Codan Ltd

CDA Details
· Positive guidance drove the stock higher: Codan Ltd (ASX: CDA) stock surged 10% on November 25, 2016 driven by positive guidance for six months ended at December 2016. The group reported an Underlying net profit after tax forecast in the range of $20 million to $22 million for the first half of 2017.  This better guidance is driven by solid demand for their GPZ 7000® gold detector in Africa, which is better than forecasted in October. CDA expects this ongoing demand even for November. The group reported a 76% rise in $74 million as compared to the prior corresponding period. Metal Detection generated $44 million of sales while Radio Communications delivered $27 million. Tracking Solutions generated $3 million during this period. The group’s Radio Communications sales performance was mainly contributed from a major contract they won last year. On the other hand, the group does not expect a similar solid performance for Radio Communications even for second half. Moreover, the recent stock rise placed them at higher levels and P/E.

· Recommendation: We give an “Expensive” recommendation at the current price of $ 1.76

Ardent Leisure Group

AAD Details
· Dreamworld Safety Audit Update: Ardent Leisure Group (ASX: AAD) stock surged over 4.4% on November 25, 2016 as the group updated about the Dreamworld Safety Audit. Management reported that they even conducted safety review for all their Dreamworld and WhiteWater World rides, slides and operations. Ardent is trying to undertake all measures to improve their safety measures and their ongoing audits might reiterate their confidence on their brands. The group reported an ongoing program of capital works at Dreamworld, like inviting contractors to return to the Park, while work started on construction of the Lego Concept Store and the Lego Store which are on track to open before Christmas. Tiger Island Stage 2 work is also on track and would finish soon. AAD stock fell over 27.7% in the last three months (as of November 24, 2016) owing to the recent Dreamworld tragedy.

· Recommendation: We give a “Hold” recommendation on the stock at the current price of $ 2.15

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