Two stocks touching low prices - Southern Cross Media Group and Reliance Worldwide Corporation

Southern Cross Media Group Ltd

SXL Details
· Stake sold by Nine Entertainment Co Holdings: Southern Cross Media Group Ltd (ASX: SXL) stock fell 13.1% on 30^th September 2016 after the company reported that Nine Entertainment Co Holdings (NEC) has sold its 9.99% stake in SXL while Vinva Investment Management became initial substantial holder with about 5% voting power. On the other hand, SXL reported a 5.1% growth in the revenue in FY 16 and 19.1% growth in the net profit after tax. SXL made an affiliation agreement with Nine Entertainment, renewed the affiliation agreement with Network Ten for NNSW, and executed long term agreement with the Australian Traffic Network. Meanwhile, SXL stock has already risen 43.36% in the last six months as on 29^th September, 2016.
· Recommendation: We believe that the stock is “Expensive” at the current price of – $1.58


FY16 Financial Performance (Source: Company Reports)

Reliance Worldwide Corporation Aus P Ltd

RWC Details
·Higher levels: Reliance Worldwide Corporation Aus P Ltd (ASX: RWC) stock fell 3.4% on 30^th September 2016 while the company released its annual report. RWC in FY 16 reported the statutory net sales of $98.3 million and EBITDA (before significant items) of $17.3 million. On the pro forma basis, the net sales grew 18% to $534.4 million on pro forma FY2015. Pro forma EBITDA (before significant items) increased 25% to $99.1 million over pro forma FY2015. But, RWC stock could face pressure in the coming months given the interest rates scenario impacting the group’s business in the USA.
·Recommendation: Trading at slightly higher levels, we maintain our “Expensive” recommendation on the stock at the current price of – $3.16


Pro forma & Statutory FY16 Financial Performance (Source: Company Reports)
 

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