APN News & Media Limited

APN Details
· Finished raising funds for Adshel acquisition: APN News & Media Limited (ASX: APN) stock fell over 18.3% on October 27, 2016. The group finished Entitlement Offer and raised over $254 million at a price of $2.45 per New Share (Offer Price). APN reported that their Institutional Placement was oversubscribed via which the group raised over $182 million with a take up rate of 99%. APN intends to use these funds for its Adshel acquisition for $268.4 million. The group reported that the Purchase price represents a historic EV/ EBITDA multiple of over 12 while the group knows the Adshel business would drive their growth. With this transaction, the group would enhance their exposure to the structural growth trend in the out-of-home industry while position themselves in a unique advertiser proposition with an integrated Radio / Outdoor / Mobile / Video offering. On the other hand, APN stock fell over 16.3% in the last three months (as of October 24, 2016) due to challenging advertising market in the news and media sector.

· Recommendation: We give an “Expensive” recommendation on the stock at the current price of $ 2.76

Syrah Resources Ltd

SYR Details
· Lower than estimated quarterly performance: Syrah Resources Ltd (ASX: SYR) stock fell over 9.16% on October 27, 2016 at the back of lowering sentiments on the September quarter performance. The group reported that their Balama Project is on track to start in the second quarter of CY2017. Balama Project budget is enhanced from US$175 million to US$185 million. On the other hand, the group reported that with the wet season approaching, plans are in place to minimize any potential interruptions to the construction schedule. But, attrition cells have been added to the Balama process flow sheet, which would enhance the average graphite concentrate grade, with no major impact on the capital forecast and minimal incremental operating costs. Jim Askew, chairman for the group assumed an Executive Chairman role post the resignation of the Managing Director Tolga Kumova. Shaun Verner is appointed as the Executive General Manager for Sales and Marketing while an updated senior management structure has been put in place.

· Recommendation: We remain positive on the Balama project and maintain our “Buy” recommendation on the stock at the current price of $ 3.57
 
Logistics overview (Source: Company Reports)

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