ASX reporting season continues. Today I’ll take a look at AI Media (ASX:AIM), Mayne Pharma (ASX:MYX), Kogan (ASX:KGN), Adore Beauty (ASX:ABY), Adairs (ASX:ADH) and IPD Group (ASX:IPG).
ASX AFTER THE OPEN
Let’s have a look at some of the reporting winners today.
AI Media (ASX:AIM)
https://www.ai-media.tv/
Let’s look at AI Media (ASX:AIM). This stock has looked to me for a while like it’s been flying under the radar.
Positive outlook but with no numbers. Worth a closer look.
Mayne Pharma (ASX:MYX)
https://www.maynepharma.com/
Ok, the next stock I’m interested in is Mayne Pharma (ASX:MYX). Another stock where the share price had a great year last-year.
I would summarise that as “still nowhere near profitable but rapidly improving”. I’m not sure why this company finds it so hard to make money. It’s numbers always look quite messy with lot’s of adjustments and variance between reported and underlying numbers. Nevertheless the market likes it and I suggest that is attributed mainly to the rate at which it is growing revenues rather than the rate at which it is losing money.
Kogan (ASX:KGN)
https://www.kogan.com/au/
Let’s see what all the fuss is about with Kogan (ASX:KGN).
Huge numbers as this company turns things around. The most eye-catching number for me is the Gross Margin improvement. I think this company has realised post-Covid that the easier and more profitable money lies in providing a platform for others to sell their goods rather than having to hold stock and sell your own goods.
No numbers provided in outlook however January looks to have been another strong month for them.
Adore Beauty (ASX:ABY)
https://www.adorebeauty.com.au/
Next stock of interest is Adore Beauty (ASX:ABY).
Operating cash flow positive and cash on hand increasing is always attractive.
Adairs (ASX:ADH)
https://www.adairs.com.au/
Surprised to see Adairs (ASX:ADH) doing well today, let’s see why.
First thing I’ll check (bit cheeky) is the short positions.
Nothing substantial there so probably safe to say a short-squeeze isn’t contributing much to the today’s performance.
Let’s look at the result summary.
A mixed bag as you would expect as they continue to try and dig themselves out of a hole. The resumption of dividends I suspect is a positive surprise to the market. Fixing Mocka would also be seen favourably. Overall it reads ok as a recovery story.
While PBT is down on the corresponding period, it’s actually up compared to the previous half. A small victory but an important one since it’s been a while since they’ve see an uptick.
Cash flows from operating were strong this half. Never a bad thing!
This stock requires a different lens through which to view its results. I’m always hunting for growth. There’s none of that here. The question is though, if it can continue to turn itself around, is there any value here?
Falling revenues and falling earnings. However, it was once a pretty good performer. I suspect there will be some slight earnings estimate upgrades after this result as the market was pretty negative on them. As for value. that’s a very subjective matter. This is how it sits according to my model.
Probably doesn’t look as cheap as I thought it would.
It must be noted that ASX:ADH has been on the move for a while now. The smart money saw the value back in November.
Buy, Hold, Sell? I’m not allowed to say but for me it’s none of those or is that not possible?
ASX PRE-MARKET
US leads suggest our market will rise 4 points at the open.
Lot’s of company reports continue to be released today. Let’s have a look at a few.
IPD Group (ASX:IPG)
https://ipdgroup.com.au/
First up, IPD Group (ASX:IPG). The stock price has been flying, let’s see if it’s justified.
No numbers in the outlook is always disappointing.
Disclaimer: This information is provided purely for educational purposes. It takes no account of an individual’s personal financial circumstances and hence can in no way constitute financial advice. The above data may be subject to errors or inconsistencies for which the author takes no liability. It is imperative that all investors do their own research or if they need advice, seek it from a qualified financial adviser.
Monday 26/2/24