.035 per share on December 01, 2016. The group began the pre-feasibility study on Phase1 L-Max plant in the September quarter, while began drilling at the Lemare Lithium Project in Quebec, Canada and was granted exploration licence (EL 8468) for the Euriowie Project near Broken Hill, NSW. Moreover, the joint venture is signed with St-Georges for the Royal Project in Quebec, lodgment of provisional patent application for the recovery of caesium/rubidium formate from an intermediate product generated by L-Max technology, the Lemare Phase 1 diamond drilling campaign completed early October. We give a “Speculative Buy” recommendation on the stock at the current price of – $ 0.014

Rox Resources Limited

Acquiring 100% of the Collurabbie project: Rox Resources Limited (ASX: RXL) in the third quarter ending September has completed the aircore drilling program and received an encouraging result north of the Sabre prospect. Moreover, RXL is acquiring 100% of the Collurabbie project from Falcon Minerals Limited at the purchase price of $25,000 cash and 7,500,000 shares in Rox. Additionally, Doray has completed a detailed gravity survey, which has highlighted several areas of interest with regard to the Mt Fisher Gold Project. For the Reward Zinc Project, Teck has exercised its pre-emptive right to purchase Rox’s interest for up to $20.6 million. Meanwhile, RXL stock rose 45.45% in six months (as of November 02, 2016) and we give a “Speculative Buy” recommendation on the stock at the current price of – $ 0.016

Yellow Brick Road Holdings Ltd

Negative Cash flow in Q1 FY 17: Yellow Brick Road Holdings Ltd (ASX: YBR) recently reported about stepping down of Tim Brown, the CEO – Lending effective December 31, 2016. The group also tried to clarify about the misrepresentations of results of shareholder votes further to the outcome of the AGM. YBR had reported a net operating cash deficit (including acquisition and integration outflows) in the first quarter of FY 17 which has declined by $1.72 million to a deficit of $0.98m as compared to the surplus of $0.74m in Q4 FY2016. On a normalized basis, the net underlying operating cash surplus has declined by $1.8m to a deficit of $0.2m as compared to the surplus of $1.6m in Q4 FY2016. Additionally, the settlements came in at $3.9b which is the third highest quarter of settlements in group history, but fallen 3% compared to Q1 FY 16. YBR’s book of loans under management grew 24% versus prior corresponding period (pcp) to $39.4 billion. Meanwhile, YBR stock fell over 39.58% in the last six months (as of November 02, 2016) but rose 10.34% on November 03, 2016; and we give an “Expensive” recommendation on the stock at the current price of – $ 0.16 

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