Japara Healthcare Ltd

JHC Details
· Weak bottom line dragged the stock lower: Japara Healthcare Ltd (ASX: JHC) stock fell over 5.9% on February 27, 2017 due to weak results from the group. The group’s net profit after tax fell over 9.9% to $14.6 million during the first half of 2017 performance as compared to $16.2 million in the prior corresponding period. The group’s Profke portfolio’s lower  than expected performance contributed to this weak performance. Further, occupancy issues led to this weakness.

· Recommendation: JHC stock fell over 8.2% in last one month (as of February 24, 2017) and we believe the pressure would continue. We give an “Expensive” recommendation on the stock at the current price of - $ 1.90
 

FY17 Performance (Source: Company Reports) 

Slater & Gordon Ltd

SGH Details
· Weak results impacted the stock sentiment: Slater & Gordon Ltd (ASX: SGH) stock crashed over 21.87% on February 27, 2017 impacted by the weak results. Slater and Gordon Lawyers (“SGL”) Australia Fee and Services Revenue fell 17.5% year on year (yoy) to $ 114.2 million during the first half of 2017, impacted by both PIL and GL. PIL witnessed pressure in the workers’ compensation practice especially in Victoria and Queensland. SGL UK Fee and Services Revenue lost 18% in local currency terms due to underperformance in SSP and GL while SGS lost 25% impacted by major contracts loss in SGS Motor. On the other hand, there is some improvement in key metrics including the cash flow and Earnings Before Interest, Tax, Depreciation, Amortisation and changes in the value of Work in progress (EBITDAW).

H1 FY17 Results (Source: Company Reports)

· Recommendation: SGH stock lost over 68.9% in the last six months (as of February 24, 2017). We give a “Hold” recommendation on the stock at the current price of – $ 0.12 

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