Santos Ltd

STO Details
·         Concerns over new framework for the Australian Domestic Gas Security Mechanism: Santos Ltd (ASX: STO) stock lost over 5.5% on April 27, 2017 as the Australian Government intends to issue a new framework for the Australian Domestic Gas Security Mechanism. The mechanism is said to be relating to curbing LNG exports if there is a domestic shortage. In a response, the group reported that they would supply more gas into the Australian domestic market than that purchased for its share of LNG exports. The group also reported that they would seek clarification from the Government on how the new policy would work in practice in order to understand the terms on which it is proposing to introduce this mechanism.

·         Recommendation: We give a “Buy” recommendation on STO stock at the current price of – $ 3.44

Alumina Ltd

AWC Details
·         Weakening sentiments: Alumina Ltd (ASX: AWC) stock lost over 3.3% on April 27, 2017 partly owing to weakening in stock sentiments and volatile commodity prices. On the other hand, AWAC (AWC holds 40% of each of the AWAC entities) reported that they improved their margins during the first quarter of 2017 driven by better alumina prices. AWAC’s production of alumina was 3.1 million tonnes. Accordingly, the group got US$74.6 million of dividends, distributions and capital returns, net of contributions from the starting of this year from AWAC, of which US$50.2 million was paid to shareholders as part of the 2016 final dividend.

·         Recommendation: We give a “Hold” recommendation on the stock at the current price of – $ 1.78

Ten Network Holdings Ltd

TEN Details
·         Heavy impairment charge impacted the stock: Ten Network Holdings Ltd (ASX: TEN) stock crashed over 19% on April 27, 2017 as the group faced a non-cash television license impairment charge of $214.5 million. Television revenue increased 2.1% year on year (yoy) to $341.4 million in the first half of 2017. Revenue market share improved to 25.2% during the period from 23.4% in the prior corresponding period (pcp). Given the heavy impairment charges, the net loss for the period attributable to members reached $232.2 million from net profit of $13.4 million in pcp.

·         Recommendation: Ten stock lost over 50.6% in the last three months (as of April 26, 2017) and we maintain an “Expensive” recommendation on the stock at the current price of $ 0.36


Financial Performance (Source: Company Reports)

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