Independence Group NL

IGO Details
· Volatile gold prices hurting the stock sentiment: Independence Group NL (ASX: IGO) stock lost over 10.2% on January 13, 2017 due to volatility in gold prices. The group had completed the compulsory acquisition of remaining ordinary shares in Windward Resources Ltd. Recently, their Lake Mackay Joint Venture with ABM Resources showed positive drill results. The project’s 18 RC hole program finished at EL24915 as part of the reconnaissance drilling program on the Lake Mackay Project. The results indicated Grapple Prospect with anomalous mineralization intersected in 8 out of 11 holes. Several further intersections at the Grapple Prospect included 6m at 8.98 g/t gold, 23.5 g/t silver, 1.45% copper, 1.40% zinc, 0.26% lead and 0.15% cobalt.

· Recommendation: IGO stock rallied over 18.4% in the last three months (as of January 12, 2017). We give a “Hold” recommendation on the stock at the current price of - $ 4.16
 

Lake Mackay Project Location (Source: Company Reports) 

Southern Cross Media Group Ltd

SXL Details 
· Ongoing pressure in TV advertising market could be a concern: Southern Cross Media Group Ltd (ASX: SXL) stock fell over 3.9% on January 13, 2017 owing to pressure in media sector. On the other hand, SXL built a five-year television affiliation agreement with the Nine Network and is continuing their long-term relationship with the Ten and Seven Networks in other regional markets, mostly in northern New South Wales and Tasmania. SXL reported total franked dividends of 6.75 cents per share in 2016 against 6.0 cents per share in 2015. SXL reported a regional television revenue growth of 3.1% even though the regional TV advertising market lost 6.1%. SXL radio business advertising revenues rose 6.1% while national advertising revenue surged 7.9%. Despite this, we believe the ongoing pressure in their core TV advertising market could be a concern in the coming quarters.

· Recommendation: SXL rose 13% in the last four weeks (as of January 12, 2017) and is trading at slightly higher levels. We give an “Expensive” recommendation at the current price of - $ 1.46

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