Two stocks that tanked on ASX - Trade Me Group Ltd and Ten Network Holdings Limited

Trade Me Group Ltd

TME Details
· Rising competition concerns: Trade Me Group Ltd (ASX: TME) stock fell over 4.56% on October 20, 2016 with a total fall of over 9.6% in the last four weeks (as at October 19, 2016). Subdued market sentiments along with concerns over the rising competition from other players is driving investors to book profits on the stock. Recently, management reported that despite witnessing a decent growth in listings across most of their regions, two regions are witnessing a dip in listings. Moreover, listings growth in certain sectors like Architecture, Banking, finance & insurance and IT are under pressure for the third quarter of 2016 as compared to the same period of last year.

· Recommendation: Despite the fall, TME stock is still trading at a slightly high P/E. Based on the foregoing, we give an “Expensive” recommendation on the stock at the current price of $ 4.60



Regional listings performance (Source: Company Reports) 

Ten Network Holdings Limited

TEN Details
· Ongoing bottom line pressure: Ten Network Holdings Limited (ASX: TEN) stock lost over 19.01% on October 20, 2016 at the back of lower than estimated full year results and softness in advertising market. The group generated a net loss attributable to members of $156.8 million for fiscal year of 2016 as compared net loss of $312.2 million in the prior corresponding period while underlying net loss attributable to members reached $31.5 million from a net loss of $49.4 million in the corresponding period of last year. TEN strengthened its balance sheet via issuance of shares to Foxtel from entitlement leading to net proceeds of $146.2 million. But the balance sheet was mainly boosted by a onetime event that is Out-of-Home operations sale which led to a non-cash gain of $23.1 million. Moreover, the group also reported ongoing pressure from its core TV advertising market while expects Television costs (ex-selling costs) to rise by mid-single digits in the 2017 financial year. TEN stock surged over 49.5% as of October 19, 2016 in the last three months.

· Recommendation: We believe that the stock is “Expensive” at the current price of $ 1.15

Revenue performance (Source: Company Reports)

Disclaimer
 
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376).The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd currently hold positions in:  BHP, BKY, KCN, PDN, and RIO. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.