mid-cap

The rise in Northern Star Resources, Bellamy’s Australia and Retail Food Group

May 12, 2016 | Team Kalkine

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The rise in Northern Star Resources, Bellamy’s Australia and Retail Food Group

Northern Star Resources Ltd

NST Details

Higher levels: Northern Star Resources Ltd (ASX: NST) peaked on May 11, 2016 trading session by 7.9% to touch its 52-week high levels. The company's stock price was mainly driven by a rebound in gold price. On the other hand, the stock is currently trading at a low dividend yield and has a relatively higher valuations with an unreasonable P/E.
Recommendation: We rate the stock as "Expensive" at the current price of -$4.70

Bellamy's Australia Ltd

BAL Details

Possible delay in China regulatory changes: Bellamy's Australia Ltd (ASX: BAL) soared 8% on May 11, 2016 trading session. The news over the possible Chinese government’s delay in its intended regulatory changeson the online import of foreign foodstuffs boosted the stock. China seeks to raise its tax share of the booming health foods sector via increased regulation. With relative appreciation of the Chinese currency over the years ahead, exporters of Australian foodstuffs in the country are likely to be benefitted thereby supporting our bullish stance.
Recommendation: We maintain our "Speculative Buy" rating at current stock price levels of $11.92

Revenue and EBIT (Source: Company Reports)

Retail Food Group Limited

RFG Details

Positive drivers: Retail Food Group Limited (ASX: RFG)recorded a 5.23% gain on May 11, 2016 trading session even though there is no specific news from the group. But, broadly Melbourne Institute Index of Consumer Sentiment indicated that consumer confidence has got a boost in May against April levels.
Recommendation: Trading at an attractive dividend yield, we believe the stock is a "HOLD" at current levels of $5.87

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