Equities Commentary

Growth Focus: Pro Medicus Ltd (PME)

by Patrick Taylor



Date of Data Capture: 18/06/2020

Name: PRO MEDICUS LIMITED (PME)

Classification: Medical Software & Technology

Current Price: $26.76

Market Capitalisation: $2.89 B

Forecast EBITDA Growth: 22.81%

Yield Estimate: 0.46%

Consensus Price Target: $28.43

# Covering Analysts: 7

Discount at Current Price: -6.24%

Price Target Trend (3-Month): Up-Flat +1.90%

Signal Timeframe: Monthly-Weekly-Daily

Trend Bias: Up-Down / Long-Short
Indicators:
Short-term: Positive-Neutral
Medium-term: Positive-Neutral
Long-term: Positive

Recommendation: Buy

Focus: Capital Growth

Set up Notes:

·    Health imaging technology specialist PME is currently climbing higher within a sharp recovery growth trend and offers a fresh entry here with good performance and forecasting.

·    Strong sales, margins and earnings growth from 2015 rewarded shareholders well, but recent weakness should be a good buying opportunity with further strong growth expected out to 2022.

·    Pricing shows an exponential rally reaching its blow-off top culmination by late 2019, before entering price consolidation (exacerbated by the Covid19 panic) but is now rallying again off deep support with positive momentum building here.

§ Support ($): 25.00, 22.50, 20.00, & 15.00.

§ Resistance ($): 30.00, 35.00, 37.50 & clear.

Growth Focus: Mount Gibson Iron Limited (MGX)

by Patrick Taylor



Date of Data Capture: 04/06/2020

Name: MOUNT GIBSON IRON LIMITED (MGX)

Classification: Iron Ore Mining

Current Price: $0.71

Market Capitalisation: $822 M

Forecast EBITDA Growth: 94.09%

Yield Estimate: 3.52%

Consensus Price Target: $0.76

# Covering Analysts: 3

Discount at Current Price: -7.04%

Price Target Trend (3-Month): Flat-Down -9.52%

Signal Timeframe: Monthly-Weekly-Daily

Trend Bias: Up-Down / Long-Medium
Indicators:
Short-term: Positive
Medium-term: Positive-Neutral
Long-term: Positive-Neutral

Recommendation: Buy

Focus: (Dividend Income) & Capital Growth

Set up Notes:

·    High-grade iron ore miner MGX tends to move both up and down in long-term trends, and here we find them setting up a new potential uptrend as price firms on support and strong forecasts.

·    Performance has been mostly positive in recent years with strong gains made since 2018 as the refurbished mine ramped up production and sales - and this trend is expected to continue out to 2022 with strong sector outlook for iron ore.

·    Pricing shows a history of strong rallies giving way to profit taking falls - and here we find them seemingly setting up a new uptrend as fresh strength signals through with good momentum.

§ Support ($): 0.70, 0.65, 0.60, 0.55 & 0.50.

§ Resistance ($): 0.75, 0.80, 0.90, 1.00, 1.30 & clear.

Growth Focus: Electro Optic Systems Holdings Ltd (EOS)

by Patrick Taylor



Date of Data Capture: 20/05/2020

Name: ELECTRO OPTIC SYSTEMS LTD (EOS)

Classification: Aerospace & Defence

Current Price: $5.26

Market Capitalisation: $917 M

Forecast EBITDA Growth: 64.52%

Yield Estimate: 0%

Consensus Price Target: $5.78

# Covering Analysts: 1* (*thin coverage warning)  

Discount at Current Price: 9.89%

Price Target Trend (3-Month): Up-Down -7.07%

Signal Timeframe: Monthly-Weekly-Daily

Trend Bias: Up-Down / Long-Short
Indicators:
Short-term: Positive
Medium-term: Positive
Long-term: Positive-Neutral

Recommendation: Buy

Focus: Capital Growth

Set up Notes:

·    This aerospace/defence company manufactures and develops laser-based surveillance and security systems - it was in an aggressive uptrend before the Covid19 scare and now offers a discounted entry with good forecasting.

·    Strong sales growth from 2016 drove pricing higher by 500%+ over 4 years, before falling more than 70% in the last two months - but the company retains its strong growth outlook which is expected to continue out to 2022.

·    Pricing shows an aggressive rally giving way to collapse as panic selling broke it down to major support levels, but with fresh positive signalling this could be a new recovery uptrend here.

§ Support ($): 5.00, 4.50, 4.00, 3.50 & 3.00.

§ Resistance ($): 6.00, 6.50, 7.00, 8.00 & 10.00.

