Virtus Health Ltd

VRT Details
· Weak trading update hurting the stock sentiment: Virtus Health Ltd (ASX: VRT) stock lost over 17.7% on January 31, 2017 due to softness in trading update that entails weak IVF cycle volumes. For the second quarter of 2017, the activity in the Australian market performance is lower than the prior year levels as fresh cycle activity as reported by Medicare in H1FY17 in Virtus state markets declined by 6.0% against the same period last year. Virtus fresh cycle activity fell 7.2% on a like for like basis during the first half of 2017 in Australia. Rising competition with lower costs coupled with lower volumes impacted Victoria and NSW performance. The group expects a weaker performance in the second half of 2017 and continues to witness volumes and margin pressure in their TFC activities in Queensland.

· Recommendation: VRT stock fell over 20.69% in the last six months (as of January 30, 2017). Given the weakness, we give a “Hold” recommendation on the stock at the current price of – $ 5.11

Neometals Ltd

NMT Details
· December quarter highlights: Neometals Ltd (ASX: NMT) stock declined over 5.1% on January 31, 2017 with commodity price fluctuation. On the other hand, the group reported that they finished Beneficiation plant primary and secondary DMC circuit construction at their Mt Marion Lithium Project. For the Lithium Hydroxide project, the study progressed with Mineral Resources for determining feasibility of producing 20,000tpa. For Barrambie Titanium Project, Titanium test work finished while Process design improvements were identified and successfully tested. The group has a solid cash and restricted access term deposits of $61.28 million.

· Recommendation: NMT rallied over 16.4% in the last four weeks (as of January 30, 2017) and we believe the momentum to continue despite some short-term pressures. We give a “Buy” recommendation on the stock at the current price of – $ 0.37

Project Locations (Source: Company Reports)

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