After the rally into the last weekend in New York, ASX futures were also seen pointing to a higher open, with wall street ending on a positive note, Australian share market ended at a 10 and a half years’ high as at July 6, 2018. The very next day of trading, that is July 09, 2018, many stocks that were otherwise the laggards showed some upside potential. Below are 3 such Asx Listed Stocks trying to find opportunities for a gain after a phase of volatility.
Australian Pharmaceutical Industries Limited (ASX: API) under the healthcare sector was trading at a market price of $1.535 as at July 10, 2018, market open; and it saw a daily price rise of $0.050 or 3.39% on July 09, 2018. The Annual Dividend Yield for the stock is 4.56% which is fully franked. The Stock has seen a performance change or decline of over 16% over the past 12 months. To acquire the assets of Clear skincare Clinics for $127.4 million, Australian Pharmaceutical Industries Limited (API) has entered into binding agreements, and the amount is to be paid in installments over three years.
API will take 100% ownership of the skincare products business and will initially acquire a 50.1% controlling interest in the clinic business. According to the Managing director and Chief executive Richard Vincent, with opportunities to cross-sell the core female customer base it shared with Priceline, API expected double digit earnings growth from Clear Skincare. Meanwhile, the group might face headwinds from Amazon’s latest move to get into pharma retail.
MYOB Group Limited (ASX: MYO) under the information technology sector was trading at a market price of $3.095 as at July 10, 2018, market open, but the stock moved up to $3.115 and saw a daily price change of $0.095 or 3.146% on July 09, 2018. The annual dividend yield for the stock is 3.81%. The stock has seen a decline of 7% over the past 12 months.
By 2022, at the end of the investment period, the group is committing to coming back to 45% EBITDA margins. Part of doing that is, as Mr. Tim, CEO of MYOB said earlier – with growth in revenue, the percentage of revenue comes back to under 16% by 2022 and they maintain a stable level of R&D investment. Based on the increased investment, they are also updating their underlying 2018 EBITDA margin to 42% - 44% and the company does expect free cash flow to stay above $100 million.
Aveo Group (ASX: AOG) under the real estate sector was trading at a market price of $2.415 as at market open on July 10, 2018 and it saw a price change of $0.080 or 3.404% on July 09, 2018. The annual dividend yield for the stock is 3.72%, the total dividend distribution payment amount for all dividend/distributions notified is AUD 0.090. The stock has seen a performance change or decline of 9% over the past 12 months.
From the Group’s flagship retirement community development at Newstead, Brisbane due to higher than expected development profits arising, the underlying earnings per share (EPS) are expected to increase from previous guidance of 20.4 cents per security (cps) to 21.6 cps. Aveo’s Non-Retirement business continues to be sold down and contributes a lower proportion of Aveo’s overall earnings, and the uptrend to Aveo’s retirement earnings is expected to be sustained with FY19 Retirement EBITDA forecast to be higher than FY18 Retirement EBITDA.
While these stocks do see some light of the day intermittently, the trading still remains a bit volatile and watchful.
