ASX Small Caps news and tips.
Weekly Stock Buy: Miclyn Express Offshore (MIO)
[caption id="attachment_21716" align="alignleft" width="77" caption="Weekly Stock Buy: Miclyn Express Offshore (MIO) "][/caption] Miclyn Express Offshore (MIO) is a leading provider of service vessels to the expanding offshore oil and gas industry across South-East Asia, Australia and the Middle East.The company supplies services to energy companies across the development cycle – from budding explorers to existing producers. MIO’s fleet consists of Offshore Supply Vessels, Crew/Utility Vessels, Tugs, Barges and Coastal Survey Vessels. The company has managed a high utlilisation rate of its fleet, many of which are deployed on long-term contracts. MIO has gone from strength to strength since floating in early 2010, capping off its growth with a 26% jump in 1H12 net profit from the prior corresponding period. In the right industry MIO’s indirect exposure to the energy sector gives it some leverage to oil prices. As the price of oil strengthens due to Middle East supply concerns and an improving macroeconomic backdrop, major energy companies have incentive to accelerate production and exploration plans. The increased focus on developing oil fields creates demand for energy infrastructure, and MIO is ideally placed to cater for this demand. Impressive results In February, MIO reported a knockout result in which 1H12 net profit rose 26% on-year to $33.1 million. Revenue surged 74% to $126.2 million, driven mainly by an expansion of its fleet services. Utilisation rates strengthened from 78% in 1H11 to 85% in 1H12, reflecting the high demand for MIO’s services. Among MIO’s key divisions, Offshore Support Vessels saw a 10% rise in gross profit, whilst Crew/Utility Vessels gross profit jumped 22% due to high utilisation rates and contributions from newer vessels. The biggest growth came from MIO’s Third Party Vessels segment. Divisional revenue growth of more than 700% saw this business line become a prominent component of overall revenue. MIO expects Third Party Vessels to continue its growth into FY12 and FY13 due to potential upcoming projects. This is notable considering this division requires no capex and additional overheads (implying revenue growth at little cost). Outlook MIO was upbeat about the outlook for FY12, citing the growth in Australian LNG projects as well as the expanding opportunities in South East Asia. Higher oil prices are driving activity in the energy sector, and MIO can therefore expect increased demand for its services. The company’s healthy balance sheet and high profit margins were also on display in the 1H12 results. We expect these factors will continue to underpin MIO’s shares and will be a stock to watch for a while yet. Click Now for FREE Trading Recommendations
Sigma Pharmaceuticals (SIP) posted a FY12 net profit of $49.2 million
[caption id="attachment_21606" align="alignleft" width="187" caption="Sigma Pharmaceuticals (SIP) posted a FY12 net profit of $49.2 million"][/caption] Sigma Pharmaceuticals Limited manufactures, wholesale and distributes prescription, over-the-counter and generic pharmaceutical products. The Company also owns a number of pharmacy banner brands in Australia. Small Cap Sigma Pharmaceuticals posted a FY12 net profit of $49.2 million, a massive turnaround from the $235.4 million loss in the prior corresponding year The rise in profit came despite revenue falling 2.1% for the year to $2.9 billion. The company said that it will pay a final dividend of 2 cents a share and also a special dividend of 1.5 cents, both fully franked. For FREE Daily Trading Recommendations, Click Now!
Katmandu Holdings Limited (KMD) Kathmandu 1H FY12 net profit of $5.9 million
[caption id="attachment_21576" align="alignleft" width="170" caption="Katmandu Holdings Limited (KMD) Kathmandu 1H FY12 net profit of $5.9 million"][/caption] Kathmandu Holdings Limited (KMD) is a provider of clothing and equipment for the travel and adventure market. Retail locations are spread across Australia and New Zealand offering a range of products with technical specifications for different conditions. The company listed on the Australian Stock Exchange in the latter half of 2010. Kathmandu announced its 1H FY12 earnings, booking a net profit of $5.9 million, a 43.1% fall compared to the same period in FY11. The fall in profit eventuated despite revenue lifting 15.4% to $146.6 million over the period. The company said that the sector was attracting more competition, and it does not expect any change in the weak retail environment in the second half. Receive Daily FREE Trading Recommendations, click now.
