Australasian Equities

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Australasian Equities

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Speculative

high

Bottle 2018 and more could follow Saracen Mineral Holdings (ASX:SAR) has announced a bumper full year result for 2018, to deliver one of the top results this reporting season. The year saw the company achieve key records – both operational and financial – and establish a clear pathway to producing 400,000 ounces a year. The balance sheet can support the growth aspirations with plenty of change. A dividend was not fourth-coming, as growth remains a key priority. Profit attributable to shareholders for

Greencross (ASX:GXL)

Speculative

high

Fat Prophets take a loss Integrated pet care player, Greencross (ASX:GXL) has had quite a tough year having reported a substantial drop in profits as the vet business saw lower visitation and higher costs. We also expect pressure from lower consumer spending down the road. The final nail in the proverbial coffin is that the company will be removed from the ASX 200 index which weighed on the shares in the near-term, recognising this, we take the opportunity to cut our

Fidelity India Fund (ASX:FIF)

Core

medium

Fat Prophets Take Profits India’s economy, and its markets, have had quite a solid run, having outpaced other Emerging and Developed Markets. However, there are rising risks in the near term from both domestic and external sources. In light of that, we believe this presents an opportunity to de-risk the portfolio and deploy profits elsewhere, thus we recommend Members SELL their holdings in The Fidelity India Fund (ASX:FIF). What’s New Since our last update of the Fidelity India Fund back in April, (FAT-AUS-870)

Ausdrill (ASX:ASL)

Speculative

high

Buying into Barminco Mining services company Ausdrill (ASX:ASL) has successfully raised $252 million via a share entitlement offer to its shareholders. The share entitlement was a one (1) new share for every 2.3 existing shares and had an issue price of A$1.47. Funds raised through the capital raising will be used to partly fund Ausdrill’s acquisition of the Barminco Group. The acquisition comes on top of the company reporting an excellent 2018 full year result. The following figure shows the combined

Orora (ASX:ORA)

Core

medium

Bulking back up As far as defensively positioned portfolio exposures go, we believe that packaging company Orora (ASX, ORA) continues to fit the fill on a number of levels. Underlying demand within the segment has remained strong, despite trade frictions. The company is also combatting cost pressures through productivity improvements, and technological investment. We have also remarked that a robust balance sheet would support further accretive acquisitions, and we did not have long to wait, with another deal announced a few

Silver Chef (ASX:SIV)

Special

medium

Calling time Silver Chef (ASX:SIV) shares have remained on the back foot over the past month, with no respite provided by the company’s full year results which were underwhelming. A recent disclosure that Chairman and founder Alan English has increased his holding to the tune of around $50,000 is one encouraging development, but putting that aside (and as per our mid-week alert last week) we have changed our rating on the company in the wake of the full year numbers, along

Collins Foods (ASX:CKF)

Core

medium

A family favourite In terms of defensive offerings, Collins Foods (ASX:CKF) has certainly been a favoured exposure within the Fat Prophets Portfolio. The share price of Australia’s largest KFC operator has increased steadily from a botched IPO a few years ago, with management growing earnings astutely both organically and through acquisition. We have long regarded the core KFC product as somewhat ‘recession proof’ and while Australia to date has been very ‘lucky’ in this regard, we do expect that Collins’ businesses will

Evolution Mining (ASX:EVN)

Speculative

high

Solid FY18 Evolution Mining (ASX:EVN) has followed up its cracker 2017 financial performance, with a solid result for 2018. The company reported a record underlying profit determined by a strong costs performance and a good underlying operational outcome, but partially offset by a lower realised gold price. Operating cash flow came in higher for FY18, allowing debt to be paid down for 2018 and a record dividend declared. The following table shows a summary of the 2018 financial result (EBITDA –

About these archived stock reports

These are archived Fat Prophets equity research stock reports and share analysis. They do not constitute current investment advice, financial product advice, or a recommendation to buy, sell or hold any financial product. They are provided for historical reference only, and reflect the market conditions, company information, forecasts and opinions available at its original publication date. The information may no longer be current or applicable. Past performance is not a reliable indicator of future performance.

This is general information only and does not take into account your objectives, financial situation or needs. Before acting on anything in this report, you should consider its appropriateness to your circumstances and seek advice from a licensed financial adviser.

DISCLAIMER Fat Prophets has made every effort to ensure the reliability of the views and recommendations expressed in the reports published on its websites. Fat Prophets research is based upon information known to us or which was obtained from sources which we believed to be reliable and accurate at time of publication. However, like the markets, we are not perfect. This report is prepared for general information only, and as such, the specific needs, investment objectives or financial situation of any particular user have not been taken into consideration. Individuals should therefore discuss, with their financial planner or advisor, the merits of each recommendation for their own specific circumstances and realise that not all investments will be appropriate for all subscribers. To the extent permitted by law, Fat Prophets and its employees, agents and authorised representatives exclude all liability for any loss or damage (including indirect, special, or consequential loss or damage) arising from the use of, or reliance on, any information within the report whether or not caused by any negligent act or omission. If the law prohibits the exclusion of such liability, Fat Prophets hereby limits its liability, to the extent permitted by law, to the resupply of the said information or the cost of the said resupply.

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Staff trading – Fat Prophets Pty Ltd, its directors, employees and associates of Fat Prophets may hold interests in many ASX-listed Australian companies which may or may not be mentioned or recommended in the Fat Prophets newsletter. These positions may change at any time, without notice. To manage the conflict between personal dealing and newsletter recommendations the directors, employees, and associates of Fat Prophets Pty Ltd cannot knowingly trade in a stock 48 hours either side of a buy or sell recommendation being made in the Fat Prophets newsletter. Staff trades are pre-approved by an appointed staff trading compliance officer to ensure compliance with the staff trading policy.

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About these archived stock reports

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