Nextdc Ltd

NXT Details
·        New appointment to board: Nextdc Ltd (ASX: NXT) stock rallied over 3.03% on March 31, 2017 with improving sentiments in the market towards the stock. The group recently got Ms Sharon Warburton on board as non-executive director. The group reported a strong first half of 2017 performance and delivered a revenue from continuing operations rise of 39% year on year (yoy) to $58.7 million. Contracted utilization enhanced 7.2MW to 30.0MW while interconnection surged 42% yoy to 5,472, comprising 5.5% of recurring revenue. The group’s EBITDA enhanced 110% to $23.9 million during the first half while the operating cash flow improved $19.5 million to $25.4 million.

·        Recommendation: NXT stock rallied over 4.8% in the last four weeks (as of March 30, 2017) while we give a “Hold” recommendation on the stock at the current price of - $ 4.08 

Ongoing strong performance (Source: Company Reports) 

Metals X Ltd

MLX Details
·        Diversified base metals company: Metals X Ltd (ASX: MLX) rallied 9.9% on March 31, 2017 partly at the back of commodity price movements. MLX is among the top ten primary Tin producer at AISC margins of +A$10,000/t. The group produced over ~30,000tpa Cu. The group’s world class nickel-cobalt project, which is Australia’s largest undeveloped Nickel and Cobalt Resource of 1.9Mt contained Ni and 150Kt Co, is development ready. Accordingly, the group built a strong balance sheet holding over A$112 million cash and working capital. The group has a well-managed debt profile.

·        Recommendation: MLX stock rose over 26.8% in the last three months (as of March 30, 2017) and we believe the bullish momentum in the stock would continue in the coming months. Trading at a cheap level, we give a “Buy” recommendation on the stock at the current price of $ 0.78

Karoon Gas Australia Ltd

KAR Details
·        Right to negotiate a final agreement with Petrobras: Karoon Gas Australia Ltd (ASX: KAR) stock rose over 9.7% on March 31, 2017. This rise followed a slip witnessed in stock prices on March 30, 2017 as the group revealed that it got the right to negotiate a final agreement with Petróleo Brasileiro S.A. (Petrobras), on the potential sale of an interest in the Baúna and Tartaruga Verde oil fields. Petrobras notified Karoon that the process relating to the sale of Baúna and Tartaruga Verde has been withdrawn at the moment and the same will be reinitiated adhering to Petrobras’s revised divestment process.Meanwhile, the group reported that they would engage any potential partners and is committed to any future process relating to these assets.

·        Recommendation:KAR stock lost over 15.8% in the last four weeks (as of March 30, 2017) and we believe investors need to leverage this correction. We recommend a “Buy” for the stock at the current price of – $ 1.64

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