TPG Telecom Ltd

TPM Details
Raising capital to fund new spectrum acquisition:TPG Telecom Ltd (ASX: TPM) has successfully bid for 2x10MHz of mobile spectrum in the 700MHz band at the recent auction conducted by the Australian Communications and Media Authority (ACMA). For this, TPM has successfully finished institutional component of the Entitlement Offer and has raised or received the binding commitments covering over A$320 million out of the total A$400 million. The Retail Entitlement Offer is expected to raise over A$80.5 million.
 

FY 17 Guidance (Source: Company Reports)
 
Additionally, TPM expects the underlying EBITDA for FY 17 to be $820-830m, which the company has reaffirmed in its outlook. Meanwhile TPM stock has fallen 17.5% in the last six months as on April 27, 2017. Trading at a reasonable level, we give a “Buy” recommendation on the stock at the current price of $ 5.90
 

TPM Daily Chart (Source: Thomson Reuters) 

Vocus Group Ltd

VOC Details
Strong financial performance driven by acquisitions:Vocus Group Ltd (ASX: VOC) has disposed 16% relevant interest in Macquarie Telecom. The group, in the 1H 2017, has reported a 403.9% growth in the revenues from ordinary activities and delivered a 235.6% growth in the underlying net profit after tax. Strong demand for their products and the acquisition of Amcom in July 2015, M2 in February 2016 and Nextgen Networks in October 2016 contributed to the performance.
 

1H 17 Financial Performance (Source: Company Reports)
 
The group recently announced that executive director Michael Simmons has been retained to the permanent role of Chief Executive, Enterprise and Wholesale. Meanwhile, VOC stock has fallen 39.2% in the last six months as on April 27, 2017 and is now trading at lucrative levels.We give a “Buy” recommendation on the stock at the current price of $ 3.37
 

VOC Daily Chart (Source: Thomson Reuters) 

Australian Agricultural Company Ltd

AAC Details
Positive Property Revaluation:Australian Agricultural Company Ltd (ASX: AAC) has announced a $44.3m increase in the value of the company’s property portfolio at March 31, 2017 from $615.1m to $659.4m, following an independent valuation by CBRE Valuations Pty Ltd. The revaluation shows the increased activity and sale prices for recent property sales in Northern Australia. Meanwhile, AAC stock has risen 6.58% in the last three months as on April 27, 2017 and is trading at a decent level.We give a “Buy” recommendation on the stock at the current price of $ 1.72
 

AAC Daily Chart (Source: Thomson Reuters) 

Retail Food Group Ltd

RFG Details
Affirmed the FY17 underlying NPAT guidance:Retail Food Group Ltd (ASX: RFG) has reported growth in the reported Net Profit after Tax (NPAT) to $33.5m in the 1H 17. RFG has affirmed the FY17 underlying NPAT guidance of 20% growth. Moreover, RFG has finished the transformative Hudson Pacific Corporation (HPC) acquisition. The group granted nine new licenses in 1H 17 and the company has 78 international licensed territories. RFG has commissioned 138 new outlets across its domestic and international networks, closing the 1H17 with a global footprint of 2,556 outlets. Meanwhile, RFG stock has fallen 19.05% in the last six months as on April 27, 2017, and there seems to be room for growth based on recent updates. We give a “Speculative Buy” recommendation on the stock at the current price of $ 5.46
 

RFG Daily Chart (Source: Thomson Reuters) 

BHP Billiton Ltd

BHP Details
Ongoing strong production: BHP Billiton Ltd (ASX: BHP) in the nine months ended March 31, 2017 has achieved the record production at Western Australia Iron Ore (WAIO) and five Queensland Coal mines. After the 44 days of industrial action at Escondida, the copper production guidance has been lowered to between 1.33 and 1.36 Mt. The commissioning of the Escondida Water Supply project and the planned ramp-up of the Los Colorados Extension project are now expected in the September 2017 quarter.Due to the damage to third party rail infrastructure caused by Cyclone Debbie, metallurgical coal production guidance has been reduced to between 39 and 41 Mt.
 

