Two Stocks Starting With ‘H’ That Have Been On A Sell Radar - HCT and HOR

When there is volatility, the usual trend is that the investors start selling the stocks that are not upbeat. The challenge then comes as the portfolio needs to be re-built at a decent price. Two companies which have been on the sell radar of the investors are discussed today where one is from consumer staples which are impacted by consumer spending lately, and one is from metals and mining sector which is down more on the global outlook and AUD slipping lately. Let’s look at these stocks in detail.

HOLISTA COLLTECH LIMITED (ASX:HCT) – The food ingredient specialist for local and international market has partnered with Bursa Malaysia-listed Kawan Food Berhad to produce healthy Asian flatbreads, including roti, roti canai, and chappati. While sales to U.S. consumers are expected to commence in June 2019, the low-GI roti canai will be sold in Malaysia by April 2019. Malaysia is Asia’s most obese nation with a 13.3% obesity rate, according to the Economic Intelligence Unit. For a clean-label gluten-free formulation developed by Veripan of Switzerland, the company recently announced that it had secured North American distribution rights. Gluten-free food according to Statistics made up almost 3 percent of all U.S. food sales in 2013 and went up to 6.5 percent in 2015. For the year 2019, in a market that is projected to be valued at US$7.6 billion by 2020, the large-scale production of the blend will enable Holista Foods to meet customer volume commitments. Its proprietary mix of ingredients is expected to add up to AU$4 million to Holista’s top line this year, GI Lite added to Kawan Food range of products. The company holds A$ 917,000 cash and cash equivalents at the end of quarter ending September 30, 2018. The earnings per share (EPS) as at January 25, 2018, is of -0.005 AUD which reflects restrained profitability of the firm. The stock of Holista dropped by 20% on January 25, 2019, to close at $0.044 which is at its 52-week low with a market cap of $12.87 million. The stock has been declining over the past year with a negative performance of 45.00% in six months and 48.24% over the past year.

HORSESHOE METALS LIMITED (ASX:HOR) – Effective 16 January 2019, the company announced the resignation of Mr. Brendon Morton as company secretary with the board thanking Mr. Morton for his services to the company. The company declared the appointment of Ms. Carol New as company’s secretary from the same date as Mr. Morton departs. Ms. New is a Chartered Accountant and holds a Bachelor of Business Degree. The company revealed the working capital funding provided to the company via an unsecured loan facility by Mr. Fotios and entities associated with Mr. Fotios who is a director and major shareholder of the company. The company is continuing to assess any potential impact on the loan facility and is not currently aware of any such impact. Murchison Copper Mines Pty Ltd which is the wholly owned subsidiary of the company Horseshoe, holds a 100% interest in the Kumarina and Horseshoe Lights project located in the Peak Hill Mineral Field. The company released during the quarter, results of a 15-hole reverse circulation drilling program completed at its Horseshoe Lights project. The company continued its efforts to identify and review suitable corporate, base metal and copper opportunities within Australia. At the end of September quarter, the company holds A$ 2,000 cash and cash equivalents. The earnings per share (EPS) as at January 25, 2018, is of -0.011 AUD which reflects restricted profitability of the firm. The stock of Horseshoe dropped by 20% on January 25, 2019, to close at $0.008 which is at its 52-week low with a market cap of $1.95 million. The stock has been declining over the past year with a negative performance of 52.94% in six months and 65.22% over one year.

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