Audio Pixels Holdings Ltd

AKP Details
· Partner delivered half structure MEMS devices ahead of the schedule: Audio Pixels Holdings Ltd (ASX: AKP) stock rallied over 12.65% on January 25, 2017 as the group released its quarterly updates along with integration stage update. AKP’s fabrication partner, Tower Semiconductor reached a major milestone of making the initial delivery of half structure MEMS devices, ahead of the schedule. Going forward, Tower Semiconductor planned several interim delivery milestones. The group recently reported that they will commence MEMS integration with ASIC once fully functional MEMS devices are received. The group’s cash at hand fell to $5.084 million as of December quarter of 2016 against their earlier quarter. The group estimates total cash outflows of $1.2 million for the next quarter.

· Recommendation: AKP stock lost over 62.88% in the last six months (as of January 24, 2017) and we believe this weakness would continue in the coming months till the group is able to demonstrate its potential. We give an “Expensive” recommendation on the stock at the current price of - $ 13.80

Alumina Ltd

AWC Details
· Alcoa’s strong fourth quarter earnings lifted the stock sentiment: Alumina Ltd (ASX: AWC) stock rallied over 10.6% on January 25, 2017 driven by the solid fourth quarter earnings update by Alcoa. AWC holds 40% of each of the AWAC entities that form a part of the Alcoa alumina business segment. As per the update, ongoing rising API prices have lifted alumina margins. Even though AWAC’s production of alumina reached 3.1 million tonnes, which is lower than earlier quarter, bauxite production from wholly owned mines and equity interests rose by 6% year on year (yoy) to 11.8 million bone dry tonnes. AWC even got US$57.3 million of dividends, distributions and capital returns from AWAC in the quarter of which $48.0 million was reinvested in AWAC. The group got a total of US$232.8 million from AWAC for the full year and received $15.4 million of distributions in January 2017 relating to the fourth quarter of 2016 profit. The group has a net debt of over US$84 million at the end of December 2016.

· Recommendation: AWC stock rallied over 40.3% (as of January 24, 2017) in the last six months and we believe the momentum to continue. We give a “Hold” recommendation on this dividend yield stock at the current price of – $ 2.04

Alcoa Corp’s segment highlights (Source: Company Reports)

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