Magellan Financial Group Ltd

MFG Details

Good response for Magellan Global Trust IPO: Magellan Financial Group Ltd.’s (ASX: MFG) stock was up 5.8% on September 29, 2017 driven by the positive sentiments around their Magellan Global Trust IPO that surpassed the minimum capital raising size through commitments received from the Priority, General Public and Broker Firm Offers in excess of said target of $250 million. MFG stock has corrected over 20.2% in the last three months (as of September 28, 2017) as their FY17 performance was not as expected. However, the group still witnessed average FUM rise of 15.8% over the year to 30 June 2017. Given their strong marketing efforts, growing fund inflows, and rising hopes on its Global Trust, we believe the stock would recover in the coming months. We give a “Buy” recommendation on this dividend yield stock at the current price of $ 24.56



MFG Daily Chart (Source: Thomson Reuters)

Spark Infrastructure Group

SKI Details

Growing distributions:Spark Infrastructure Group (ASX: SKI) recently reported that a majority of proposals in TransGrid’s draft decision on potential investment in the transmission network supplying NSW and the ACT has been accepted by Australian Energy Regulator. TransGrid proposed to cut average transmission prices by 2.5% in real terms while the draft also includes a decrease of 8.4% in TransGrid’s proposed annual revenue and a 39% cut to proposed capital expenditure, including plans to replace ageing cables supplying Inner Sydney. On the other side, management had issued distribution guidance for 2017 and 2018, of 15.25 cps and 16.0 cps, which is an annual growth of 5.2% and 4.9%, respectively. Trading at a good dividend yield,we give a “Buy” on this long-term stock at the current price of $ 2.52



SKI Daily Chart (Source: Thomson Reuters)

Telstra Corporation Ltd

TLS Details

Expanding customer base: Telstra Corporation Ltd (ASX: TLS) has continued to enhance their customer base and added 218,000 domestic retail mobile users comprising 169,000 postpaid hand-held, and 132,000 domestic retail fixed broadband users in FY17. On the other hand, Telstra shares corrected over 20.2% in the last three months (as at September 28, 2017) on concerns that the nbn rollout would impact their revenues. However, increasing nbn market share, expanding reach of 4G network, and efforts on repositioning the brand and achieving the net productivity targets, are expected to drive better results going forward. We believe investors can add this lucrative business to their portfolio, and maintain “Buy” on the stock at the current price of $ 3.49



TLS Daily Chart (Source: Thomson Reuters) 

AusCann Group Holdings Ltd

AC8 Details

Diversified exposure:While AusCann Group Holdings Ltd (ASX: AC8) has been diversifying its exposure via DayaCann, a joint venture in Chile; the group received a cannabis manufacturing license in Australia by office of Drug Control. The group’s first harvest in Chile was productive and on target, with DayaCann providing over 400kg of dried medicinal cannabis to a GMP-certified manufacturer. They also made a strategic partnership with Tasmanian Alkaloids which is a major manufacturer of controlled substances. The AusCann - Tasmanian Alkaloids partnership was granted cultivation, production and research licences for Tasmania by the Office of Drug Control, post year-end. The group also raised $17 million over the financial year, to pursue their growth targets. We give a “Buy” on the stock at the current price of $ 0.46



AC8 Daily Chart (Source: Thomson Reuters)

Onevue Holdings Ltd

OVH Details

Rise in funds under administration: Onevue Holdings Ltd (ASX: OVH) delivered a Fund Services revenue rise of 65% to $19.3 million for fiscal year of 2017 while managed fund administration funds under administration (FUA) enhanced $79 billion to $489 billion. The group’s contract with NAB Asset Servicing has potentially doubled the size of the business.



