Donaco International Ltd

DNA Details
Delivered outstanding performance in FY 16: Donaco International Ltd (ASX: DNA) has reported a 602.6% growth in revenue to 143,385,778 in FY 16, reflecting the contribution from Star Vegas while the profit after tax grew to $78,723,501. The company declared maiden dividend of 1 cent per share and has strong balance sheet with $78.2 million of cash.


FY 16 Financial Performance (Source: Company Reports)

In addition, Star Paradise expansion is to introduce new Thai junkets and players would offer further recurring revenue from FY17. Meanwhile, DNA stock is trading at a very cheap P/E with the maiden dividend declared in FY 16. We give a “Buy” recommendation on the stock at the current price of –  $0.47


DNA Daily Chart (Source: Thomson Reuters)
 

National Australia Bank Ltd

NAB Details
Issuance of subordinated notes: National Australia Bank Ltd (ASX: NAB) recently announced for issuance of A$800 million subordinated medium term notes (A$150 million fixed rate and A$650 million floating rate) due 2026. The bank also reported a 3% fall in unaudited cash earnings for continuing operations to around $1.6 billion for the third quarter 2016 as compared to the corresponding period of 2015. Moreover, the charge for bad and doubtful debts grew 21% to $228 million during the period. On the other hand, NAB recently reported that they are avoiding rise in bad-debt levels and are focusing on their asset quality. As a result, NAB stock rose over 7.82% in the last six months (as of September 29, 2016), and has a good dividend yield. We maintain a “Buy” recommendation on the stock at the current price of –  $28.08
 

NAB Daily Chart (Source: Thomson Reuters)
 

Metals X Limited

MLX Details
End of legal battle with Tanami: Metals X Limited (ASX: MLX) and Tanami Gold NL have agreed to end legal proceedings that have surrounded the contested acquisition of the Central Tanami Project by accepting the settlement offer from Tanami of $3M in full and final settlement of the matter.


Total Gold Resources Estimate and the Reserves (Source: Company Reports)

MLX currently produces gold at a run-rate of 250,000 ounces per annum and is targeting to double this over the next few years, and will unlock more value by demerging its gold division (via Westgold Resources Limited) from the remaining businesses. The stock surged over 48.45% in the last six months (as of September 29, 2016), and is still trading at a cheap P/E. We give a “Buy” recommendation on the stock at the current price of – $1.53


MLX Daily Chart (Source: Thomson Reuters)

Chimpchange Ltd

CCA Details
Customer acquisition up 42% in August: ChimpChange Ltd (ASX: CCA) is up 4.4% on September 30, 2016. The group has acquired 5,700 customers in August 2016, which is an increase of 42% on July account openings. CCA has now created more than 100,000 customer accounts on its digital banking platform as at 12 September, 2016. Moreover, CCA is launching two new product features and is set to acquire an additional 25,000 new customers’ base by the end of December quarter 2016. CCA has started trading in June, 2016 on the Australian Securities Exchange (ASX) after it successfully raised $15 million as part of an initial public offer. We give a “Speculative Buy” recommendation on the stock at the current price of –  $0.55


CCA Daily Chart (Source: Thomson Reuters)

Avjennings Ltd

AVJ Details
Operating profit growth in FY 16: Avjennings Ltd (ASX: AVJ) reported profit after tax of $40.9 million in FY16 against $34.4 million of FY15. The revenue growth was of 32.7% to $421.9 million in FY 16, while profit before tax surged 22.0% to $58.8 million during the period. Earnings per share rose over 18.6% to 10.71 cents during the period. Strong revenues and cash inflows with confidence on FY17 outlook made the group declare fully franked final dividend of 3.5 cents per share.


FY 16 Financial Performance (Source: Company Reports)

The revenue grew on the back of changes in product mix and project share, and AVJ benefitted from the announcements made in prior periods that it would acquire the interests of joint venture partners in the ‘Argyle’, Sydney and ‘St Clair’, Adelaide projects. AVJ stock rose over 20.75% in the last six months (as of September 29, 2016), and has a strong dividend yield. We give a “Buy” recommendation on the stock at the current price of –  $0.65

AVJ Daily Chart (Source: Thomson Reuters)

