Vita Group Limited

Expects to exceed guidance for H1FY18:Vita Group Limited’s (ASX: VTG) stock rose 13.75% on January 10, 2018 after the company announced the expectation to exceed guidance for H1FY18. The company previously forecasted EBITDA in the range $16 million to $18 million for the six months to 31 December 2017. VTG now expects EBITDA of around $20 million. This is due to the focus on cost control, along with robust Christmas trading in its retail channel, supported by an earlier than expected relaxation on allocations of iPhone 8 and iPhone X inventory. Moreover, for FY18, VTG expects to deliver EBITDA in the range $38 million to $43 million. The company was originally expecting EBITDA for FY18 to be between $36 million to $43 million. Given the volatile nature of the stock while an improvement is seen lately, we give a “Hold” recommendation on the stock at the current price of $1.82
 

Syrah Resources Limited

Some derailing of sentiments: Latest update from Louisiana facility has sent Syrah Resources Limited’s (ASX: SYR) stock moving down by 5% on January 10, 2018. The group is seeking to build and operate a natural graphite processing facility in Louisiana to produce inert battery anode material (BAM), a precursor product for the Lithium-Ion Battery. It has progressed detailed design, site selection, permitting, and commercial supply negotiations for the Facility, and long-time equipment orders are already in place. Air and water permit applications have also been submitted to the Louisiana Department for Environmental Quality for compliance purposes. The group also got in touch with South Tangipahoa Parish Port Commission for a preferred site selected at Port Manchac.

However, the group has announced that the BAM facility is no longer suitable for its preferred site at Port Manchac. This has derailed confidence of few investors. While the group is receiving options on alternative sites and is determined to have first commercial material in Q4 2018, it will be prudent to “Hold” the stock at the current price of $4.53

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