Tiger Resources Limited


TGS Details

·       Weak financial performance hurt the stock sentiment: Tiger Resources Limited (ASX: TGS) witnessed a steep fall of about 30.6% in the last five days as the group came out with lower than estimated performance. However, the stock rebound with 4% rise at the closing on September 02, 2016. The group’s revenue from ordinary activities fell 32% to $56.556 million during the first half of 2016 against prior corresponding period. Sales volumes of payable copper metal lost 20% to 11,703 tonnes of copper cathode in the reporting period, from 14,598 tonnes (which accounts 13,286 tonnes of copper cathode and 1,312 tonnes of copper in concentrate from residual stockpiles) as compared to the same period last year. The realized copper price fell 17% to $4,701 per tonne during the period.
·       Recommendation: We give a “Speculative Buy” recommendation at the current price of $0.026
 

Financial performance highlights (Source: Company Reports)
 
Wellard Ltd


WLD Details

·       Rising cattle prices: Wellard Ltd (ASX: WLD) stock traded subdued when the market opened on September 02, 2016 as the stock is said to be removed from the S&P/ASX 300 Index effective from September 16, 2016 after market close. The stock otherwise fell 2% at the closing on September 02, 2016 while there has been a drop of 27.27% in just last five days (as of September 01, 2016) as the group came out with lower than estimated results. The group reported net profit after tax (NPAT) of $14.8 million as of 30 June 2016 while the gross profit reached $88.9 million as of June 2016. Moreover, given the ongoing margin compression caused by a shortage of cattle in Australia which led to rise in cattle prices, the management decided not to pay a dividend for FY2016. Investors with a risk profile can consider the stock given a possibility of improved conditions going forward.
·       Recommendation: We give a “Speculative Buy” recommendation on the stock at the current price of $0.235

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