Gunns Limited Shares Suspended For Capital Raising
[caption id="attachment_21486" align="alignleft" width="162" caption="Gunns Limited Shares Suspended For Capital Raising"][/caption] Gunns Limited activities include forest management and development, milling, processing, merchandising and the exportation of wood products. The Company also merchandises hardware and building supplies, manages forestry based and vineyard based managed investment schemes, produces wine and construction services. Small cap stock Gunns requested for its shares to be suspended for another four days as it continues to negotiate a capital raising. The negotiations have been with major shareholders, a potential new investor and investment banks. The company is trying to raise fund after Richard Chandler Capital decided not proceed with its proposed $150 million investment in the company. To Access FREE Daily Trading Recommendations, Click Here!
Ivanhoe Australia Limited (IVA): First Copper and Gold From Osborne
[caption id="attachment_21446" align="alignleft" width="240" caption="Ivanhoe Australia Limited (IVA): First Copper and Gold From Osborne"][/caption] Ivanhoe Australia Limited is an exploration and development company. The Company intends to process copper/gold and molybdenum/rhenium ores through its Osborne operating facilities in Queensland, Australia. Small cap stock Ivanhoe Mines announced that it has produced its first copper and gold concentrate from its Osborne processing facilities in northwest QLD. The Osborne plant was commissioned in January and is expected to handle about 700,000 to 900,000 metric tons of ore this year. CEO Peter Reeve said that “The commencement of copper-gold production at the Osborne facilities is an important first step in what we envisage will be the creation of a strong cashflow stream for 15 to 20 years”
Materials News: Gunns 1H FY12 Net Loss Of $173.3 million
[caption id="attachment_21221" align="alignleft" width="80" caption="Materials News: Gunns 1H FY12 Net Loss Of $173.3 million"][/caption] Gunns Limited activities include forest management and development, milling, processing, merchandising and the exportation of wood products. The Company also merchandises hardware and building supplies, manages forestry based and vineyard based managed investment schemes, produces wine and construction services. Gunns revealed a 1H FY12 net loss of $173.3 million, a larger loss than the $4.65 million in the previous corresponding period. The loss included a $39.6 million writedown in forest assets and a $59.4 million provision against managed scheme assets. Managing Director Greg L’Estrane said the high Australian dollar was hurting the competiveness of Gunns’ products in the Asian market. Click to Receive FREE Daily Trading Recommendations!
Shares to Buy: James Hardie Industries (JHX)
James Hardie Industries (ASX:JHX) is a leading international building materials group that produces a wide range of fibre cement building materials used in the exterior and interior of residential and commercial buildings. The company is also the largest seller of home siding (imitation wood) in the US, and produces fibre cement in the US, Australia, New Zealand and the Philippines. Approximately 80% of JHX’s sales come from the housing industry, and the majority of this exposure is via the US housing market. Although the US property crash has been a millstone on JHX, recent evidence suggests the market may have turned the corner. JHX focus on efficiency and market share gains has placed it in an advantageous position to benefit from increased US housing activity. US housing recovery Although the US housing sector has been in a well established decline for much of the past five years, recent evidence is pointing to a long-awaited recovery. Among the relevant housing indicators for James Hardie are housing starts and building permits. Housing starts measure the number of new monthly building constructions, whilst building permits are more of a leading indicator in that they measure the number of new monthly residential building permits. Since May 2011, both these indicators have been steadily rising in a sign Americans are beginning to take advantage of the country’s record low interest rates. Furthermore, we see this momentum continuing due to the slowly strengthening US jobs market and the Federal Reserve’s pledge to maintain low interest rates until the end of 2014. Operating results In late November, JHX reported a 1Q12 net operating profit of US$41.2 million, which was double its result in 1Q11. Despite reporting low demand, James Hardie was able to achieve its profit on the back of operational improvements such as a reduction in fixed costs, as well as an increased share of the fibre cement market. This increased market share, positions JHX well in the event of an acceleration of the US housing recovery. Outlook JHX forecast FY12 net operating profit of US$126 – US$140 million. Although management was cautious about the outlook for US housing, recent data points to a noticeable pickup in this industry. With US employment inching higher, housing affordability high and the Fed committed to a record low interest rate environment, there are enough incentives to drive continued improvement in residential construction activity. We at the Australian Stock Report believe that a focus on cost control and increasing market share has placed JHX in a strong position to leverage off any US housing recovery. Click to Receive FREE Daily Trading Recommendations!
