Origin Energy Ltd


ORG Details

• Management changes:Origin Energy Ltd(ASX: ORG) stock surged over 5.46% on September 09, 2016 driven by the oil prices. On the other side, the group announced for the retirement of Mr Grant King while reported that they have appointed Mr Frank Calabria as their next Managing Director and CEO, who is serving as CEO of Origin's Energy Markets Business. He would start serving his role after October 19, 2016. Meanwhile, Norwest Energy reported for their Sale and Purchase Agreement (SPA), Change of Title and Change of Operator documentation for Production Licence L14 (L14) being submitted to the Department of Mines and Petroleum for approval. L14 comprises Jingemia Oil Field, and Origin is its current operator from December 2012.
• Recommendation:We give a “Buy” recommendation on the stock at the current price of $5.41

 

Location of L14 – Jingemia Oil Field (Source: Company Reports)
 
Australian Pharmaceutical Industries Ltd


API Details

• Growing penetration and market share:Australian Pharmaceutical Industries Ltd(ASX: API) stock surged over 6.1% on September 09, 2016.  The group’s products are well placed to leverage the rising demand and accordingly their gross profits are improving on a year on year basis. Moreover, API is targeting to enhance their presence to more than 450 stores by fiscal year of 2017. To sustain the brand value, API is constantly focusing on innovation platform and continuously targeting their end customer segments. API intends to maintain at least 20 stores/year growth and has only 5% of total footprint, indicating their potential market opportunity. API Priceline Pharmacy is the leading health & beauty brand and was able to deliver a growth better than the average industry growth. The group’s Priceline Pharmacy Beauty segment generated a MAT growth of 8.6% as compared to the overall market growth of +7.6% while Priceline Pharmacy health segment delivered a MAT growth of 12.5% against the total growth of 8%. API stock started recovering over 5.8% in the last five days (as of September 09, 2016) and we believe investors have the opportunity to leverage the current levels in the stock.
• Recommendation:We give a “Speculative Buy” on this stock at the current price of $1.835

 

Indicative shareholder returns through network growth (Source: Company Reports)

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