Bega Cheese Ltd

BGA Details
· Concern over oversupply of dairy products: Bega Cheese Ltd (ASX: BGA) stock lost over 16.8% on October 25, 2016 as the group in their AGM cited for a volatile environment in prices and a possible recovery on this front in the coming year. The group reported that the global supply and demand continued to be out of balance. This may be at the back of production rise especially in Europe coupled with a slowdown in demand from major dairy importer, China. Sanctions have also been curbing supply from several exporting dairy regions into the world’s second major dairy importer, Russia. This in a way has affected dairy commodity prices. Further, major competition in Australia market also added to the farm gate milk prices pressure. As a result, earnings growth for FY 2017 does not look to be promising while there are challenges in dairy nutritionals.

· Recommendation: We give an “Expensive” recommendation on the stock at the current price of $ 5.40
 

Volatile milk price environment (Source: Company Reports) 

Freelancer Ltd

FLN Details
· Lower than estimated quarter update led to the stock fall: Freelancer Ltd (ASX: FLN) stock fell over 5.7% on October 25, 2016 impacted by the group’s lower than estimated quarter update. The group generated cash receipts rise by 31% year on year (yoy) to $12.7 million for the third quarter of 2016 and 47% year to date growth. However, weak revenue from Escrow.com led to the lower than estimated performance impacted by the bubble in the Chinese domain name market, which is non-core revenue for the group, On the other hand, the group’s job volume surged 47.9% yoy in the third quarter of 2016 while liquidity surged to 73.8% of projects being bid on within 60 seconds as compared to 70% during the quarter.  Moreover, the group’s Chinese domain is a non-core revenue stream while its core revenue streams are going strong.

· Recommendation: We give a “Buy” recommendation on the stock at the current price of $ 1.23
 
Jobs and cumulative jobs growth (Source: Company Reports)

Disclaimer
 
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376).The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd currently hold positions in:  BHP, BKY, KCN, PDN, and RIO. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.