Blackmores Limited

BKA Details

The Blackmores Limited (ASX: BKL) has announced that Chief Executive Officer and Managing Director Christine Holgate will leave Blackmores on 29 September 2017, after nine years of stint at the Australia’s leading natural healthcare company. Further, the board has asked Director Marcus Blackmore to return from sabbatical to step in as Interim CEO till the Board appoints a new Chief Executive Officer, and announced that Stephen Chapman will continue as Chairman after the new CEO has been appointed. Marcus Blackmore will continue as a Director of the company with an added responsibility as Brand President.

Recently, Blackmores has been appointed in a key leadership advisory role to the China Association for Quality Inspection (CAQI), a high-level non-profit Chinese organization with responsibility for product quality inspection. The recognition as Vice President Company of CAQI was fostered with the appointment of Peter Osborne, Blackmores Managing Director, Asia, as Vice Chairman of CAQI’s Advisory Committee, the first and only foreign citizen to hold a CAQI board position. Over the last one year, the stock has declined by 27.0%, and currently trading close to its 52-week low levels. However, given the unpredictable behaviors of Chinese buyers and impact on company’s financials going forward, we give an “Expensive” recommendation on the stock at the current market price of $99.41


BKL Daily chart; Source: (Thomson Reuters) 

Bega Cheese Ltd

BGA Details

Shares of Bega Cheese Limited (ASX: BGA) moved up 3.8%, after announcing the offer to eligible shareholders to acquire additional Bega Cheese shares under a Share Purchase Plan Offer (SPP Offer). Under the SPP, each eligible Bega Cheese shareholder (as at 7.00pm on 22 June 2017) will have an opportunity to subscribe for up to A$15,000 of new Bega Cheese shares, subject to scale back, without incurring brokerage or transaction costs. Eligible Bega Cheese shareholders are holders of fully paid ordinary shares in Bega Cheese and whose address on the share register is in Australia or New Zealand (provided that such shareholder is not in the United States or acting for the account or benefit of a person in the United States). The proceeds from the SPP will be used to improve Bega Cheese’s financial flexibility to take advantage of future growth opportunities in dairy and food. The SPP Offer aims to raise approximately A$37.5 million and is not underwritten. Further, the company may determine to raise a higher amount or decide to scale back applications under the SPP Offer at its absolute discretion.
The stock has moved up 51.0% over the past six months (as on July 03, 2017), led by robust results for H1FY17, and currently trading at elevated levels. We give an “Expensive” recommendation on the stock at the current market price of $5.92


BGA Daily chart; Source: (Thomson Reuters)

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