Three stocks that slipped on ASX – Bionomics, Premier Investments and Crown Resorts

Bionomics Ltd


BNO Details
·       Positive results of the BNC210 Phase 2 Generalized Anxiety Disorder Trial:Bionomics Ltd (ASX: BNO) stock fell 9.2% on 22^nd September 2016 which may be owing to profit booking to some extent. The company’s update of results of the BNC210 Phase 2 Generalized Anxiety Disorder (GAD) trial drove the stock by 48.2% in the last five days alone (as of on 21^st September 2016). As per the results there is a positive top-line data from its Phase 2 clinical trial of BNC210, a novel, first in class, negative allosteric modulator of the alpha7 nicotinic acetylcholine receptor, in patients with Generalized Anxiety Disorder (GAD). Both the primary endpoints met with a high level of significance which suggests potential for the paradigm change for treatment of anxiety disorders. Phase 2 results will strengthen BNC210 licensing package and provide a significant boost to partnering prospects.
·       Recommendation:We believe there is still some potential in the stock and hence, we give a “Speculative Buy” recommendation on the stock at the current price of $0.345
 
Premier Investments Limited


PMV Details

·       Lower than estimated FY 16 results: Premier Investments Limited (ASX: PMV) stock fell 2% on 22^nd September 2016 after the company announced the FY 16 results. In FY 16, PMV reported an underlying net profit of $145.4 million, a growth of 22.6% on the total sales growth of 10.9% to $1.05 billion. Total like-for-like sales rose 3.5% across the entire group. On the other hand, the 2H16 trading is impacted by one-off external events including the warm weather, an early Easter, misaligned school holidays, and the political uncertainty driven by the Federal Election. Therefore, a significant change in trading momentum occurred across June and July, while the overall LFL sales growth has left the inventory clean at year end. Meanwhile, PMV stock has rose 10.14% in the last three months as on 21^st September, 2016, and is trading at a higher P/E.
·       Recommendation:Based on the foregoing, we give an “Expensive” recommendation on the stock at the current price of $16.17
 

FY16 Financial Performance (Source: Company Reports)
 
Crown Resorts Ltd


CWN Details

·       Softness in FY 16 result: Crown Resorts Ltd (ASX: CWN) stock fell over 1.92% on 22^nd September 2016 as the stock traded ex-dividend. CWN reported a fall of 22.7% in the normalized net profit after tax (NPAT) of $406.2 million in FY 16. A net gain from the partial sale of shares in Melco Crown was the major component of $555.2 million in significant items. On the other hand, Crown’s Australian resorts achieved normalized EBITDA growth of 1.8% even though the normalized revenue growth is 0.8%. Moreover, the CWN is progressing with the demerger, as announced in June 2016. CWN is exploring a potential IPO of a 49% interest in a property trust which would own some of Crown Resorts’ Australian hotels, with Crown Resorts retaining a 51% interest. Additionally, CWN is continuing to improve and grow Crown’s portfolio of well-recognized, premium branded assets. Crown’s international operations, network, contacts and joint ventures leverage to promote Crown’s integrated resorts and operations would contribute to the group’s performance in the coming months. Meanwhile, CWN stock has risen 10.9% in the last six months as on 21^st September, 2016.
·       Recommendation:We give a “Hold” recommendation on the stock at the current price of $13.27
 

FY16 Financial Performance (Source: Company Reports)

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