small-cap

Two stocks that slipped - Orocobre Limited and Sky Network Television Ltd

Sep 21, 2016 | Team Kalkine
Two stocks that slipped - Orocobre Limited and Sky Network Television Ltd


 
Orocobre Limited


ORE Details
  • Higher levels: Orocobre Limited(ASX: ORE) stock fell over 5.3% on September 21, 2016 while UBS group ceased to be the substantial interest holder. There are also concerns regarding a possible slowdown to the solid lithium prices rally. Further, there are changes to director’s (Robert Hubbard) interests. The shares of ORE made an outstanding return of over 162.6% in the last one year and started correcting over 14.3% in the last three months (as of September 20, 2016).
  • Recommendation: We give an “Expensive” recommendation on the stock at the current price of $3.73
 
Sky Network Television Ltd


SKT Details
  • Concerns over rising costs and declining ARPU: Sky Network Television Ltd (ASX: SKT) stock fell over 2.5% on September 21, 2016. There are concerns regarding rising costs of paid TV service. Moreover, the group’s ARPU fell to $78.63 in fiscal year of 2016 as compared to $79.54 in the prior corresponding period. The group’s advertising revenue has also been moderate, wherein the SKY division’s advertising revenue reached over $49.3 million against $45.2 million in the prior corresponding period while Prime division’s advertising revenue reached over $24.7 million in FY16 from $24.3 million in the prior corresponding period. Declining advertising revenue for TV continues to be a concern for the TV players. The shares of SKT performance have been volatile in the last three months which fell over 1.3% (as of September 20, 2016) and we believe this pressure in the stock could continue in the coming months.
  • Recommendation: We give an “Expensive” recommendation on the stock at the current price of $4.64


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