Australasian Equities

Equity Research
Archive
Australasian Equities

Sample Reports | Old Reports | Not Current

Speculative

high

If Langer Heinrich can’t cut it get out The uranium price has been on a downward trend since it peaked in 2007 at US$136 per pound. Since that peak, the industry as a whole has battled falling prices and shifting social attitudes. Given the capital reconstruction completed under a Deed of Company Arrangement while the company was in voluntary liquidation and our subdued outlook for uranium we recommend exiting the stock. Despite operating an efficient mine in Langer Heinrich, Paladin Energy was

James Hardie (ASX:JHX)

Core

high

Building Blocks for Growth Australian-listed shares of fibre-cement leader James Hardie Industries (ASX:JHX) have made modest gains to date in 2018, building on the sharp recovery from the lows of 2017 visited in October. The appreciation in the share price has been supported by sales growth, margin improvements and a relatively optimistic outlook. The company also announced the completion of its acquisition of Europe-based Fermacell in early April. Strategically, we view the Fermacell as a good fit and agree with management that

Telstra (ASX:TLS)

Core

medium

Still in the Doghouse Telstra (ASX:TLS) shares are still in the doghouse with investors, as the shares have continued to underperform in the wake of the revision to its dividend policy announced last August. Also weighing on shares is the significant earnings impact from the NBN roll out and potential tax changes to franking credits if the Labour party wins the next election. We would argue however that the correction in the shares has been excessive and sets the stage for

IMF Bentham (ASX:IMF)

Speculative

medium

Still A Strong Case Global Litigation Financier, IMF Bentham (ASX:IMF) recently released its First Half of 2018 results numbers which seems to have disappointed the market as the shares have been drifting down since its release in late February. The results this time around highlighted the issues of its legacy business model which runs the risk of lumpy returns. Nevertheless, the company is making good progress in its transition into a superior business model with lower risk via a different funding

AusCann (ASX:AC8)

Speculative

high

High Hopes for a Pot of Green Gold A budding trend that has caught our attention a while back is the increasing global acceptance of medical, and even recreational, use of cannabis. Domestically, the legislative environment is also starting to look increasingly favourable to local growers and one of the standouts that fell under our crosshairs from our special report on the medical marijuana sector was AusCann Group Holdings (ASX:AC8). After meandering for much of 2017 the shares have surged this year,

Vocus Communications (ASX:VOC)

Speculative

high

Plotting a slightly different course We re-added Vocus Communications (ASX:VOC) to the portfolio around six weeks ago, taking the view that the an inflection point had been reached in the stock, with a senior management refresh underway, and a number of restructuring initiatives on the horizon. One of our beliefs was that the company would also be able to strengthen its balance sheet with the divestment of the company’s business in New Zealand. As it has transpired the company has shelved

Blackmores (ASX:BKL)

Speculative

medium

Getting Closer to our Strike Zone Health Supplement player Blackmores (ASX:BKL) released a trading update this morning covering its cumulative nine-month (9M) performance for fiscal 2018 as well as its most salient updates. We have avoided providing a buy recommendation on the shares previously, given lofty valuations but we are revisiting the case as we believe that the shares are getting closer to our strike zone. Recap and What’s New It has been about 3 months since our last coverage of Blackmores (ASX:BKL)

AWE (ASX:AWE)

Speculative

high

Mitsui has sung Mitsui & Co (Mitsui) has declared its takeover offer for AWE (ASX:AWE) to be free of all conditions. With Mitsui declaring its offer unconditional, AWE shareholders who have accepted the offer will now receive the consideration. In FAT-AUS-867, we recommended participating Members who hold AWE, accept the offer. The following figure shows the location of the company’s assets: Source: AWE (ASX:AWE) On 4 April 2018, Mitsui advised the market that its offer for AWE was free of all conditions, as

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.

Funds Management – In addition to the listed fund FPC, Fat Prophets Pty Ltd manages the separately managed accounts, namely Concentrated Australian Shares, Australian Shares Income, Small Midcap, Global Opportunities, Mining & Resources, and Asian Shares. These SMAs are managed under their own mandates by the fund managers, and this is independent to the research reports.

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.

For positions that directors and/or associates of the Fat Prophets group of companies currently hold in, please click here.

About these archived stock reports

Trusted Equity Research and Wealth Management since 2000

Provenance

The Float

The Roof Comes Later