Bapcor Ltd


BAP Details

·       Boosting capital position:Bapcor Ltd (ASX: BAP) stock lost over 1.8% on September 28, 2016 while the group finished its capital raising. The group finished Institutional Placement of about 28.2 million ordinary shares at A$5.85 per share, to raise A$165 million. The group has announced for a proposed acquisition of Hellaby Holdings in order to enter the New Zealand market. On the other hand, the shares of BAP already rose over 45.7% in this year to date (as of September 26, 2016) placing the stock at slightly higher levels with a higher P/E.

·       Recommendation: We give an “Expensive” recommendation on the stock at the current price of $6.05
 
Western Areas Ltd


WSA Details

·       Positive nickel prices outlook: Western Areas Ltd (ASX: WSA) stock corrected over 3.2% on September 28, 2016 after rallying over 9.8% in the last one month (as at September 27, 2016). The rally has been otherwise supported by recovering nickel prices coupled with a positive outlook. Meanwhile, high grade nickel-copper sulphide mineralisation has been confirmed at Cathedrals, Stricklands and Investigators nickel-copper discoveries located on E29/638, wherein Western Areas Limited has 25% stake while St George has 75%. Recently, New fixed loop electromagnetic (FLEM) survey at Mt Alexander would enable the deep penetrating SAMSON system. The project has potential to detect conductive targets at depths of 500m or more. FLEM survey would cover the entire Cathedrals Belt where all shallow EM conductors drilled to date have been nickel-copper supplied mineralization. New exploration license has been granted east of the Cathedrals Prospect on the Cathedrals Belt trend.

·       Recommendation: We maintain our “Buy” recommendation on the stock at the current price of $3.06


FY15 vs FY16 NPAT (Source: Company Reports)

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