Rio Tinto Limited

RIO Details
Launched new debt reduction program: Rio Tinto Limited (ASX: RIO) seem to have lately benefitting from the iron ore prices. The group lately launched a bond purchase plan for up to $3 billion to boost its liquidity position in order to further reduce their gross debt. This is a part of the RIO’s ongoing capital management and follows after the successful completion of $4.5 billion cash tender offers earlier this year. RIO is positioning itself to leverage the recovering iron ore prices outlook and a strong balance sheet would enable them to withstand iron ore prices volatility going forward. Having a decent dividend yield, we give a “Buy” recommendation on the stock at the current price of –  $51.90


RIO Daily Chart (Source: Thomson Reuters)

Amaysim Australia Ltd

AYS Details
Group closing subscriber base is in line with guidance: Amaysim Australia Ltd (ASX: AYS) reported statutory net revenue growth of 19.2% to $253.5m on FY15 and the underlying NPATA growth of 118.6% to $22.3m on FY15. AYS also reported group closing subscriber base of 966,000 in FY 16, including the amaysim and Vaya brands, which is in line with May 2016 guidance and ahead of prospectus forecasts (which did not include the Vaya acquisition).


FY 16 Financial Performance (Source: Company Reports)

Moreover, AYS has recently completed the acquisition of Australian Broadband Services which would offer AYS with the subscriber management technology for simplifying the complex process of setting up broadband connections. AYS stock rose over 29.17% in the last three months (as of September 29, 2016) and we give a “Buy” recommendation on this dividend yield stock at the current price of –  $2.22


AYS Daily Chart (Source: Thomson Reuters)

Altura Mining Ltd

AJM Details
DFS confirmed significant mining opportunity: Altura Mining Ltd (ASX: AJM) has reported the results of the Definitive Feasibility Study (DFS) on its Pilgangoora Lithium Project in Western Australia’s Pilbara region which showed a significant mining opportunity delivering substantial long term sustainable stakeholder value. The DFS results show that the project has a pre-tax Net Present Value (NPV) of $411 million over an initial 13-year mine life based on the current ore reserve estimate of 20.33 million tonnes.

Altura Pilgangoora Ore Reserve Estimate (0.4% Li₂O Cut-off Grade) (Source: Company Reports)

Life of Mine (LOM) cash costs of A$316 per tonne of spodumene concentrate, an attractive capital estimate of A$139.7 million including sustaining capital and a payback period of 1.8 years entail other highlights. In addition, the updated Ore Reserve Estimate for Pilgangoora Lithium Project totals 20.3Mt at 1.06% Li₂O and is classified entirely as a Probable Ore Reserve estimate. We give a “Buy” recommendation on the stock at the current price of –  $0.12
 

AJM Daily Chart (Source: Thomson Reuters)

Ziptel Ltd

ZIP Details
Efforts to revamp growth: Ziptel Ltd (ASX: ZIP) reported its total revenue increase of 53% to $762,388 in FY2016, as compared to the corresponding period last year. But, ZIP has reported the loss after tax of $14,009,805 as compared to loss after tax of $5,687,639 in FY2015, due to investment in the Zipt platform and mass user acquisition campaigns for ZIP in key markets. Notably, a large component of the loss is attributable to non-cash share based payments of $8,479,391. Therefore, the stock fell over 57.69% in the last six months (as of September 29, 2016). However, the anticipated deployment of the SpeedTalk application, the first enterprise application of the ZIP’s low bandwidth communications technology, would have an impact on the group’s overall performance going forward. Additionally, Zipt is selected by Samsung as a Marquee App for Tizen Developers to deliver Tizen version of Zipt for August 2016 handset launch. ZIP stock recovered over 13.8% in the last three months (as of September 29, 2016) and we give a “Speculative Buy” recommendation on the stock at the current price of –  $0.15


ZIP Daily Chart (Source: Thomson Reuters)

Mcgrath Ltd

MEA Details
Investing for growth: Mcgrath Ltd (ASX: MEA) announced for its AGM to be conducted on November 23, 2016. The group reported that its revenue grew 12% to $137m, while EBITDA is down 3% to $26.2m and the NPAT fell 7% to $14.6m. MEA has invested in costs to support future growth. In FY 16, the agent numbers increased by a total of 77 to 642.
 

FY 16 Financial Performance (Source: Company Reports)

Additionally, MEA is evaluating strategic acquisition opportunities and completed the acquisition of the Smollen Group (10 offices). MEA’s market share is growing in a highly fragmented market and expanding in all East Coast markets. Trading at a reasonable P/E, we give a “Buy” recommendation on the stock at the current price of –  $1.15


MEA Daily Chart (Source: Thomson Reuters)