Market Moving Stocks

/Market Moving Stocks
Mining 1

Profit upgrade likely to drive GR Engineering higher

It was only a month ago (July 8) that Market Wire suggested there was scope for GR Engineering’s share price to move even higher despite a recent strong run that had resulted in an ASX query.

At that point its shares had increased from 94.5 cents to hit a high of $1.15 in just over a week, representing a gain of circa 20%.

Management responded to the ASX query, saying it was unaware of any information that could be responsible for driving the share price rerating.

Free 2

OTOC snaps up another complementary business

Construction, maintenance and planning group, OTOC, announced on Monday that it had acquired the business and assets of WKC Spatial, a provider of surveying and geospatial services for pipeline infrastructure, construction and engineering, land and cadastral projects.

Based in Perth, WKC is a national leader in pipeline infrastructure, having completed over 15,000 kilometres of pipeline construction projects in Australia.

OTOC noted that in recent years WKC had diversified its services to include a range of specialist geospatial services for  infrastructure projects such as laser scanning,

IT 1

BPS continues expansion in North America

Shares in BPS Technology responded positively to management’s announcement on Tuesday that it had continued its Bartercard growth strategy in North America by opening up new franchises in New Hampshire, Alabama and Georgia.

The share price increase was only moderate which would be expected given that there will be limited material near-term impact from these developments.

However, continued expansion of the company’s franchises is an important step in the development of a scalable business in the US.

better-trades

Credit Corp surges on the back of better than expected fiscal 2016 result

It is difficult to believe that a company whose shares plummeted from more than $12.00 to an all-time low of 39 cents in the wake of the global financial crisis is today a 40 bagger.

After delivering a fiscal 2016 result that was slightly ahead of management’s guidance and consensus forecasts shares in Credit Corp were up more than 20% in the first 15 minutes of trading, hitting an all-time high of $16.14.

The provider of debt management and consumer lending services delivered a net profit of $45.9 million,

IT 1

Seven West Media exceeds FY16 expectations but confirms earnings weakness in FY17

Seven West Media announced on Tuesday morning that the company had generated an underlying net profit after tax of $207.3 million from revenues of $1.7 billion in fiscal 2016. Management declared a final dividend of 4 cents, bringing the full year dividend to 8 cents.

The underlying profit was slightly ahead of Macquarie’s estimate of $203.3 million, while the dividend was in line with the broker’s expectations.

Management noted that the group had delivered strong operating cash flows before interest and tax of $274 million.

TrainingRoom9

Navitas delivers FY16 result in line with expectations

Provider of university, professional and English programs, Navitas, has recorded a net profit of $90.1 million from revenues of just over $1 billion for the 12 months to June 30, 2016. Management declared a final dividend of 9.9 cents, bringing the full-year dividend to 19.5 cents.

Analysts at Macquarie were expecting a net profit of $89.5 million and a full-year dividend of 18.6 cents. While the result represents a slight outperformance at both the profit and dividend levels it is difficult to see any substantial share price impact emerging.

Telco 1

An arguably oversold SpeedCast awarded contract as profit result looms

SpeedCast International announced on Tuesday morning that it had been awarded a multi-year service agreement to provide high throughput connectivity across MMA Offshore’s (ASX: MMA) global offshore vessel fleet.

MMA is one of the largest marine service providers in the Asia Pacific region, indicating this is an important development for the company. The energy services group has previously used a range of technologies and providers, but moving to SpeedCast has provided an end to end solution.

SpeedCast has gone from market darling in 2015 when its shares increased from circa $1.70 to a high of $5.20 to ugly duckling in 2016,

Mining 2

Renascor surges under big volumes

Less than two weeks ago Market Wire was looking to identify prospective head turners at the upcoming Noosa Mining Conference. One of the company’s featured was Renascor (July 20), but as I highlighted its share price had already surged on the back of high-grade drilling results, more than doubling from 1.6 cents to a high of 3.3 cents in a matter of weeks.

This was mainly driven by impressive drilling results from the company’s Siviour graphite deposit (part of the company’s Arno graphite project located on the Eyre Peninsula of South Australia) which included one notable hit of 27 metres grading 13.3% total graphitic carbon (TGC).

Head of Jersey Cow

Beston looks to Asia as potential growth driver

Shares in Beston Global Food Company (ASX: BFC) have traded erratically since the company listed on the ASX in 2015 with an IPO price of 35 cents. The group’s shares struggled to make par for the first three months before surging to an all-time high of 63 cents in January.

However, between January and March there was extreme volatility as its shares collapsed to 35 cents, and up until recently have been range bound between 40 cents and 45 cents.

Gold 1

Some good pickings in Canaccord’s watchlist

Analysts at Canaccord have put together an ‘Exploration Watchlist’ focusing mainly on West African gold explorers. The rationale behind producing a list of stocks that are worth monitoring, while not at this stage covering, is that there has been substantial share price movement following on from high-quality exploration results in that region.

The broker highlighted the potential to identify companies that offer above average share price appreciation based on discovery, successful project advancement and development. Merger and acquisition activity has also been more prevalent in this region in 2016 with the main focus being producers acquiring highly prospective development projects.