Four Diversified Stocks To Look For On ASX- PLS, PCK, STX, Z1P

  • Sep 06, 2019 AEST
  • Team Kalkine
Four Diversified Stocks To Look For On ASX- PLS, PCK, STX, Z1P
Diversification

Diversification can be done by investing in different types of securities. This strategy of diversification may be helpful for those investors who try to reduce their investment risk. Diversified stocks are the combination of stocks, resulting as fixed income assets, containing different types of commodities. A typical diversified portfolio of investors may help them to yield higher return with the least amount of risk.

Why Diversification?
  • It helps in spreading the risks throughout a range of sectors so that the fluctuation in the economy may have a less impact on an individual investor.
  • There is always uncertainty attached to the single investment, and diversification helps in balancing such surprises.
  • Diversification provides the investor with an advantage of receiving positive returns when another market is giving the negative results.

Let us now discuss a few diversified stocks to invest in:

Pilbara Minerals Limited

Pilbara Minerals Limited (ASX: PLS) is the biggest producer of Australian lithium - tantalum, listed on Australian Stock Exchange. The company is considered in the top 200 companies in Australian ASX200 index. Also, Pilgangoora Lithium – Tantalum project is wholly owned by the PLS, which is located in Western Australia, Pilbara region.

Recent Updates

On 5 September 2019, the company made an announcement that the suspension of trading in the securities of PLS had been be lifted, following the PLS’ release with regards to the capital raising.

Further, the company updated on the conclusion of A$36.5 million Institutional Placement.

A few highlights of the update are as follows:

  • The Institutional Placement was considerably oversubscribed, which was supported by the old shareholders and new institutional investors.
  • The placement under discussion would be followed by A$55.0 million strategic placement of CATL with an 8.5% ownership interest.
  • CATL is the largest Chinese manufacturer for Electrical Vehicles.
  • PLS would provide SPP or Share Purchase Plan to the eligible shareholders to raise ~A$20.0 million.
  • This equity raising would boost the balance sheet of PLS and would be utilised in other undertakings of the company.

On 4 September 2019, PLS released a presentation on equity raising of A$91.5 million. The proceeds would be used to improve financial flexibility since the Pilgangoora Project is at ramp- up stage and provide funding to PLS’ preliminary ~21 percent investment in POSCO lithium chemicals joint venture and so forth.

Also, on 27 August 2019, the company notified that it had implemented binding terms sheet with POSCO to move ahead with the establishment of integrated Joint Venture in South Korea region to progress and manage a 40ktpa Conversion Facility.

Operation & Financial Summary for the FY 2019

The company announced the result for FY 2019 period closed 30 June this year, on 23 August 2019, and below are the few highlights of the results.

  • During the period, PLS’ revenue from contracts with customers increased to $42.7 million compared to pcp’s $10.1 million.
  • The Gross profit increased to $6.2 million from the pcp’s $3.9 million
  • The net loss for the period increased to $28.9 million from $19.4 million in the pcp.
  • The company’s cash and cash equivalents at the end of the period stood at $63.5 million.
  • The company has not declared the dividend for the period.

Stock Performance

At the time of writing the report, on 6 September 2019, PLS’ stock was trading up by 3.077 percent at A$0.335 at 3.12 PM (AEST) with approximately 1.85 billion outstanding shares.

PainChek Limited

PainChek Limited (ASX: PCK) is engaged with providing products assessing pain and services that aids in enhancing the life quality of people who are in pain. The company has developed PainCheck® tool which is used to identify the presence and level of pain. It also helps to oversee the effect of treatment to improve the complete care.

Recent Updates

On 5 September 2019, the company announced the hiring of the Head of UK Business Development, Mr Pete Shergill for PainCheck UK Limited. This would aid the company to build the UK market presence. Mr Shergill has 10 years of experience in health care sector. Mr Pete Shergill would be issued with the incentive which include 3,000,000 options, in line, with the company’s ESOP, which is exercisable at $0.21 and would expire in 4.5 years along with the vesting conditions.

