18 Sharing Tips – August 23, 2021
Tom Bleakley, BW Actions
Cybersecurity of the family zone (FZO)
This cybersecurity software developer recently acquired British competitor Smoothwall. The acquisition provides complementary products to Family Zone, including a market-leading offering in school supervision. There is a good opportunity for product cross-selling, which would allow the combined business to increase gross profit per student over the next four years.
PPS provides an investment platform for financial advisors to manage accounts receivable. Over the past year, the company has generated significant platform inflows of $ 3.8 billion. The platform’s funds under administration increased 163% to $ 23.4 billion. PPS has cutting edge technology that is used by the best advisors in the industry. The share price had a strong 12 month year. In our opinion, the company is attractive to potential suitors.
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Macquarie Group (MQG)
The shares of this diversified financial services company went from $ 140 on January 4 to $ 164.98 on August 19. The company has established a long track record of performance. The company remains strong and attractive to investors. But, in our view, short-term growth is already built into the stock price.
Goodman Group (GMG)
GMG develops and manages a global portfolio of industrial property assets. Goodman is used by online retailers through industrial warehouses and enjoys high occupancy rates. The shares went from $ 17.26 on March 19 to $ 22.53 on August 19. In our opinion, Goodman is another solid company that trades at high valuations.
Breville Group (BRG)
BRG recently reported strong results for fiscal 2021. Revenue of $ 1.187 billion was up 24.7% from the corresponding period last year. The closures have helped people buy more cookware. In our view, it will be difficult to repeat the growth rates of 2021 in fiscal 2022 as economies continue to reopen. In our opinion, the stock appears to be trading expensive on a sliding price / earnings multiple of approximately 45 times.
Orocobre and Galaxy Resources recently merged to create the world’s fifth largest lithium producer. Lithium shares have traded heavily in recent months as investors take into account the growing demand for lithium for its use in rechargeable batteries. However, we believe ERO is trading ahead of fair value at this point.
Elio D’Amato, Spotee.com.au
The company is developing a large, low-cost potassium sulphate (SOP) project in Western Australia. A definitive feasibility study calculates a net present value (NPV) of approximately $ 1 billion. NPV is based on 40-year ore reserves and 20 million tonnes of SOP. Unlike many other SOP producers, AMN’s current ore reserve is based solely on shallow brine resources. AMN has signed a binding offtake agreement of 150,000 tonnes per year and is actively seeking other agreements.
Magnis Energy Technologies (MNS)
The global search for cleaner energy sources has raised demand expectations for lithium-ion batteries. MNS recently announced that it has been awarded another $ 74 million contract from the US government. The company is building a factory in New York that is on time and on budget. MNS receives the appropriate approvals. In addition, the company recently secured $ 20 million in funding from US institutions, which has generated increased interest.
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Pinnacle Investment Management Group (PNI)
PNI achieved a strong result for the whole year, with earnings per share growth of over 100%. The company declared a fully franked final dividend of 17 cents per share. Although the company has not provided any formal guidance on the outlook, it has expressed confidence in the quality of its managers amid the new business potential of its institutional portfolio of clients. Although PNI has seen solid growth, it is still worth holding onto as an emerging story from an Australian investment house.
Life360 Inc. (360)
The share price of this US-based online family platform has risen sharply. The shares went from $ 6.68 on June 30 to $ 8.01 on August 19. The company recently surpassed $ 100 million in recurring revenue. The number of users and the average revenue per user continue to grow. The acquisition of Jiobit, a supplier of portable tracking devices, seems to be a good solution.
Transurban Group (TCL)
The closures have an impact on this toll motorway operator. The company is losing millions of dollars in revenue every week due to the lockdowns in Sydney and Melbourne. The NSW government’s decision to shut down the construction industry in the second half of July resulted in an estimated drop in revenues of between $ 16 million and $ 18 million per week. The exploding cost of Melbourne’s West Gate Tunnel project is estimated at $ 3.3 billion.
WiseTech Global (WTC)
This great Australian achievement develops and delivers software solutions to the global logistics industry. Despite COVID-19, the company has gained ground thanks to a quality operating system and the 40 acquisitions it has made since its listing in 2016. But the stock was recently trading on a forecast price / flow ratio of cash more than 50 times. It may be prudent to consider locking in some gains.
Thomas Wegner, Marcus today
Domain Holdings Australia (DHG)
This digital real estate group’s FY2021 net profit increased 66% from a year ago to $ 37.9 million, as revenue climbed 9.7% to $ 289.6 million. of dollars. We believe that the better-than-expected result, coupled with strong momentum in the real estate market, positions DHG for good medium-term prospects.
BHP Group (BHP)
The global mining giant reported underlying profit of $ 17.1 billion for the year 2021, up 88% from the previous year. He declared a final record dividend of US $ 2 per share. We believe the decision to end its dual listing structure, merge its oil and gas assets with Woodside Petroleum (WPL), and pursue major global trends in decarbonization and food security will add value over the course of the year. the action.
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Breville Group (BRG)
The kitchen utensil company posted after-tax net profit of $ 91 million for the year 2021, up 42.3% from the previous corresponding period and ahead of consensus. Revenue also exceeded market estimates at $ 1.187 billion. This was a response to the increase in the number of people working from home and a successful geographic expansion balancing the impact of supply chain pressures.
QBE Insurance Group (QBE)
The insurance giant posted a statutory after-tax net profit of $ 441 million in the first half, compared to an after-tax net loss of $ 712 million in the prior period. The rebound in earnings reflects a significant turnaround in subscriptions and returns on investment. We believe these favorable winds will continue to benefit during the share price. However, the increase in catastrophic claims remains a concern.
AGL Energy (AGL)
Underlying net income after tax for fiscal 2021 fell 33.5% to $ 537 million. Revenue missed consensus forecast at $ 10.94 billion. We expect lower wholesale electricity prices to weigh on the share price over the medium term.
Revenues from continuing operations in the first half of 2021 fell 5% to $ 1.71 billion. Net profit of $ 146 million fell 28% from the previous corresponding period. No interim dividends have been declared as the board continues to maintain a prudent approach to capital management to support the transformation of the business. Better investment opportunities exist elsewhere, in our opinion.
The above recommendations are general advice and do not take into account an individual’s goals, financial situation or needs. Investors are advised to seek advice from their own professional before investing. Please note that TheBull.com.au simply posts broker recommendations on this page. The posting of these recommendations does not constitute a recommendation on the part of TheBull.com.au. You should seek professional advice before making any investment decision.