Orocobre Limited

ORE Details
· Rise in opportunity from Argentina: Orocobre Limited (ASX: ORE) stock surged over 9.8% on November 22, 2016 driven by the commodity price movement. Australian mining players are growing their presence in Argentina after Argentina’s President’s move in the direction of abandoning currency and capital restrictions, as well as cutting taxes and settled the country’s longstanding sovereign debt conflict. ORE is also one such player who is targeting this opportunity as the Argentina. The group’s Borax Argentina production surged 29% on a quarter on quarter basis in September quarter. Meanwhile, the group’s Olaroz segment delivered a decent operating revenue of US$33.5 million for September quarter 2016 while gross cash margin reached US$5,755/tonne. The group is expecting production of greater than 15,000 tonnes for fiscal year of 2017. ORE Expansion studies are on track with a target of 35,000 – 42,500 tonnes overall production. On the other hand, ORE stock already delivered over 55.6% during this year to date (as of November 21, 2016) placing them at higher levels. Concerns over oversupply in Lithium market might also hurt the stock sentiment.

· Recommendation: We give an “Expensive” recommendation on the stock at the current price of - $ 4.12

Olaroz production (Source: Company Reports) 

Technology One Limited

TNE Details
· Delivered seventeenth consecutive year of solid revenues:Technology One Limited (ASX: TNE) stock surged over 11.13% on November 22, 2016 driven by the solid revenues for fiscal year of 2016 results. The group has been reporting solid revenues since seventeen consecutive years. TNE’s cloud first, mobile first strategy is generating ongoing results and accordingly the group’s results surpassed guidance for profit growth between 10% and 15%.  Net Profit after Tax rose over 16% against the prior full year period to $41.3 million. Software as a Service (SaaS) business showed greater than 100% rise for the second consecutive year. License fees rose 14% to $56 million. The group reported good wins in 2016 driven by SaaS. The group continues to focus on Research and Development (R&D) driven investment which reached at $46 million for fiscal year of 2016 representing 19% of revenue.

· Recommendation: TNE stock is trading at a higher P/E, and we believe the stock is “Expensive” at the current price of – $ 5.89

a2 Milk Company Ltd

A2M Details
· Strong China’s performance confirms the group’s growing presence in the region: a2 Milk Company Ltd (ASX: A2M) stock rose over 7.1% on November 22, 2016 driven by their positive four months’ performance for fiscal year of 2017. The group generated over NZ$155.2 million in four months to October 2016 driven by infant formula and milk products. This performance indicates the ongoing performance in China. The growing demand in China at both direct as well as cross border e-commerce (CBEC) trade, indicates rising awareness for the group’s a2 Platinum® and a2 Milk™ brands in China. Marketing strategy in China is also contributing to this awareness. Moreover, China CFDA infant formula registration process is on track.  a2 Platinum® “11/11” singles day volume sales surged more than double as compared to the last year (across a2MC top 4 e-commerce platforms). a2 Platinum® Stage 3 is among top 10 products of total 11/11 products (across all categories) on JD.com. As per the group’s core domestic performance, Fresh milk and a2 Platinum® infant formula performance is on track.

· Recommendation: A2M stock generated over 34.01% in the last six months (as of November 21, 2016), and we give a “Hold” recommendation on the stock at the current price of – $ 2.11
 

Ongoing A2 platinum infant formula performance in China (Source: Company Reports)

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