Three stocks that have moved up on ASX

St Barbara Ltd

Industry: Materials


SBM Details

• Upgraded ratings: St Barbara Ltd (ASX: SBM) continued to rally and delivered returns of 4.3% on  April 04, 2016 as the Standard & Poor’s improved the group’s outlook to B from its earlier rating of B- and even issued a stable outlook for its senior secured debt.
• Strong performance: The stock has been under limelight in the last one year, generating over 845.24% (as of April 01, 2016) returns during the period and rallied over 98.5% in the last six months. The group’s ability to repay $159 million of debt during the nine months till February 2016 contributed to this strong performance given its enhanced free cash flows and operating performance.
• Recommendation: We believe that SBM’s recent performance is mainly driven from higher gold prices and the company may not be resilient to immense volatility. Accordingly, we give an “Expensive” recommendation on this stock at the current price of $2.07

 

Consolidated Gold Production (Source: Company Reports)
 

GWA Group Ltd

Industry: Capital Goods


GWA Dividend Details

• Moderate financial performance: GWA Group Ltd (ASX: GWA) stock corrected over 3.9% in the last one month (as of April 01, 2016). GWA’s Sales (on a continuing basis) rose 3.9% to $220.2 million and the company resumed dividend payments while declaring a fully franked interim of $0.07. The stock delivered returns of 2.7% on April 04, 2016.
• Recommendation: We remain bearish on this stock and put an “Expensive” recommendation on this dividend yield stock at the current price of  $2.30

 

Blackmores Limited

Industry: Household & Personal Products


BKL Dividend Details

• Rising competition: Blackmores Limited (ASX: BKL) stock surged over 4.27% on April 04, 2016 on the back of latest announcements on its entry into the infant formula market. The first half 2016 net profit after tax has also been up 160% and the company has positive net cash balance. It is expected that the company may not face much pressure from the new Chinese tax measures. On the other hand, we believe the stock price rally may be a brief one given the rising competition for the group’s infant formula products from peers like A2 milk, Bega and other small players. With all these firms targeting the Chinese markets, the group might face pressure given a wide choice to consumers. BKL stock corrected over 19.42% during this year to date (as of April 01, 2016).
• Recommendation: In view of the above, high P/E and low dividend yield, we reiterate our “Expensive” recommendation for this stock at the current price of $185.60.

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