Small Caps Stocks News: CSG Ltd (CSV)
CSG Ltd. (ASX:CSV) offers computer and other technology services. The Company offers information, technology, and communications project management and outsourced infrastructure support; applications development services; and sales of document management solutions and telecommunications services. Small cap stock, CSG today announced that is expects NPAT for the half ending 31 December to be within the range of $9 million - $11 million, down from the $19.2 million in same half in FY11. The company said the NPAT included a one off cost of $2.1 million in the last quarter of CY12. CSG cited challenging trading conditions, but did expect an improved performance in the second half. To receive FREE Trading Recommendations, Click Here!
Small Caps Stocks News: Alesco Corporation (ALS)
Alesco Corporation (ASX:ALS) is small cap stock that is involved in the marketing and distribution of industrial products to the building and renovations, construction and mining, scientific and testing and automotive industries. ALS distributes products such as cabinets and panelling, earthmoving and truck tires, garage door openers and laboratory testing equipment. Alesco Corp today released their 1H FY12 results which showed a first half net profit of $7.2 million, in line with the market guidance provided in August 2011. The company also reported an EBIT down 40% to $15.3 million, which included a trading loss on Parbury of $4.7 million CEO Mr Peter Boyd said that given the market condition and earnings levels, each business generated solid cash flows and has solid growth opportunities for the future. Alesco also announced a fully franked dividend of $0.03 per share up from $0.015 in the previous corresponding period. Click to Receive FREE Trading Recommendations!
Gold Stocks News: St. Barbara Ltd (SBM)
St. Barbara Ltd (ASX:SBM) is a gold exploration and production company. The Company's exploration projects include its Southern Cross and Leonora Operations which are located in Western Australia. ASX Small Cap stock, St Barbara today released production figures for the fourth quarter revealing a production increase of 18% compared to the previous quarter. The company said in a statement that the increase was due primarily to stronger milled volumes and the higher grade of ore mined. SBM said exploration drilling will increase in the second half with the exploration budget set to increase by $6 million for the year to $22 million. Click to Receive FREE Daily Trading Recommendations!
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Nov 2014 - Nov 2016
Our short-term focused Trading Report returned 30.03%, outperforming the ASX/200 Accumulation Index by 23.58%*
DISCLAIMER: *Performance is derived from recommendations provided by Australian Stock Report’s Trading Report, opened on or after date of acquisition in Nov 2014 *Return figures are gross returns and do not take into account fees or brokerage costs. *Returns are calculated based on a $50,000 hypothetical portfolio, risking 2% of the overall portfolio balance ($1,000) as a starting point for each trade. *Due to slippage and gapping, losses can sometimes exceed $1,000 on an individual trade. *Opening and closing prices for trades (and therefore the prices used for determining aggregate profit/loss) will be those published on the Australian Stock Report website and will be determined by the price at which they could realistically be executed in the market at the time the recommendation is published. *ASX 200 Accumulation Index Return is calculated based upon the price of the index at the start of the session on the day the first ASX 200 trade was placed, i.e. 24.11.2015
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