Financial Summary for FY 2019

On 28 August 2019, PCK released full-year results closed 30 June this year, and some of the highlights of the period are as follows:

  • The company’s revenue increased by $215,424 from $50,647 compared to the previous corresponding year
  • Loss before income tax stood at $3.26 million from $4.81 million in the pcp.
  • The company’s cash and cash equivalents at the end of FY 2019 was at $4.56 million
  • Total liabilities of the company increased to $628,439 from $447,894 million.

On 6 August 2019, the company notified the market that it received a Singapore regulatory clearance. Further, it announced that it had inked a deal with Allium Healthcare Holdings Pte Ltd, which develops and operates Allium Care Suites.

Stock Performance:

After the close of business, on 06 September 2019, PCK’s stock was valued at A$0.27, up by 3.846 per cent, with a market cap of A$237.68 million and ~914.16 million outstanding shares. In the last three and six months, it has delivered enormous returns of 67.74 per cent and 504.65 per cent, respectively.

Strike Energy Limited

Strike Energy Limited (ASX: STX) is an Australia based exploration company engaged in oil and gas (independent) exploration work. The company’s mainly concentrate on the commercialisation of the gas resources. STX contains two key onshore assets situated in oil and gas areas, namely - the Perth Basin in West Australia and Copper Basin in Southern Australian region.

Recent Updates

On 5 September 2019, the company had announced on the trading halt on its securities pending a release of an announcement associated with West Erregulla-2 well report.

However, on 6 September 2019, STX notified the market that Strike-Warrego Energy limited (ASX: WGO) Joint Venture had demonstrated major gas discovery in the High Cliff sandstone, as a portion of the West Erregulla-2 drilling work. Further, gas saturated High Cliff with 10 metres of net pay and porosities were up to 16 percent. The gross High Cliff gas column was at least of 22 metres. STX also mentioned that the drilling work in the well has now been concluded at 5,100 metres.

On 2 September 2019, the company announced that WE-2 has now been intercepted and is drilling through High Cliff sandstone. Also, Strike kept on drilling 6-3/4 inches section through Bit Basher Shale and have intercepted the High Cliff sandstones at 4,928 metre.

The company holds 50% stake in the joint Venture in EP469 and the other 50% is held by WGO. STX would continue drilling High cliff formation till they reach the Holmwood Shale.

On 27 August 2019, the company announced that Strike – Warrego JV has made a gas discovery in Kingia sandstone, which is a part of West Erregulla – 2 drilling work.

Stock Performance:

After the close of business, on 06 September 2019, STX stock was at A$0.230, with a market cap of A$420.16 million and ~1.56 billion outstanding shares. In the last three and six months, it has delivered enormous returns of 280.28 per cent and 275.00 per cent, respectively.

Zip Co Limited

Zip Co Limited (ASX: Z1P) is a fintech company that offers a variety of retail finance solutions to small and medium scale firms. Z1P provides a 100 percent cloud-based platform that utilises the company’s technology.

Recent updates

On 6 September 2019, Z1P through S&P Dow Jones Indices announcement, updated that Z1P was included in S&P/ASX 300 index, w.e.f 23 September this year.

The company further updated the market that it had inked a deal to acquire the Australian and New Zealand businesses- Spotcap ANZ of international SME or small and medium-sized enterprise lending provider Spotcap Global, offering substantial capability in the SME area.

On 26 August 2019, Z1P announced that it had priced the first issuance of Zip Master Trust. This was the biggest issuance in the Australian fintech space and a considerable achievement for Z1P.

According to Peter Gray, CCO & Co-founder of the company, the transaction would help to provide strong validation toward its proprietary credit and fraud decision platform. It would act as an important milestone for Zip. The deal settlement was expected to conclude on September 5, 2019.

Financial Summary of FY 2019

On 22 August 2019, Z1P declared annual report closed 30 June 2019. A few highlights of the same are mentioned below:

  • The company’s revenue increased by 108% to $84.2 million compared to last year.
  • The receivables of the company increased by 116% to $682.6 million
  • The customers increased by 80% to 1.3 million.
  • Retail partners increased as well and stood at 16.2k, rising up by 53% last year.

Stock Performance

After the close of business on 06 September 2019, Z1P’s stock last traded flat at A$3.890, with a market cap of A$1.37 billion and ~352.14 million outstanding shares. In the last three and six months, it has delivered enormous returns of 23.10 per cent and 126.16 per cent, respectively.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK