Two stocks that rose on ASX – Evolution Mining and Pact Group

• Update on the dividend prior announcement:Evolution Mining Ltd (ASX: EVN) stock rose over 6.3% on 5^th September 2016 after the company gave the update to the previous announcement related to the dividend (DRP Price). The DRP Price has been calculated after the close of the 5 day VWAP period on 2^nd September 2016. The total dividend amount is AUD 0.02, payable on 23^rd September 2016. EVN had earlier indicated about it plans to double the dividend payout policy to 4% of the revenue as the company produces more gold and reduces its output costs. In addition, EVN has raised A$311 million in the institutional component of the Entitlement Offer. The Retail Entitlement Offer was said to open on 1^st September 2016 and close on 14^th September 2016. On the other hand, EVN stock has risen 34.63% in the last six months as on 2^nd September, 2016.
• Recommendation: We give an “Expensive” recommendation on the stock at the current price of $2.39

• Acquisition of Australian Pharmaceutical Manufacturers:Pact Group Holdings Ltd (ASX: PGH) stock rose 3.5% on 5^th September 2016 after the company announced that it has entered into an agreement to acquire specialty co-manufacturer, Australian Pharmaceutical Manufacturers for cash consideration of about $90 million - $75 million and a share issue of $15 million. With this move, the group would expand in specialised co-manufacturing. The group is funding this acquisition by bank debt. Meanwhile, PGH stock is trading close to its 52-week high price and at a higher P/E.
• Recommendation: We believe that the stock is “Expensive” at the current price of $6.27

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