Sirtex Medical Ltd

SRX Details
· Subdued Trading Update for the first half of FY 17: Sirtex Medical Ltd (ASX: SRX) stock crashed over 37.2% on December 09, 2016 after the company provided a subdued trading update for the first half of FY 17. SRX has posted a lower than expected dose sales in the Americas and EMEA regions, and the worldwide first half dose sales growth is anticipated to be down, now in the range of 4-6% compared to growth of 15.7% in the prior corresponding period (pcp). SRX is investing ahead of its major clinical studies next year, therefore the constant currency EBITDA for the first half of FY 17 is expected to be in the range $30-32 million, which is a decline of 16% to 9% compared to the pcp. Moreover, for FY 17, the worldwide dose sales growth is expected to be in the order of 5-11% compared to growth of 16.4% achieved in FY16. The constant currency EBITDA for the FY 17 is expected to be in the range $65-74 million, a decline of 12% to no growth compared to FY 16. Additionally, the trading conditions are affected by the increased competition for patients with liver-directed therapies, a new drug approval in salvage metastatic colorectal cancer and due to the restrictions in reimbursement. However, the competitor drug seems to have an inferior survival rate compared to the that of SIR-Spheres while the product is popular with medical oncologists. Thus, the group’s oncology sales force is proactively marketing the benefits of the microspheres. Further, SIR-Spheres present a long-term opportunity but have a low market penetration to date. SRX is thus expecting improved second half and full year dose sales performances, irrespective of the results from the three major clinical studies that are due to report findings in the first half of calendar year 2017.

· Recommendation: The stock has fallen 19.13% in the last three months (as on December 08, 2016). Further, the Goldman Sachs group has recently ceased to be substantial holder of the group. It is to be worth noting that the stock had touched price as low as $16 sometime back but rebound with positive news around key product. Given the volatility, we give a ‘Hold’ recommendation at the current price of – $ 16.00

Crown Resorts Ltd

CWN Details
· Concerns over cash withdrawals restrictions: Crown Resorts Ltd (ASX: CWN) stock fell over 5.3% on December 09, 2016 on concerns of limited ATM cash withdrawals in Macau to be levied by Chinese administrators to curb illegitimate outflows. As per CWN, around a third of the group revenues get generated from overseas visitors but only some of these overseas visitors participate in international VIP gaming programs. On the other hand, CWN is continuing to improve and grow its portfolio of well-recognized, premium branded assets.

· Recommendation: CWN stock rose over 12.1% in last one month (as of December 08, 2016), while we give a “Hold” recommendation at the current price of – $ 11.40

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