• Solid first half of 2017 performance drove the stock higher: Sigma Pharmaceuticals Limited (ASX: SIP) reported a revenue rise of over 28.1% year on year (yoy) to $2.15 billion for the first half of 2017 while the EBIT surged over 17% yoy to $48.4 million. ROIC rose over 15.2% to 15.9%. The group’s Non-PBS earnings growth is ongoing which delivered over 50% rise while other revenue surged 24.2% to $39.2m. The brand compliance contribution to supplier rebates, ongoing merchandising income growth coupled with other services based income contribution drove the other revenue rise.  Given the solid 1H17 results, SIP stock surged over 11.26% on September 08, 2016. In fact, the stock already rallied over 34.3% during this year to date (as of September 07, 2016), and with this rise we feel that the stock is at slightly higher levels.
• Recommendation: We give an “Expensive” recommendation on the stock at the current price of $1.285

• Delivered second high speed support vessel to royal navy of Oman on time: The shares of Austal Limited(ASX: ASB) rose over 3% on September 08, 2016 as the group reported that they delivered second high speed support vessel to royal navy of Oman. In May 2016, ASB delivered the RNOV Al Mubshir (S11), while the RNOV Al Naasir (S12) is the second of two 72-metre High Speed Support Vessels (HSSV’s) that is delivered to the Royal Navy of Oman under a US$124.9 million design, construct and integrated logistics support contract. The RNOV Al Mubshir is now operating in the Gulf of Oman and Arabian Sea. ASB stock surged over 26.8% in the last four weeks (as of September 07, 2016). Given the group’s strong track record of delivering projects on time coupled with ongoing contract wins, we believe ASB stock has more room for growth.
• Recommendation: Based on the foregoing, we give a “Hold” recommendation on this dividend yield stock at the current price of $1.535

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.