Primary Health Care Ltd

PRY details
· CEO being served with ASIC notice: Primary Health Care Ltd (ASX: PRY) stock lost over 4.75% on January 10, 2017 as their Managing Director and Chief Executive Officer, Mr Peter Gregg, got a Local Court attendance notice from the Australian Securities and Investments Commission (ASIC). CEO is facing two contraventions alleged by ASIC during his tenure at Leighton Holdings Limited. The allegations have been denied by Mr Gregg.

· Recommendation: PRY stock rallied over 10.2% in the last four weeks (as of January 09, 2017) but currently trading at higher levels. The group believes that they have strong long-term prospects given the rising Chronic conditions in Australia and across the globe. But rising costs would impact the margins. This coupled with the credibility of management could dampen the stock sentiment in the coming months. We give an “Expensive” recommendation at the current price of – $ 4.01

PRY presence (Source: Company Reports) 

Paladin Energy Ltd

PDN Details
· Restructure Proposal hurting the stock sentiment: Paladin Energy Ltd (ASX: PDN) stock crashed over 16.84% on January 10, 2017 at the back of the announcement about balance sheet restructuring proposal. The Restructure Proposal contemplates US$362 million (including outstanding 2017 Convertible Bonds and 2020 Convertible Bonds) to be exchanged into US$115 million of New Secured Bonds due 2022, with a 7% cash coupon; US$102 million of New 2024 Convertible Bonds, with a zero coupon and conversion price of US$0.0512/share (i.e. approximately A$0.07/share); US$145 million of PDN shares at A$0.05/ share; and any accrued unpaid interest to be exchanged 75%:25% into the New Secured Bonds and the New 2024 Convertible bonds, respectively. The Restructure Proposal is already supported by 57% of the 2017 Convertible Bond holders as well as 41% of the 2020 Convertible Bond holders. There has been no progress on the Langer Heinrich Mine stake sale.

· Recommendation: PDN stock lost over 37% (as of January 09, 2017) in the last three months and we believe this pressure in the stock to continue in the coming months. We give an “Expensive” recommendation on the stock at the current price of - $ 0.079

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