Two stocks that stood high on ASX – Premier Investments Ltd and Mantra Group Ltd

Premier Investments Ltd

PMV Details
· Positive sentiments: Premier Investments Ltd (ASX: PMV) stock surged over 5.1% on November 15, 2016 driven by market’s positive sentiment. Various analysts including Credit Suisse and Citi have upgraded the ratings. The net profit after tax of $103.9 million in FY16 was up 17.9% on FY15 while total sales for Premier Retail were up 10.9%. The group’s brand Smiggle UK opened 40 new stores during fiscal year of 2016 with the total reaching 64. Even though the management reported a lower than estimated Brexit impact, the stores performance might still be impacted. Smiggle brand is also opening stores in Malaysia and Hong Kong, but the performance needs to be monitored given the volatile environment. The stock had fallen 21.3% in the last three months (as of November 14, 2016) given the volatile retail environment. The group will conduct its AGM on December 02, 2016.

· Recommendation: Despite the stock fall, PMV is trading at a slightly higher P/E while we give an “Expensive” recommendation on the stock at the current price of – $ 13.90

Mantra Group Ltd

MTR Details
· Management changes: Mantra Group Ltd (ASX: MTR) stock rose over 2.9% on November 15, 2016 as investors welcomed the company’s announcement on appointment of group’s Chief Financial Officer, Stephen Hobson. Stephen would join from mid-February 2017. On the other side, the group is positioning itself on a long-term basis to leverage the potential economic impact of Chinese travelers to Australia by 2025. The group’s Ala Moana Hotel in Hawaii finished transition this year while Mantra is seeking to acquire major assets in key locations. On the other side, the group got to manage Southport Central, a permanent rental property in one of the Gold Coast’s most established and advancing precincts which could trigger further investment opportunities in the permanent rentals market. Mantra Sydney Airport Hotel is expected to open by H1 FY2018 while Peppers Kings Square Hotel would open by H1 FY2017. Tribe West Perth, would open by H1 FY2018. Mantra’s first property in regional South Australia would finish by 2018.

· Recommendation: We maintain our “Buy” recommendation on the stock at the current price of – $ 3.20
 

Chinese Visitors to Australia (Source: Company Reports)

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