Summary
- PEB was able to reduce costs in order to offset income reductions and the company has also received financial support. This has been in the form of relief packages from Governments in NZ, Australia and the United States.
- PPH is anticipating further robust growth in revenue, as the company continues to execute on its strategy to gain further market share in the medium-term.
- As with every organisation, PLX has been monitoring the impact of coronavirus on its operations.
After the ease of lockdown restrictions, many companies came up with announcements with respect to their businesses and how the ease can help them to revive.
These announcements have earned the interests of investors and influenced their share price. In this article, we would look at six stocks that Kiwis have punted on in the last 6 months and will look at their latest updates along with the stock performance.
Blackwell Global Holdings Limited (NZX: BGI)
For the 12 months ended 31st March 2020, the company reported total revenue of NZ$0.436 million, down by 47 per cent from the previous year. The company reported a loss from ordinary activities after tax attributable to a security holder of NZ$0.693 million, down by 18.5 per cent. The company’s loan book stood at $1.57 million.
Financial Results (Source: Company Reports)
Stock Performance
The stock of BGI closed the day’s trading at NZ$0.011 per share on 7th August 2020. The company has a market capitalisation of around $5.526 million. The stock has gained ~83.33% in the past six months and, in the time period of 9 months, it has gained ~175.00%.
Pushpay Holdings Limited (NZX: PPH)
Pushpay Holdings Limited has accepted the resignation of Ms Justine Smyth as an Independent Director of the Company, effective 20 July 2020.
The company is looking for a suitable replacement who would further improve the Board’s breadth of talent as well as background.
Strong Growth in Total Revenue
The company reported revenue of US$129.8 million, up by 32 per cent and operating revenue of US$127.5 million, up by 33% for the year ended 31 March 2020. The company’s gross margin witnessed an increase of 5 percentage points, i.e., from 60 per cent to 65 per cent.
The EBITDAF witnessed an extraordinary increase of 1,506% from US$1.6 million to US$25.1 million.
Stock Performance
The stock of PPH closed the day’s trading at NZ$8.000 per share on 7th August 2020, up by 2.56% on an intraday basis. The company has a market capitalisation of around $2.204 billion. The stock has gained ~75.99% in the past six months and, in the time period of 9 months, it has gained ~125.07%.
Fisher & Paykel Healthcare Corporation Limited
For the 12 months ended 31st March 2020, Fisher & Paykel Healthcare Corporation Limited (NZX: FPH) reported operating revenue of $1.26 billion, up 18% over last year, or 14 percent in constant currency. Net profit after tax stood at $287.3 million, up 37% over the previous year, or 30% in constant currency.
The revenue growth was mainly supported by growth in usage of the company’s OptiflowTM nasal high flow therapy, demand for the products to treat patients with coronavirus, as well as strong hospital hardware sales across the year.
Key Data (Source: Company Reports)
Stock Performance
The stock of FPH closed the day’s trading at NZ$35.410 per share on 7th August 2020, down by 2.85% on an intraday basis. The company has a market capitalisation of around $20.357 billion. The stock has gained ~46.58% in the past six months and, in the time period of 9 months, it has gained ~72.62%.
Plexure Group Limited (NZX: PLX)
The company is considering undertaking an initial public offering (IPO) and applying for admission to the Official List of the ASX. This may require the company to move its primary listing from NZX to the ASX and re-classifying its current NZX listing as an NZX Foreign Exempt listing, which would be allowing its shares to continue to be quoted on NZX. The company will remain headquartered in Auckland and domiciled in NZ.
PLX Reported Robust Growth in Net Profit
FY20 has been a successful year for the company. The company stated that robust revenue growth of 50 percent from FY 2019 resulted in a total revenue from customers amounting to $25.3 million as well as a cash position of $14.2 million.
Net profit stood at $1.0 million, a stellar growth of 243% from the FY19 loss of $0.7 million.
Stock Performance
The stock of PLX closed the day’s trading at NZ$1.480 per share on 7th August 2020, down by 1.33% on an intraday basis. The company has a market capitalisation of around $207.760 million. The stock has gained ~87.34% in the past six months and, in the time frame of 9 months, it has gained ~76.19%.
Pacific Edge Limited (NZX: PEB)
The company has accepted an investment offer of $22 million from ANZ New Zealand Investments. The company will issue 33,846,154 shares to ANZ New Zealand Investments at a price of NZ$0.65 per ordinary share.
The investment from ANZ New Zealand Investments clearly shows that the company has been growing investors’ interests after the completion of 2 major commercial milestones in the USA. The additional growth capital would be accelerating the commercial progress as well as allows the company to execute on its future growth opportunities, hence, adding value for all the shareholders.
Stock Performance
The stock of PEB closed the day’s trading at NZ$0.710 per share on 7th August 2020, down by 1.39% on an intraday basis. The company has a market capitalisation of around $514.142 million. The stock has gained ~491.67% in the past six months and, in the time span of 9 months, it has gained ~309.80%.
Disclaimer
The sole motive of an investor is to grow his/her capital over a period to meet financial goals. In pursuit of this, investors are in a constant hunt for stocks that have capital appreciation potential and those that pay dividends, which one can reinvest to further increase the rate of return. Dividends can also be seen as an incentive for an investor to hold the stock for a longer duration of time, especially when the overall market enters a bear phase, or the underlying invested company goes through business troughs and peaks.
Stocks that have high dividend yield are considered to be a safe bet, but to take a blanket call just on dividend yield would be naive, as there is more to be analyzed to make a sound judgment on the ability of the business to keep paying a dividend over long periods.
Companies over time, increase dividend payout, and in the long term, an astute investor can reap high rewards by picking good dividend stocks, across sectors, thus diversifying and reducing the volatility of one’s portfolio. Investors in New Zealand can reap the benefit of dividend imputation credit and further increase their overall return on investment.
So, how should one pick a dividend stock? How to invest in stocks that have the wherewithal to not only pay a dividend but also increase dividend payout over the years?
With Kalkine, you will find answers to these questions, as we conduct a detailed analysis of companies based on quantitative and qualitative parameters.
Sound dividend stocks are investors' delight. They provide the benefits of capital appreciation and the joy of constant income despite the market volatility.
