Home Articles

Articles

AVZ Minerals Shares (ASX AVZ) – A Highly Speculative, China Backed Lithium Stock

by Henry Fung - Partner Managing Director Henry Fung - Partner Managing Director No Comments

AVZ Minerals Limited (ASX AVZ) is a mineral exploration company that acquires, develops, mines and produces lithium, tin, tantalum and other base metals.

AVZ Minerals shares floated at A$0.15 in 2007, fluctuated between A$0.10 and A$0.20 FY07-FY11, before declining sharply to A$0.01 in FY12 and stayed at that level for more than four years.

In FY16, AVZ Minerals completed the acquisition of the Manono Project in Democratic Republic of Congo (DRC), the largest lithium deposit in the world. The acquisition pushed the AVZ Minerals share price up more than 3000% to A$0.34 within two years.

Since then the share price has declined to around A$0.10. At this point, AVZ Minerals is a play on the Manono project, of which only 50% has been explored.

AVZ Minerals shares is a typical high risk and high reward stock. Manono was recently confirmed to be the world No.1 lithium deposit in scale and No. 2 in grade. However, lots of risk and uncertainty exist in the short-to-medium term, as AVZ has not even begun commercial mining.

As illustrated in the table, AVZ is not profitable for five years as its activities were merely an initial investment in exploration. Read more

Are Medibank Shares (ASX MPL) A Good Dividend Stock To Buy?

by Henry Fung - Partner Managing Director Henry Fung - Partner Managing Director No Comments

Medibank Private (ASX MPL) is an Australian-based private health insurance provider. Medibank is in the business of underwriting and distribution of private health insurance policies through Medibank and ahm brands.

The company has two main segments, Health Insurance and Complementary Services. The Health Insurance segment offers private health insurance products, including hospital Cover and Extras Cover for Australia citizens and overseas visitors and students. MPL currently has 3.8 million members and has a 29.1 per cent market share in Australia.

The company is well known for its generous dividend payment. Since April 2018, the company’s share price has been in an uptrend and peaked at $3.3 on 15th August before falling back below $3.00 on soft results. Read more

Are Mirvac Shares (ASX MGR) A Stock To Buy?

by Henry Fung - Partner Managing Director Henry Fung - Partner Managing Director No Comments

Mirvac Property Trust (ASX MGR) is a real estate group focusing on real estate development and investment in Australia. Mirvac shares have seen strong growth this year from is steadily increasing within last month, from 2.1 to 2.43 this year and now has a market cap of 9.03 billion. The company has been named as the world’s most sustainable real estate company by Dow Jones Sustainability Index, differentiating them from other real estate groups. Read more

Why Costa Shares (ASX CGC) Is A Long-Term Stock To Buy

by Henry Fung - Partner Managing Director Henry Fung - Partner Managing Director No Comments

Costa (ASX CGC) is Australia’s leading grower, packer and marketer of premium quality fresh fruit and vegetables. Most of its revenue is generated from five categories: mushrooms, berries, citrus, glasshouse tomatoes and avocados. It’s the number one blueberry grower in Australia, and it is aiming to bolster its avocado sector to be the market leader.

Costa shares listed in 2015 at A$2.25 and had a bumpy start, dipping to as low as A$1.84. However, Costa shares have more than tripled in three years, reaching A$8.5 in Jun 2018, before falling 10% to A$7.5 at the end of August 2018. Such growth over the years owes thanks to the shift in consumer taste to sugar-free superfood that it produces and its changes in technology that allows it to supply its key products all year round and realize extra profits in the shortage season. Read more

Are Ramsay Health Care Shares (ASX RHC) A Stock To Buy?

by Henry Fung - Partner Managing Director Henry Fung - Partner Managing Director No Comments

Ramsay group (ASX RHC) is one of the top 5 private hospital operators in the world. Ramsay Health Care operates 235 hospitals, day surgery centres, treatment facilities, rehabilitation and psychiatric units in Australia, France, UK, Italy, Indonesia and Malaysia.

In addition, Ramsay Health Care is one of the biggest private hospital operators in both France and Australia. In the past ten years, The Ramsay Health Care stock price has seen significant gains. However, Ramsay Healthcare shares have performed poorly recently. Read more

Why Volpara Health Shares (ASX VHT) Is A Stock To Buy

by Henry Fung - Partner Managing Director Henry Fung - Partner Managing Director No Comments

Volpara Health Technologies Ltd (ASX VHT) is a New Zealand-based healthcare research, and development company with global scalability. The company provides medical software, specialising in managing the breast screening detection and the flow of information between doctor clinic taking the screening mammogram x-ray.

Even though the company started life in New Zealand, it operates in all major global markets. Volpara Health Technologies has significant growth potential in the future through expansion into the US market. Read more

Why Bapcor Shares (ASX BAP) Is A Stock To Buy

by Henry Fung - Partner Managing Director Henry Fung - Partner Managing Director No Comments

Bapcor Limited (ASX BAP), previously known as Burson, is the leading provider of automotive aftermarket parts, accessories, automotive equipment and services in Australasia. Floated on ASX in 2014, Bapcor acquired a series of related automotive aftermarket companies from 2016 and it has been growing strongly ever since. The Bapcor share price started at AUD$2 in 2014 and more than tripled in less than three years, reaching AUD$7 per share, with Bapcor shares reaching a market cap of around AUD$2 Billion.

Through a combination of sustained organic growth and strategic acquisitions, it has transformed itself from a business primarily focused on the Trade segment of the automotive aftermarket into a group which now covers the full spectrum of the automotive aftermarket supply chain. It now has businesses in the Trade, Retail, Service and Specialist Wholesale segments, operating across Australia and New Zealand and more recently, South East Asia. Read more

Are Coca-Cola Shares (ASX CCL) A Good Stock To Buy?

by Henry Fung - Partner Managing Director Henry Fung - Partner Managing Director No Comments

Coca-Cola Amatil Limited (ASX CCL) is one of the largest bottlers in the Asia-Pacific region and one of the world’s five major Coca-Cola bottlers that generates its revenue from the manufacturing, marketing and distributing of a range of beverage and food products. With employment of more than 13,000 people, CCL operates in Australia, New Zealand, Fiji, Papua New Guinea and Indonesia, and is administered from its North Sydney’s head office.

Combined with its strong and well-diversified products line and industry-leading distribution channels, Coca-Cola shares is a market leader and the company’s share price has been on a steady uptrend since Sep 2017, surging from $7.744 to $9.220 at the time of writing.

However, increased health consciousness tends to negatively affect demand for soft drinks due to their high sugar content. Awareness of the risks of sugar-laden diets causing diabetes, obesity and cancer is booming. The backlash on sweet and fizzy drinks are expected to continuously weaken the trading in Australian beverages with all channels experiencing volume and price pressure because of competition and category trends. Additionally, the rise of private labelled brands from Wesfarmers (ASX WES) and Woolworths (ASX WOW) is putting pressure on Coca-Cola shares. Read more