What’s Hot, Not & Doing
Brought to you by TSN Contributor & Wealth Advisor Nick Kelso
What’s Hot – MCM, HYT, NXD, EMN & DSK
What’s Not – CTT
What’s Hot
MCM – MC Mining Limited today closed up 238% to finish at 12.5c on $740k stock traded. The reason they were up today was because yesterday after market they announced an agreement was reached with Kinetic Development Group (KDG).
KDG has proposed to acquire a 51% interest in MCM for US$90m by initially subscribing for 13.04% for US$12.9m at an implied price of 30.83c followed by a second tranche of US$77m.
KDG is an integrated coal mining and trading group incorporated in the Cayman Islands with extensive operational experience and expertise.
KDG has a successful history of production from its assets that it operates in the autonomous regions of Inner Mongolia and Ningxia, China for over a decade.
HYT – HyTerra Limited today closed up 68% to finish at 5.2c on $4.6m stock traded. The reason they were up today was because they announced Fortescue Future Industries Technologies (subsidiary of FMG) invested $21.9m @ 3.4c for a 39.8% interest in the company.
The investment represented a 9.6% premium to the last closing price of 3.1c, FMG will also be issued 322m options which are exercisable at 5.1c.
The proceeds will fully fund an expanded initial exploration phase of the Nemaha Project facilitating a significant increase in pre-drill acreage, resulting in increased drilling of prospects in several identified geological play areas.
NXD – NextEd Group Limited today closed up 50% to finish at 18c on $210k stock traded. The reason they were up today was because they released its preliminary final report which highlighted an 8.9% increase in revenue to $111.4m.
Net profit after tax adjusted for impairments fell from $5.8m to $0.2m and EBITDA fell from $16.7m to $15m.
An impairment charge of $28.9m was recognised in FY24 against intangible assets including goodwill, brand names and training materials in the Technology & Design, International Vocational and Go Study segments.
EMN – Euro Manganese Limited today closed up 25% to finish at 5.5c on $220k stock traded. The reason they were up today was because they announced an offtake term sheet was entered with Blue Grass Chemical Specialties for its Chvaletice Manganese Project located in the Czech Republic.
Blue Grass Chemical has over five decades of experience in producing specialty chemicals in numerous industries.
Pricing for its high-purity electrolytic manganese metal (HPEMM) will be on a take or pay basis, based on an index-adjusted western benchmark price.
DSK – Dusk Group Limited today closed up 19% to finish at $1.075 on $1.1m stock traded. The reason they were up today was because they released its full year results and FY25 guidance.
DSK’s sales fell by 7.9% to $126.7m & gross profit fell by 7.8% to $81.5m although the gross profit margin increased from 64.1% to 64.3% despite continued headwinds from currency depreciation and higher freight costs.
This was due to the realisation of supply chain efficiencies and tactical control of their promotional calendar.
What’s Not
CTT – Cettire Limited today closed down 20% to finish at $1.06 on $18m stock traded. The reason they were down today was because they released its preliminary full year results which revealed a 34% decline in net profit after tax (NPAT) to $10.47m.
Notwithstanding the impact of increased growth investment, Cettire achieved full year adjusted EBITDA growth of 11% to $32.5 million and increased its delivered margin by 62% to $155m.
Since the start of FY25, the global luxury sector has continued to experience softer trading conditions.
Rats Rant – IMPORTANT INFORMATION
The idea of this report is to be informative and hopefully point out some stocks that you wouldn’t ordinarily have seen during the day, maybe even have a laugh too.This report IS NOT personal advice. Sanlam Private Wealth Pty Ltd DOES NOT PROVIDE personal advice, Sanlam Private Wealth provides General Financial Product Advice.All advice included in The Rat’s Rant is General Advice. Please refer to the General Advice Warning. The views expressed in this report are my views and may not necessarily reflect the same views as Sanlam Private Wealth.It is very important to refer to the ASX website for information on any companies / stock that are contained in this report and as always please consult your financial adviser before acting.
Important Notice
Rat Consulting Pty Ltd (ABN 81 148 181 588 ) Authorised Representative (No 001281456) of Sanlam Private Wealth Ltd (ABN 18 136 960 775) holder of Australian Financial Services Licence (AFSL 337 927).