Warrnambool Cheese & Butter Factory Co. Holdings Ltd

WCB Details
· Takeover bid from Saputo lifted the stock sentiment: Warrnambool Cheese & Butter Factory Co. Holdings Ltd (ASX: WCB) stock rallied over 24.8% on January 30, 2017 driven by the announcement about Saputo takeover offer. Saputo Dairy Australia intends to make a cash off-market takeover offer of $8.85 per WCB share. WCB formed Independent Board Committee ("IBC") to review the takeover process, and IBC believes that the offer is fair and reasonable. The group benefited from the raw milk cost which was realigned with market conditions since July 01, 2016, and accordingly would see the benefits from the second half of 2017 results.

· Recommendation: The shares of WCB rallied over 8.7% in the last three months (as of January 27, 2017); and with the recent rally, the stock is trading at higher levels. We give an “Expensive” recommendation on the stock at the current price of – $ 8.85 

Bellamy's Australia Ltd

BAL Details
· Slight bullish momentum post heavy fall:Bellamy's Australia Ltd (ASX: BAL) stock recovered over 2.5% on January 30, 2017 while final interest notice is released for Ms Laura McBain. The stock fell over 66.4% in the last three months (as of January 27, 2017) impacted by lower sales and rising competition from non-brands in China leading to pricing impact. Moreover, Bellamy’s stock was under a trading halt during Christmas period in December, and resumed trading this month. Adding to these concerns, Ms Laura McBain has resigned as the director of the Company. Moreover, IMF Bentham proposed to fund the claims related to a possible misleading or deceptive conduct by the group regarding their trading prospects and future earnings performance of the group during April 2016 till December 2016. Slater & Gordon Lawyers proposed the class action.

· Recommendation: We give a “Hold” at the current price of – $ 4.03

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 currently hold positions in:  BHP, BKY, KCN, PDN, and RIO. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.