Gold: 1,591.90 +1.08%
,
EUR-USD: 1.2780 0.6458%
,
Nasdaq: 2,778.79 -1.24%
,
DJIA: 12,369.40 -0.59%
,
S&P 500: 1,295.22 -0.74%
,
FTSE 100: 5,267.62 -1.33%
,
STOXX 50: 2,144.69 -0.10%
,
DAX: 6,271.22 -0.60%
,
Oil (WTI): 91.48 -1.17%
,
8411:JP: 115.00 -3.36%
,
BAC:US: 7.02 +0.57%
,

These are recommendation prepared by our colleagues at Investment Research Group in Auckland.

Always remember the information is general in nature and not personalised. Your goals, risk preferences and personal situation have not been taken into account so the recommendation may not be appropriate for you.

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Speculative Recommendation: A2 Corporation Ltd

The following information is general in nature and not personalized. We have not taken into account your goals, risk preferences or personal situation.

A2 Corporate Ltd (NZX: ATM)
A2 Corporation owns and commercializes intellectual property that enables the identification of cattle for the production and subsequent marketing of their products. The company has entered into business and licensing partnerships to bring their products to the market in New Zealand, Australian, Korea and the United States, and is negotiating arrangements in other markets. A2 Corporation licenses techniques to identify milk with a protein variant claimed to have health benefits.

What we like about this company?

  • For the six months ended 31 December 2011, A2 Corporation Limited’s total revenue increased 56% to NZ$30 million. The dramatic increase in total revenue reflects the higher demand for A2 products and services.
  • A2 Corporate is in the process of raising $5.18 million in a share placement to fund a joint venture targeting growth in the UK and Ireland.
  • The earnings momentum has given its expansion into the UK a boost of confidence, having entered the UK market in November last year through a joint venture with Robert Wiseman Dairies PLC.

A2 Corp share price over the last twelve months shown below.
A2
Latest traded price: $0.39
Recommendation: Speculative BUY

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AGL Energy (ASX: AGK)

AGL Energy is Australia's second largest retailer of electricity and gas.

It services over 3.3m retail electricity and gas customers in the eastern and southern Australian states representing a 27% share.

What we like about an investment in this company.

  • AGL has stable profits, regular dividends, and low gearing- its products are considered necessities.
  • Potentially dramatic increase of capacity- current total capacity is 3,614 mw, AGL intends to increase its stake in the Loy Yang power station from 33% to 100% raising generation capacity to 6,000 mw.
  • The Loy Yang acqusition should boost earnings for 2013. The current P/E of 13x is at the lower end of the historic trading range (12x-18x).

Growing sales.

Current customer win rates are 50% above that required to meet AGL's target of 800,000 - 900,000 new cutomers by June 2014.

Good entry price?

12 month range $12.50 - $15.79

Last traded $13.69 ( low end of its 52 week range).

Price target $18.00

Recommendation: BUY

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The following information is general in nature and not personalised. We have not taken into account your goals, risk preferences or personal situation.

Troy Resources (TRY : ASX)

Low cost gold and silver producer with operations in South America.

What we like about an investment in this company.

The company's main mine, Casposo, produced record gold and silver during the December quater.

Updated mining plan is expected to deliver significantly increased production through to 2016.

Gold and silver prices expected to continue to be supportive.

Good Entry Price?

Prices look set to break above last week's high of $5.02 in the near future probably taking it into a higher pricing range.

Target Price $8.00.

Current price: $4.94.

Recommendation: BUY

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The following information is general in nature and not personalised. We have not taken into account your goals, risk preferences or personal situation.

Rare Earths are one of the most sought after metals in the world, the world economy cannot develop and grow without them.

Rare Earth is indispensable for so much of what we use today to move the planet forward- examples are: electric motors, solar cells, navigation and guidance systems, lasers, satellites, rechargeable batteries, photo optics.

They have become so important that in 2010 the US Congress passed the "Rare Earths and Critical Materials Revitalization Act " which instructed the Department of Energy to assure the long term supply of rare earth materials sufficient to satisfy national security.

Recommendation Update: Lynas Corporation Ltd (ASX:LYC)

Lynas Corp is an ASX 100 listed company, with the strategy to create a reliable, fully integrated source of Rare Earths from mine through to market.

On 24th November 2011 IRG recommended Lynas Corp as a BUY.

Price at the time was AUD$1.05, current price is $AUD$1.27

Thus we still see this as a good entry price, especially considering our initial price target of $3.00

Recommendation: BUY

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The information below is general in nature and not personalised. Your goals, risk preferences and personal situation have not been taken into account so the recommendation may not be appropriate for you.

Newmont Mining Corp (NEM:NYSE)

One of the world's largest gold producers with operations in Australia, Canada , Indonesia, Mexico, Peru and the United States.

What we like about an investment in this company.

  •  Newmont is a strong company with low costs and good growth. 
  • Current strength of NZ dollar versus US dollar equates to a good opportunity to buy US dollar denominated stocks.
  • Gold prices, which are the largest factor in this company's profitability, are expected to continue to be supportive during 2012.

Growing sales.

  • 5 years 17.47%
  • 3 years 20.41%
  • 1 year   23.82%

Good entry price?

52 week range $50.05 - $72.42

Last traded $61.54 (mid point of its 52 week range).

Recommendation: BUY

 

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The information below is general in nature and not personalised. Your goals, risk preferences and personal situation have not been taken into account so the recommendation may not be appropriate for you.

Linc Energy Ltd (ASX:LNC)

Linc Energy is a globally focused, diversified energy company with a strong portfolio of coal, oil and gas deposits. 

What we like about this company?

  • Company's business model has been streamlined to ensure that management within its three divisions, namely Clean Energy, Oil and Gas, and Coal remain focused on their key objectives.
  • Acquisition of an exploration concession in Poland which covers approx.1.2 billion tonne coal deposit.
  • Three new Oil wells completed and an additional two wells re-completed means that Oil production capacity in the USA anticipated to increase from 3,200 barrels per day to at least 5,900 barrels per day.
  • Company is engaged with a potential cornerstone investor with which it is looking to pursue opportunities in Mainland China.

Good entry price?

The 12 month price range has been $1.02 - $3.29
Last traded $1.33 (at time of writing), close to the lower end of its 52 week range.

Recommendation: BUY

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