Two stocks that got hammered on ASX – Vocus Communications Limited and Bellamy's Australia Ltd

Vocus Communications Limited

VOC Details
· Management changes: Vocus Communications Limited (ASX: VOC) stock fell over 3.3% on November 01, 2016. The group finished their acquisition of Amcom while merged with M2. VOC has also completed the acquisition of Nextgen Networks. VOC generated a revenue rise of 455% while underlying EBITDA surged 318% for FY16. The group reported a final dividend of 8 cents, leading to a total of 17.5 cents in dividends per share for the year. On the other hand, the stock has been under pressure as the group’s board members James Spenceley and Tony Grist resigned. Management has faced differences during the integration of Vocus and M2 merger.

· Recommendation: We give an “Expensive” recommendation on the stock at the current price of $ 5.52

Bellamy's Australia Ltd

BAL Details
· Rising opportunity: Bellamy's Australia Ltd (ASX: BAL) stock fell over 3.6% on November 01, 2016 post a total fall of over 11.8% in the last five days alone. The recent efforts of China’s government on unofficial goods coupled with rising competition concerns have impacted the stock sentiment. On the other hand, China’s child policy coupled with rising population in Asia and Australia are expected to drive the market opportunity for the group. BAL revenues surged 95% to $244.6 million while EBIT enhanced 342% to $54.3 million for FY16. Rising brand awareness, e-commerce business and reseller customer activations drove the group’s China/HK revenues by 331% during the year.

· Recommendation: We give a “Hold” recommendation on the stock at the current price of $ 10.96

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