Operational Performance (Source: Company Reports)
 
The full year production guidance is maintained for petroleum and energy coal. WAIO production guidance is narrowed to between 268 and 272 Mt (100% basis). Meanwhile, BHP stock has risen 6.04% in the last six months as on April 27, 2017. There has been some sector-driven shedding in price owing to commodity price movement. However, given the long-term prospects, we maintain a “Buy” recommendation on the stock at the current price of $ 23.72
 

BHP Daily Chart (Source: Thomson Reuters) 

Flight Centre Travel Group Ltd

FLT Details
Strengthening ecommerce presence and capabilities:Flight Centre Travel Group Ltd (ASX: FLT) has strengthened its global e-commerce presence and capabilities by acquiring a 24.1% interest in Bibam, an Argentina based travel and technology group with a strong presence in the on and offline leisure, corporate and wholesale sectors. Moreover, Bibam (Biblos América), which is Argentina's second largest travel group, owns and operates the Biblos brand and fast growing e-commerce player Avantrip.com.  FLT also formally completed Asia DMC Deal in association with Vietnam’s Thien Minh Group. Meanwhile, FLT stock has fallen 6.41% in the last six months as on April 27, 2017. We give a “Buy” recommendation on the stock at the current price of $ 31.45
 

FLT Daily Chart (Source: Thomson Reuters) 

    Infigen Energy Ltd

    
IFN Details
Third quarter production and revenue outcomes: Infigen Energy Ltd (ASX: IFN) in the third quarter FY 17 has posted a 11% growth in the production to 344 GWh or 35 GWh higher than the prior corresponding period (pcp) primarily due to better wind resource in New South Wales (NSW). The production sold was 9% or 27 GWh higher than the pcp due to better wind resource partially offset by a less favorable marginal loss factor at the Lake Bonney wind farms. 

Third quarter production and revenue (Source: Company Reports)
 
Moreover, IFN in the Q3 has posted 24% growth in the revenue of $49.2 million or $9.4 million higher than the pcp primarily due to higher merchant electricity prices in South Australia and NSW, and higher production. Additionally, the production and revenue outcomes for Q3 FY17 are consistent with IFN’s revised FY17 underlying EBITDA guidance of $147 million. There has been some sector driven volatility quite recently, but otherwise the stock has risen 32.4% in last one year (as at April 27, 2017). We give a “Speculative Buy” recommendation on the stock at the current price of $ 0.95
 

IFN Daily Chart (Source: Thomson Reuters)

Catapult Group International Ltd

CAT Details
Major upgrade to PLAYERTEK platform: Catapult Group International Ltd (ASX: CAT) has announced a major upgrade of its prosumer offering with the release of PLAYERTEK. The new PLAYERTEK by Catapult solution is available now for pre-order in the UK, and will also soon be available for pre-order in the US, Australia and some European countries. Shipments are expected to start in the first half of May 2017. Meanwhile, CAT stock has fallen 40% in the last six months as on April 27, 2017 and further fell 4.6% on April 28, 2017. On the other hand, the efforts on growth front look positive. For instance, CAT, through XOS Digital, has signed a league-wide video analytics deal with North America’s professional ice hockey league to provide analysis services to all NHL teams. Given the prospects and trading scenario, we give a “Speculative Buy” recommendation on the stock at the current price of $ 2.06
 

CAT Daily Chart (Source: Thomson Reuters) 

DroneShield Ltd

DRO Details
G7 Military Order:DroneShield Ltd (ASX: DRO) recently announced a sale of its DroneGun tactical drone jammer product to the military of a G7 country through the company’s distributor. DroneGun would be deployed for testing in the Middle East. The sale shows the better need for drone security systems globally and the rising acceptance of DRO as a leader in the industry, capable of delivering an immediate working and cost-effective solution to its end users, without the need for further development. The group has expressed about achieving its stated objective at the time of the IPO to ramp up its sales and engineering teams; and has no debt with a balance sheet of about $3.1m as at end of March 2017. In the last five days (as at April 27, 2017), the stock rose 16% but fell about 5% on April 28, 2017 while there has been an issuance announcement for new fully paid ordinary shares. We give a “Speculative Buy” recommendation on the stock at the current price of $ 0.37
 

DRO Daily Chart (Source: Thomson Reuters) 

Nearmap Ltd

NEA Details
Shipped the first completed full production HyperCamera2 unit: Nearmap Ltd (ASX: NEA) has shipped the first completed full production HyperCamera2 unit to the United States, achieving a major milestone for the company as it commences the commercial oblique and 3D imagery capture in that market. The group has recently reaffirmed FY17 EBITDA guidance of $4.5-6.5m and is on track to record its strongest trading quarter in the financial year-to-date with the addition of $3m of incremental Annualised Contract Value. The strong results were delivered by the Australian and US businesses. The stock has fallen 40.23% in the last six months as on April 27, 2017 offering a bargain opportunity to investors, andwe give a “Buy” recommendation on the stock at the current price of $ 0.52
 

NEA Daily Chart (Source: Thomson Reuters)

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