NetComm Wireless Ltd

NTC Details
·         Weak performance: NetComm Wireless Ltd (ASX: NTC) stock lost over 4.3% on March 10, 2017 leading to a total fall of about 23% in the last five days. The group reported an NPAT loss of $1.7 million in the first half of 2017 and delivered a limited operating revenue rise of 1.2% to $47.0 million over 1H16. M2M & Fixed Wireless revenue surged 16.4% to $36.3 million during the period. Moreover, EBITDA adjusted for cumulative growth investments surged 40.5% to $12.5 million. Meanwhile, NTC got a major US fixed wireless contract in August last year. Revenue from this contract is forecasted to ramp up in FY18 as the US telecommunication company rolls out its fixed wireless solution. This coupled with multiple global M2M opportunities and the ongoing rollout of the Ericsson/nbn Fixed Wireless solution is expected to lead to a solid revenue and earnings growth from FY18.

·         Recommendation: NTC stock lost over 53.8% in the last six months (as of March 09, 2017) and we give a “Buy” recommendation on the stock at the current price of - $ 1.35

Metals X Ltd

MLX Details
·         Outstanding top line growth: Metals X Ltd (ASX: MLX) stock fell over 1.85% on March 10, 2017 leading to a total decline of over 9% in the last five days alone. The group reported an outstanding revenue rise to $128 million in the half year ended at December 2016 as compared to $36.4 million in the prior corresponding period. Net profit after tax surged to $145.2 million during the period from $0.8 million in half year ended at 2015. The group demerged the gold division and this was finished in the last quarter of 2016, to enhance their focus on base metals. The group also has a solid balance sheet and has no debt with a cash and working capital of $115 million.

·         Recommendation: MLX stock rallied over 22.7% in the last three months (as of March 09, 2017) and we remain bullish on the stock despite volatility. We give a “Buy” recommendation on the stock at the current price of – $ 0.79 

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