Australasian Equities

Equity Research
Archive
Australasian Equities

Sample Reports | Old Reports | Not Current

Speculative

high

A Hiccup? Shares in Goat Milk Infant Formula player, Bubs Australia (ASX.BUB) has been under pressure since hitting a high point in April. It seems that developments on the ground, especially in China, have been the major influencer to the drop. Today, we take a look at the developments since our last update to see whether BUB is still a worthwhile position in the portfolio. What’s new? Back in early February (FAT-UK-1056), BUB reported its 2Q business update which showed an impressive quarter

Northern Star

Speculative

high

3Q22; steady quarter Northern Star has reported its activities for the March 2022 quarter and in doing so reported a rise in gold product and costs. Operations were in line with expectations and on track to hit 2022 production guidance except for unit costs with a downgrade. Higher realised gold prices surged revenue, while a snapshot of Northern Star’s balance sheet revealed a further step up in its quality. The March 2022 quarter saw Northern Star’s operations deliver a better production number

Mincor Resources

Speculative

high

A step closer to revenue day Mincor Resources and BHP Nickel West have agreed to amend the terms of the Offtake Agreement for nickel production produced out of Kambalda. The agreement change comes on the heels of Mincor delivering the first shipment of nickel ore to BHP Nickel West’s Kambalda concentrator. Cash flow from sales are expected in June 2022. The agreement changed the way the nickel and by-products in concentrate were being assessed to determine the volume content. The following image

Bank of Queensland

Core

medium

The little scrapper Bank of Queensland shares have traded in a wide sideways range year-to-date. The immediate reaction to the interim results was negative and we ourselves were disappointed overall, with the dividend coming in short of expectations. Margin pressure at BOQ was notable, though it isn’t alone in this sense, with margin pressure an industry issue currently. There were enough positives and a relatively low bar to achieve outperformance going forward sufficient for us to maintain a favourable view

Vicinity Centres

Core

high

A Steady Climb Shopping mall operator Vicinity Centres (ASX.VCX) shares continue to track higher following the release of its first half fiscal 2022 results. At a glance, brick-and-mortar stores are said to be on the losing end given the ongoing COVID-19 pandemic and inflationary environment but our review of performance tells a different story. With the REIT issuing its interim report, we briefly review the developments and update our investment view. 1H22 Results Review Despite numerous talks of COVID-19 restrictions winding down, the state

The Reject Shop

Speculative

high

Farewell to the CEO Shares of the Reject Shop (ASX: TRS) have been reacting negatively to the announcement of the surprised departure of CEO Andre Reich. Mr Reich’s unexpected departure left TRS in an uncertain near-term position, but its solid business foundation should support the stock. TRS confirmed it is trading in line with expectations outlined in our last coverage (FAT-AUS-1062). We believe TRS can mitigate the departure of its CEO, COVID disruptions and inflationary headwinds and continue to deliver an

Sandfire Resources

Speculative

high

3Q22; MATSA kicking in Sandfire Resources (Sandfire) has turned into the last quarter in good operational shape, following the release of its third quarter update. Sandfire reported a surge in copper production and the inclusion of new product offerings as MATSA kicks in. Unit cost did however take some shine off the operational performance for the quarter. Production guidance remained unchanged for 2022 but was beefed up to include production from the newly acquired MATSA. Sandfire paid US$1.5 billion for MATSA.

Perenti Global

Speculative

high

Challenges and Opportunities While the whole world is crazy about buying commodities and related miners in the past months, this global diversified mining services company, Perenti Global (Perenti), however, suffering from a lack of market attention, despite better-than-expected half-year results. The result saw growth in revenue, but softer margins due to labour and supply constraints. We view the business as moderately undervalued at current levels. 1H22 Result Review Revenue was up at $1.2 billion, ahead 18% on 1H21, driven by a range of

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.