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Two fully franked stocks that dipped - Automotive Holdings Group and Flight Centre Travel Group

Sep 15, 2016 | Team Kalkine
Two fully franked stocks that dipped - Automotive Holdings Group and Flight Centre Travel Group


 
Automotive Holdings Group Ltd


AHG Details
  • Boosting capital position:Automotive Holdings Group Ltd (ASX: AHG) stock fell over 5% on September 15, 2016 as the stock traded ex-dividend. The group finished acquisition of Mercedes Benz commercial vehicles dealership in Laverton, Victoria from Mercedes Benz Australia. This move from the group is in line with the automotive strategy. Moreover, the group is boosting its capital position via share purchase plan at $20 million. AHG stock surged over 23.1% (as of September 14, 2016) in the last three months and we believe the momentum would continue in the coming months.
  • Recommendation: Based on the foregoing, we give a “Buy” recommendation on the stock at the current price of $4.30
 
Flight Centre Travel Group Ltd


FLT Details
  • Investment in Ignite Travel Group: Flight Centre Travel Group Ltd (ASX: FLT) stock fell over 4.1% on September 15, 2016 as the stock traded ex-dividend. On the other hand, the group’s efforts of growing their business is ongoing and recently acquired a minority interest (49%) in the Gold Coast-based Ignite Travel Group (Ignite), to leverage their presence in both the B2B and B2C markets. Management reported that this investment would boost their business as well as generate new distribution opportunities to their suppliers while deliver new product options to FLT's customers. FLT stock generated over 15.6% in the last three months (as of September 14, 2016).
  • Recommendation: We maintain a “Hold” recommendation on this stock at the current price of $34.88


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