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Jonathon Feil, Morgans
BUY RECOMMENDATIONS
Sundance Energy (SEA)
Chart: Share price over the year

Recently completed an $89 million raising to accelerate development, provide working capital and to target acquisition opportunities. What I like is it positions the company well to exploit the existing weakness in the oil and gas space. It enables SEA to scale up to optimise operations. The company is targeting an annual rate of 10,000 barrels. If achieved, it will put SEA in the top five Australian listed producers. 
Ashley Services Group (ASH)
Chart: Share price over the year

Provides training, recruitment and labour hire. With a strategic review completed, the company’s five businesses are staring at second half profitability, and there’s potential for further contract wins as the number of players in the space diminishes. The share price has suffered due to earnings downgrades and negative sentiment in the vocation space. Stewart Cummins, who took on the chief executive’s role earlier this year, is regarded as a turnaround specialist. 

HOLD RECOMMENDATIONS

Wellard (WLD)
Chart: Share price over the year

Wellard has disappointed shareholders since listing last year. It revised guidance downwards after finding it difficult to pass on higher cattle prices to traditional customers in Vietnam and Indonesia. It also had to repair two of its vessels. However, the stock was recently trading about 40 per cent below net asset value, and we are seeing interest creeping in from the Chinese and from industry players, such as abattoir operators. 
Megaport (MP1)
Chart: Share price over the year

Provides elasticity connectivity and network services. It’s part of highly successful Bevan Slattery-run businesses. It recently completed a capital raising and share purchase plan at $1.70 a share. It will fund two highly significant acquisitions and fast track its European rollout. The funding enables deals with major data centres. A solid run recently, and I’m happy to hold.
SELL RECOMMENDATIONS
Domino’s Pizza Enterprises (DMP)

Chart: Share price over the year

Has enjoyed nothing short of a stellar run, catapulting price/earnings ratios into the 60s and 70s. A contrarian call, but I believe upside is now limited, as the technology aspect of the business has been over hyped and the offshore acquisitions don’t appear to provide the growth upside to justify the price/earnings ratio. Further, competitive pressures from Foodora and Deliveroo may restrict growth.
MotorCycle Holdings (MTO)

Chart: Share price over the year

A $2 IPO by Morgans in April, I’m happy to take a profit and look for value elsewhere. A very strong maiden result, with pro forma revenue growth of 21 per cent to $209.3 million and pro forma net profit after tax growth of 74 per cent to $8 million. This was underpinned by 5.4 per cent organic growth and contributions above expectations from the two Harley Davidson acquisitions. The industry still appears ripe for consolidation, but rather than relying on such acquisitions, I’m happy to bank a profit here. The shares closed at $3.58 on September 22.

Simon Herrmann, wise-owl.com
BUY RECOMMENDATIONS 
Dicker Data (DDR)
Chart: Share price over the year

This IT and hardware distributor services more than 3000 resellers across Australia. It’s doubled revenue over the past three years. Revenue visibility in the medium term is high as the company has established long term relationships with high profile customers. Quarterly fully franked dividends were recently yielding about 7 per cent. 
Gale Pacific (GAP)
Chart: Share price over the year

We believe this building products and home improvements company offers an attractive mix of capital growth and income. Revenue growth is the primary share price driver and management aims to reward shareholders with higher dividends going forward. Our 12 month price target is 70 cents a share. The shares closed at 38 cents on September 21.
HOLD RECOMMENDATIONS

Alice Queen (AQX)

Chart: Share price over the year

An Australian minerals company focusing on gold and base metal exploration in New South Wales and Queensland. The exploration record of its technical team and upcoming activity at the Looking Glass project are attractive qualities, while the Horn Island Gold Project represents a strategic exploration asset in the Torres Strait. Upcoming drilling at Looking Glass is a major near term value driver. 
MACA (MLD)
Chart: Share price over the year

