Cleanaway Waste Management Ltd


CWY Details

·       Higher valuations:Cleanaway Waste Management Ltd (ASX: CWY) stock fell over 6.5% on October 26, 2016. On the other hand, CWY stock already surged over 45% in last three months (as of October 25, 2016) driven by its strong FY16 results. The group reported an underlying EBITDA growth of 22% to $281.3 million while EBIT rose 26% to $122.6 million. The group launched their first mobile app in August 2016 to enable residents to manage their household recycling and waste in a better way. The app also has information on how to minimize the waste they generate. However, we believe that the recent rally in the stock placed them at higher levels. CWY stock is trading at an unreasonable P/E.

·       Recommendation: We give an “Expensive” recommendation on the stock at the current price of $1.145
 
Ardent Leisure Group


AAD Details

·       Dreamworld Thunder River Rapid ride incident led to the stock pressure: Ardent Leisure Group (ASX: AAD) stock lost over 14.9% on October 26, 2016 as the group’s Dreamworld Thunder River Rapid ride led to four fatalities. The group has reached out to the grieved families to offer unwavering support. The group reported that Thunder River Rapid ride had finished its last mechanical and structural safety engineering inspection on September 29, 2016. But with this incident, the group intends to take more tight measures to ensure safety. We believe the recent stock fall is a temporary momentum while the stock generated 10.3% in the last three months (as of October 25, 2016).

·       Recommendation: We maintain a “Hold” recommendation on the stock at the current price of $2.00

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