ALS Ltd

Industry: Industrials

ALQ Details

Recovering commodity prices drove the stock higher: ALS Ltd (ASX: ALQ) has surged in the last five days and generated a total returns of 13.22% (as at April 19, 2016) as well as increased by 3.3% on April 20, 2016 on the back of the recovery in commodity prices. On the other hand, ALQ reported that they would incur a non-cash impairment charge of over $330 million before tax for the financial year ending on March 2016 due to intangible assets in its oil and gas services business. Hence, we believe that the recent rally in the stock is a short term momentum. The group repaid over $183 million for short term and long term borrowings among the $317 million net proceeds raised earlier.
Recommendation: We give an “Expensive” recommendation on this stock at the current price of $4.69

Debt structure repayments (Source: Company Reports)

Select Harvests Limited

Industry: Consumer staples

SHV Details

Positive outlook issued: The shares of Select Harvests Limited (ASX: SHV) surged over 6.4% on April 20, 2016 partly due to the booming commodity markets coupled with recovering demand from Asia. SHV management also issued a positive crop outlook for 2016 and maintains its 13,700 tonne forecasts. The group forecasts to process over 20% of the crop and expects A$9.00/kg (0.70 USD) for the first half and a Spot price of over A$7.00/kg (0.73 USD).
Recommendation: SHV has an outstanding dividend yield but we believe that the stock is expensive at the current price of $5.36

Almond Volume Growth prospects (Source: Company Reports)

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