Provides contracting, infrastructure and civil services to the resources industry. Following strong gains earlier this year, MLD is now consolidating near a two year high. While the latest share price surge skews the risk to reward ratio, we believe it still makes sense to have strategic exposure to MACA. 
SELL RECOMMENDATIONS
MGM Wireless (MWR)

Chart: Share price over the year

MGM Wireless is a school communication and management provider. In the past 12 months, MWR’s share price has fallen more than 50 per cent. Fiscal year 2016 sales revenue fell 20 per cent to $2.5 million while net profit after tax slumped 52 per cent to $500,000. While new products have been launched, the process is incremental and takes time. We believe there are better opportunities elsewhere. 
Highfield Resources (HFR) 

Chart: Share price over the year

The share price has fallen 30 per cent since the beginning of the year. We believe investors are concerned about potential production issues at Spain’s Muga potash project, which could delay development works. Technical support was broken and the medium term trend points to the downside. 

Michael Wayne, KOSEC
BUY RECOMMENDATIONS
Amaysim Australia (AYS)
Chart: Share price over the year

An online mobile service provider that resells mobile packages to retail clients. Although AYS is the fourth largest mobile service provider with 966,000 subscribers, its subscriber base still only represents 2.6 per cent of the total market. Full year results beat expectations due to more subscribers and expanding margins. Fixed costs include service, marketing and billing. So as the number of subscribers increase, profit margins also improve.
Altium (ALU)
Chart: Share price over the year

Develops and sells computer software used by the likes of BMW, NASA, Cochlear and Microsoft to design plastic circuit boards. The most recent financial report highlighted ALU continues to deliver across key metrics. Operating revenue grew by 16.7 per cent to a record of $93.5 million, while EBITDA increased by 21 per cent, signalling an expansion in the EBITDA margin from 28.3 per cent to 29.3 per cent. It’s on track to achieve its target of 30 per cent by 2017. We expect the company target of $100 million in revenue by 2017 to be easily achieved. ALU management has now turned its attention towards revenue of $200 million by the year 2020.
HOLD RECOMMENDATIONS
Healthscope (HSO)
Chart: Share price over the year

This private healthcare provider and its competitor Ramsay Health Care enjoy a dominant market share in what is a local monopoly with high barriers to entry. HSO has been successfully closing the gap on RHC by improving operational efficiency and margins. Business operations performed extremely well in the 2016 financial year. Underlying NPAT improved 25.1 per cent and the operating EBITDA margin expanded by 50 basis points. Capital expenditure significantly increased with 17 hospital construction projects in the pipeline, which should deliver an increasing number of beds and operating theatres to drive revenue and earnings growth. 
Fisher & Paykel Healthcare Corporation (FPH)
Chart: Share price over the year

Makes devices for treating respiratory and sleep apnoea disorders and enjoys a dominant share of the respiratory and acute care market. The long term is bright as the total addressable market is an estimated 130 million patients with only about 20 million currently receiving treatment. The company is delivering revenue and profit growth of more than 20 per cent, while its gross margins continue to improve.
SELL RECOMMENDATIONS
ERM Power (EPW)

Chart: Share price over the year

Recorded strong revenue growth of 19 per cent for the 2016 fiscal year. But underlying net profit after tax fell by 41 per after the expiration of the Oakey Power Station offtake contract. In our view, ERM’s core retailing business in Australia has matured. In the past, ERM was able to grow by providing competitive prices and good service to the most disenfranchised former customers of AGL, Origin and others. I now suspect it has exhausted the low hanging fruit. Beware the yield trap.
Myer Holdings (MYR)

Chart: Share price over the year

We remain wary of execution risk. There’s no silver bullet for a sector facing structural change from internet shopping and the emergence of strong international entrants, such as Zara and Topshop. I believe Myer suffers from an identity crisis. Is it luxury or is it cheap? In many ways, it’s caught somewhere in between. The business has undertaken a series of capital raisings and tried several different strategies in recent years. But the future still looks challenging.

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