Galaxy Resources Ltd

GXY Details
·         Reviving sentiment on Lithium: Galaxy Resources Limited (ASX: GXY) stock surged over 1.12% on March 09, 2017 after falling over 12.75% in the last five days (as at March 08, 2017) as some concerns prevailed owing to rising supply from Lithium miners. On the other hand, the demand of Lithium is also considered to be improving. Lithium ion battery is forecasted to grow at over 9% CAGR by 2024, reaching a value of $53 billion by the end of the forecasted period. On a company specific update, GXY recently completed second shipment of Lithium Concentrate.

·         Recommendation: GXY stock rallied over 12.7% in the last six months but fell over 20.5% in the last one month (as of March 08, 2017).We give a “Hold” recommendation on the stock at the current price of – $ 0.45

Qube Holdings Ltd

QUB Details
·         Rise in underlying NPAT: Qube Holdings Ltd (ASX: QUB) stock rallied over 4.7% on March 09, 2017. The group’s underlying net profit after tax attributable to shareholders (NPAT) surged over 19% to $62.1 million in the first half of 2017. The group boosted their capital position for fund their acquisition and accordingly raised a $306 million placement to the Canada Pension Plan Investment Board (CPPIB) while raised over $305 million via the issue of ASX listed Subordinated Notes (Subordinated Note). Meanwhile, QUB reported a statutory revenue rise of over 10% to $755.0 million. On the other hand, the group’s statutory profit after tax attributable to shareholders fell over 2% to $47.8 million impacted by many non-recurring items during the period due to the Patrick acquisition. Moreover, the group forecasted for minimal earnings in FY 17 from Moorebank and its investments in Quattro and TQ Holdings as these assets are at the early stages of their development. Even though the group reported an underlying revenue rise of about 10% to $757.8 million, the underlying EBITDA lost about 1% to $137.8 million.

·         Recommendation: QUB Holdings stock is currently trading at a higher level and we give an “Expensive” recommendation on the stock at the current price of – $ 2.47
 

Cashflow and Funding (Source: Company Reports)

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