• Cash NPAT improvement: FlexiGroup Limited (ASX: FXL) stock fell over 4.6% on September 08, 2016 as the stock traded ex-dividend. The group was able to improve its cash NPAT by 8% year on year (yoy) to $97.0 million despite tough market conditions in Australia. FXL reported a volumes growth of 19% while receivables rose 47% as compared to the same period of last year. The group witnessed a solid portfolio income growth of 16% to $396.4 million and reported a fully franked final dividend of 7.25 cents per share for FY16. FXL witnessed rise in momentum in the Cards business, and accordingly, signed a major contract with Flight Centre. Despite short term volatility, we believe FXL has more upside for growth. The stock has an outstanding dividend yield.
• Recommendation: We give a “Speculative Buy” recommendation at the current price of $2.29

• Core Nova project at hand:Independence Group NL (ASX: IGO) stock fell over 6.1% on September 08, 2016 due to sentiments around commodity prices and sell-off activity in the sector. On the other hand, the group’s core Nova project’s construction is on time and on track while the first concentrate is forecasted by December 2016. The Project execution is on track while project value enhanced via two optimisation studies. The group is focusing to generate long term operational benefits while Long Island study improved productivity at Jaguar. IGO holds a decent cash of A$46.3M for a debt of A$271.0M at year end. IGO stock rallied over 25.15% in the last six months (as of September 07, 2016).
• Recommendation: We give a “Hold” recommendation on the stock at the current price of $3.88

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