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Jeremy Hook, TMS Capital
BUY RECOMMENDATIONS
Macquarie Group (MQG) 
Chart: Share price over the year

Produced the best report of the recent bank reporting season. This leading Australian investment bank showed solid growth across most divisions and, unlike other banks, delivered earnings growth at a time when domestic credit growth is hard to come by.
Baby Bunting Group (BBN) 
Chart: Share price over the year

Since listing in October 2015, the retailer has been a good performer. A steady store rollout plan, particularly in New South Wales, should see earnings grow solidly over coming years. It’s the leading player in the baby products segment and has a growing online presence. HOLD RECOMMENDATIONS
Magellan Financial Group (MFG) 
Chart: Share price over the year

This specialist investment management business has been an outstanding performer over many years, and the consequent upward price move into the mid $20 levels leaves it fairly valued. Generating a return on equity of about 60 per cent, it’s the best of a good group of fund management companies. The stock was trading at $23.90 on May 26. Ramsay Health Care (RHC) 
Chart: Share price over the year

This leading private hospital operator was recently priced on 27 times fiscal year 2017 earnings. We believe upward momentum could slow. As a result, we reduce our recommendation from a buy to a hold. SELL RECOMMENDATIONS
South32 (S32) 
Chart: Share price over the year

Investors in BHP Billiton received a one-for-one entitlement to S32 as part of BHP’s 2015 demerger. This metals and mining company has bounced with the recent improvement in materials stocks, but, in our view, it represents less value and growth than BHP and many other stocks. Cardno (CDD)
Chart: Share price over the year

This infrastructure and environmental services company is under pressure on the earnings front. A recent capital raising dilutes the equity without fully liberating the balance sheet. Despite management initiatives, the trajectory of earnings is still down and suggests a lower share price than the 93 cents it was trading on May 26.

Darren Jackson, Sanlam Private Wealth
BUY RECOMMENMDATIONS Tegel Group Holdings (TGH)
Chart: Share price over the year

New Zealand’s leading poultry producer listed on the ASX on May 3. It offers an attractive valuation and growth prospects. There’s strong demand for chicken in China and New Zealand is considered clean and green. The IPO roadshow was well received by institutions.   Adacel Technologies (ADA)
Chart: Share price over the year

Develops and integrates software systems for the aviation industry. Recurring revenue has been steadily increasing in the past year and the company posted a solid net profit after tax of $3.9 million for fiscal year 2105. Further growth potential exists by expanding into new markets and launching new products. A speculative buy.  HOLD RECOMMENDATIONS Vocus Communications (VOC)
Chart: Share price over the year

In February 2016, Vocus completed a merger with M2 Group (MTU). The current valuation of the combined group is reasonable. Expect more upside if the company successfully executes the merger plan of refinancing debt, stripping out costs and expanding current margins, which are significantly lower than competitor TPG Telecom.
buyMyplace.com.au (BMP)
Chart: Share price over the year

A backdoor listing that’s disrupting the traditional real estate market by offering zero commission on property sales.  It generates revenue from fixed costs on sales. The model’s proven to be highly successful in Canada, which has a similar culture, legal structure and property market to Australia. The company has been profitable for the past three years and we expect this to accelerate in response to a new website and putting in place key marketing and executive teams.  SELL RECOMMENDATIONS Wesfarmers (WES)
Chart: Share price over the year

The Coles business is facing the same headwinds as rival Woolworths, notably increasing competition from ALDI, as it rolls out more stores. Retailer Target and the Wesfarmers coal business contributed to the company recently announcing more than $2 billion in impairments.  
Liquefied Natural Gas (LNG)
Chart: Share price over the year

The company recently announced that it received FERC (Federal Energy Regulatory Commission) approval for its Magnolia LNG project, yet there was no subsequent increase in valuation. Listed US rival Cheniere Energy has managed a strong bounce off recent lows, but not LNG.

Gavin Wendt, MineLife
BUY RECOMMENDATIONS
Minotaur Exploration (MEP)

Chart: Share price over the year

One of our favourite exploration plays. MEP maintains a diverse portfolio of exploration projects, a well credentialed team and solid cash reserves that ensure aggressive exploration activity. In the past month, Minotaur has announced three new major exploration initiatives in South Australia and Queensland. It also has the highly regarded investment house, Sprott Group, on its share register, with a 13 per cent stake. 

AusQuest (AQD)

Chart: Share price over the year

AQD has started its much anticipated diamond drilling program on its Puite porphyry copper and gold prospect in southern Peru, under the Puite-Colorada joint venture agreement with Zahena. It’s the first of four porphyry targets to be tested in 2016 and should generate strong market interest. A total of 20,000 metres of diamond drilling (or expenditure of at least $US3 million) needs to be completed before the end of 2016 to fulfill the requirements under the joint venture agreements. 
HOLD RECOMMENDATIONS
Anova Metals (AWV)

Chart: Share price over the year

An Australian based junior gold developer, focusing on its Big Springs project in northern Nevada. Open pit mining is set to start during the 2016 second half. Permit delays have been frustrating, but approvals are expected in the late second quarter of 2016.

Gascoyne Resources (GCY)

Chart: Share price over the year

The board and management team offer a strong blend of exploration, discovery and mining experience. The company has grown its WA gold resource inventory to 2.05 million ounces, comprising three advanced projects located on granted mining leases.
SELL RECOMMENDATIONS
Pilbara Minerals (PLS)

Chart: Share price over the year

Profit taking may be appropriate for some investors. We’re still positive about the stock. The company’s low risk exposure to lithium – a major component in high-tech applications – via its WA Pilgangoora project is a key attraction. On December 31, 2015, the shares were priced at 32 cents. The shares closed at 55 cents on April 13 and 62 cents on May 26.

West African Resources (WAF)

Chart: Share price over the year

The stock finished at 17 cents on May 26. On February 22, it was 5 cents. It remains one of our favourite emerging African gold producers. In our view, the rapid move reflects the market recognising high grade mineralisation at its Tanlouka project, reinforced by recent diamond and reverse circulation drilling, which potentially could boost overall project economics. Our positive view on the stock hasn’t changed, but some investors might look to lock in some profits around current price levels.

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