2 Stocks On Opposite Sides Of ASX Ledger - EM1, XPD

  • Jun 02, 2019 AEST
  • Team Kalkine
2 Stocks On Opposite Sides Of ASX Ledger - EM1, XPD

EM1:

Emerge Gaming Limited (ASX: EM1) is a market leader in eSports. It is a market player belonging to casual gaming tournament industry. The company has online eSports and gaming platforms along with a lifestyle hub called ‘Arcade X’.

Through this platform, casual, social and committed gamers get the option to play several gaming titles against each other through their mobiles, consoles or PCs. The platform uses a unique IP and is well versed with advanced analytics, which aids in tracking and proprietary algorithms to deliver great tournament gaming experiences for users. It also gives options to advertisers for message delivery to the audience.

As per its earlier announcement, the company is preparing for the launch of its Media Gaming Platform Arcade X in Australia and other Tier 1 countries. As per its announcement on 27th March 2019, the company would finalise the date of the launch and will update the market on the same. Through a JV with iCandy Interactive Limited, the platform would have access to 350 million subscribers. Both parties would receive 50% of the revenue generated.

It had signed an MoU with Cloudzen Pte Ltd to use its intellectual property for GameCloud. EM1 appointed Netsport Media for the distribution of Arcade X.

Key features of GameCloud (Source: Company’s report)

At the end of the March 2019 quarter, EM1’s Cash amounted to $1.95M. It is targeting a cash outflow of approximately $140,000 per month to maintain its operations. The cash outflow was almost $135,000 per month. The company raised $1.8 million with the placement of 60,000,000 shares at 3.0 cents per share.

As on May 31st, 2019 the stock closed at A$0.023 on ASX, down 14.815% from its last close.

Share price Trend (Source: ASX)

XPD:

XPD Soccer Gear Group (ASX: XPD) is the Australian holding company of China Soccer Holdings, which is based in Hong Kong. The company is engaged with the manufacturing of soccer footwear. Its own footwear factory is in Fujian province, precisely in the Huzhong Industrial Park in Jinjiang City. This factory has the potential to produce up to 4 million pairs of shoes per annum. The company has its headquarter in Melbourne and it owns four production lines.

Also, the company would be conducting its Annual General Meeting on 31st May 2019 in Queensland.

The company released its Quarterly Report for the period ended 31st March 2019. The cash flow highlights if the same is provided in the table below:

Cash Flows Amount (A$’000)
Net cash used in operating activities 4,785
Net cash from used in financing activities (100)
Cash and cash equivalents at the end of the quarter 45,518
Estimated cash outflows for next quarter 17,628

The company’s balance sheet was in a strong position as per its annual report for the period ended 31 December 2018. Total assets were recorded at $117,141,340 from $108,355,573 in 2017. The total liabilities reduced to $9,204,269 from $14,880,229 in 2017. Total equity was $107,937,071, an increase from 2017 when it was $93,475,344.

The Profit before income tax was $12,813,840, less than 2017’s figure of $12,959,845. Total revenue decreased in 2018 from 2017 to $89,495,601 from $115,426,565. Sales too witnessed a down movement from $12,310,806 in 2017 to $4,629,606.

As on May 31st, 2019 the stock remained suspended, awaiting an announcement related to the transfer of its funds from China to Australia. It last traded on May 24th 2019 at A$0.013.

Share price Trend (Source: ASX)


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