Onevue Group, an integrated offering (Source: Company reports)

Onevue Superannuation Member Administration Services had reported an FUA of $1.96 billion boosted by organic growth with new clients acquired simply through reputation and word of mouth. Platform Services Revenue surged 11% year on year (yoy) to $17.2 million while FUA closed the year at a record $4 billion, showing a compound annual growth rate (CAGR) of 27% since IPO. Gross funds flow surged 35% yoy to $1.2 billion. The group now expects $6 million per annum of contracted organic revenue transitioning over FY18 and FY19. Given the performance and momentum, we maintain a “Buy” on the stock at the current price of $ 0.58



OVH Daily Chart (Source: Thomson Reuters)

Karoon Gas Australia Ltd

KAR Details

Grabs a block in Santos Basin:Karoon Gas Australia Ltd (ASX: KAR) won the bid for a 171-square km offshore block in the Santos Basin in the state of Santa Catarina, Brazil, just south of Rio de Janeiro with a water depth of over 400m.


S-M-1537 Block (Source: Company reports)

The block, awarded by National Agency of Petroleum (ANP), offers low risk exploration, which has the potential for hundreds of millions of barrels of oil. The group would finish the acquisition of the block during December 2017; and pay a total of $A8 million in a non-refundable bid bonus and would offer a refundable Work Program guarantee bond to ANP of $A2.5 million. Given the developments and boost from commodity prices, we rate “Buy” on the stock at the current price of $ 1.28



KAR Daily Chart (Source: Thomson Reuters)

Infigen Energy Ltd

IFN Details

Expanding penetration: Infigen Energy Ltd (ASX: IFN) is currently positioning itself to service the commercial/industrial market as well as other parts of the wholesale market. The group has faced some pressure in the fourth quarter of FY17 as production was impacted by wind conditions in NSW and SA. However, the group’s August production for FY18 has been better than prior corresponding period while year-to -date productivity is close to prior corresponding period. The group has an installed capacity of 557 MW and expects an additional 113 MW capacity from completion of its Bodangora wind farm, due in August 2018. The group is now seeking to penetrate in New South Wales and into the Victorian and Queensland regions of the National Electricity Market. IFN has also appointed new directors (Mr Mark Chellew and Ms Emma Stein) recently. We rate a “Buy” on the stock at the current price of $ 0.76



IFN Daily Chart (Source: Thomson Reuters)

Contango Microcap Ltd

CTN Details

Ongoing Buyback program: In the August monthly report, Contango Microcap Ltd (ASX: CTN) reported that their portfolio returned 4.1% over the quarter as compared to the Small Ordinaries Index return of 5.1%.


August performance (Source: Company reports)

On the other hand, the improving resources sector led to better payout ratios among large as well as small cap producers. Strong commodity prices also drove better cash flow generation, stronger balance sheets and dividend levels. The group’s ongoing buyback program would continue to support the stock at lower levels. Given the commodity price movements, exposure to a diversified microcap stocks’ portfolio with companies having low debt remains a favorable option. We give a “Buy” on the stock at the current price of $ 0.96



CTN Daily Chart (Source: Thomson Reuters)

Scentre Group

SCG Details

Decent FFO growth:Scentre Group (ASX: SCG) has delivered a Funds from Operations (“FFO”) of $638 million in the first half of 2017 which represents 12.01 cents per security, reflecting an increase of 3.5%. The group expects to have full year growth in funds from operations of about 4.25%. The group has also lined up developments worth $900 million (with SCG share of $625 million) with expected total returns in excess of 15%. We maintain “Buy” on the stock at the current price of $ 3.93



SCG Daily Chart (Source: Thomson Reuters)

Gold Road Resources Ltd

GOR Details

Positive drilling results at Gruyere Joint Venture: Gold Road Resources Ltd (ASX: GOR) saw a stock price surge of 3.6% on September 29, 2017, while the group recently reported that high?grade gold has been intersected along the strike length of both the Attila ? Alaric and Gruyere ? YAM14 trends at the Gruyere JV (50% owned by Gold Road). The ongoing drilling program is focusing on discovering and defining high margin mining projects within over 25 kilometre radius of the Gruyere Mill and Open Pit Mine. We give a “Buy” on the stock at the current price of $ 0.71



GOR Daily Chart (Source: Thomson Reuters)

Disclaimer
 
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.