Growth Focus: Credit Corp Group Limited (CCP)

by Patrick Taylor



Date of Data Capture: 07/05/2020

Name: CREDIT CORP GROUP LIMITED (CCP)

Classification: Corporate Financial Services

Current Price: $14.20

Market Capitalisation: $949 M

Forecast EBITDA Growth: 6.9%

Yield Estimate: 3.62%

Consensus Price Target: $21.61

# Covering Analysts: 5

Discount at Current Price: 52.18%

Price Target Trend (3-Month): Up-Down -35.49%

Signal Timeframe: Monthly-Weekly-Daily


Trend Bias: Up-Down / Long-Short
Indicators:
Short-term: Positive-Neutral
Medium-term: Positive
Long-term: Neutral

Recommendation: Buy

Focus: Dividend Income & Capital Growth

Set up Notes:

·    Debt collection specialist CCP has just firmed up its balance sheet via institutional capital raising and looks to be entering a new recovery phase in good condition, with great potential.

·    Performance had been strong for years before the recent crash, with pricing falling more than 60% from all-time highs reached 3 months ago, with positive forecasting, sentiment, and with a big discount to price targets at current levels.

·    Pricing shows the steep crash and recovery over March and April, ultimately pulling back from minor price resistance under $20, but with positive momentum building here we could see the stock reset and aim towards old highs again.

§ Support ($): 14.00, 13.00, 12.00 & 10.00.

§ Resistance ($): 18.00, 20.00, 24.00 & 28.00.

  

Growth Focus: Nickel Mines Ltd (NIC)

by Patrick Taylor



Date of Data Capture: 23/04/2020

Name: NICKEL MINES LIMITED (NIC)

Classification: Nickel Ore Mining

Current Price: $0.49

Market Capitalisation: $509 M

Forecast EBITDA Growth: 576% (cashflow +ve 2019)

Yield Estimate: 0%

Consensus Price Target: $1.08

# Covering Analysts: 3

Discount at Current Price: 120.41%

Price Target Trend (3-Month): Up-Flat -16.28%

Signal Timeframe: Monthly-Weekly-Daily

Trend Bias: Up-Down / Long-Short
Indicators:
Short-term: Positive-Neutral
Medium-term: Positive
Long-term: Neutral-Negative

Recommendation: Buy

Focus: Capital Growth

Set up Notes:

·    This fresh nickel explorer was off to a hot start and had a great 2019, before folding under the selling pressure of the Covid19 panic - and we think it looks like a bargain now with excellent prospects and potential at a big discount here.

·    Listing in 2018 and moving into profits last year, 2020 was expected to be a watershed year of strong earnings and profit growth, supported by aggressive gains across sales and margins, with this trend forecast to build and extend into 2022.

·    Pricing shows a selling cascade in February that cut values in half by March, before rallying off deep support and moving higher to break through linear resistance two weeks ago – now running higher on good momentum.

Support ($): 0.45, 0.40, 0.35 & 0.30.

Resistance ($): 0.50, 0.60, 0.70 & clear.

Disclaimer

This report was produced by Taylor Securities Pty Ltd, which is a Corporate Authorised Representative (Number 414063) of Bespoke Portfolio Pty Ltd (AFSL 341991). Taylor Securities and Patrick Taylor (Representative number 414064) have made every effort to ensure that the information and material contained in this report is accurate and correct and has been obtained from reliable sources. However, no representation is made about the accuracy or completeness of the information and material and it should not be relied upon as a substitute for the exercise of independent judgment. Except to the extent required by law, Taylor Securities and Patrick Taylor does not accept any liability, including negligence, for any loss or damage arising from the use of, or reliance on, the material contained in this report. This report is for information purposes only and is not intended as an offer or solicitation with respect to the sale or purchase of any securities or financial products. The securities or financial products recommended by Taylor Securities and Patrick Taylor carry no guarantee with respect to return of capital or the market value of those securities or financial products. There are general risks associated with any investment in securities or financial products. Investors should be aware that these risks might result in loss of income and capital invested. Neither Taylor Securities and Patrick Taylor nor any of its associates guarantees the repayment of capital. WARNING: This report is intended to provide general financial product advice only. It has been prepared without having regarded to or taking into account any particular investor’s objectives, financial situation and/or needs. Accordingly, no recipients should rely on any recommendation (whether express or implied) contained in this document without obtaining specific advice from their advisers. All investors should therefore consider the appropriateness of the advice, in light of their own objectives, financial situation and/or needs, before acting on the advice. Where applicable, investors should obtain a copy of and consider the product disclosure statement for that product (if any) before making any decision.