• Buyback efforts would further drive the stock performance: Platinum Investment (Asset) Management Limited (ASX: PTM) stock surged over 9.6% on September 14, 2016 driven by Buyback efforts. The group reported that they would start an on-market share buy-back for up to 10% of their issued share capital or over 58.7 million ordinary shares over up to the next 12 months. The group intends to leverage the subdued levels of their stock which fell over 19.2% in the last four weeks (as of September 13, 2016) as they reported a lower than estimated financial performance. But the recent buyback announcement indicates management confidence on their stock price who clearly stated that they would buy back shares only at a major significant discount to underlying value. The group’s buy-back program would take funds from their current cash flows. Meanwhile, PTM stock is available at a very reasonable valuation with a relatively cheap P/E.
• Recommendation:We give a “Buy” recommendation on the stock at the current price of $5.35

• Decent performance and strong dividend yield: FlexiGroup Limited (ASX: FXL) stock surged over 3.67% on September 14, 2016. The group’s revenues jumped 16% to $396 million while net profit after tax (NPAT) fell 39% to $50 million for full year 2016. On the other side, consumer confidence in Australia seem to have improved boosting the stock to some extent. Australia's Westpac-Melbourne Institute consumer confidence index delivered a rise of over 0.3% to 101.4 for September 2016 as compared to the 101.0 level in August 2016, which is a rise for the second consecutive month. Even ANZ-Roy Morgan Australian Consumer Confidence improved this week, which reported an increase of 3.3% to 118.1. Meanwhile, FXL stock recovered over 18.3% in the last three months (as of September 13, 2016).
• Recommendation:We remain bullish on FXL and reiterate our “Speculative Buy” recommendation on the stock at the current price of $2.25

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