We have two stocks to bring to your attention to this week. This recommendation is based on Tony’s analysis using data from Sunday, 24 Oct 2021. 


ECX

Our large cap stock of the week is Eclipx Group. 

Eclipx Group Limited (ECX) is one of Australia’s leading providers of fleet management services and operate in Australia and New Zealand. Their products include a comprehensive range of motor vehicle fleet services from acquisitions, leasing, in-life fleet management and remarketing.

Some of the reasons it is our large cap stock of the week include: 
One of the largest average daily transaction stocks in our buy list with an ADT $1.5m.
Restructured a few years ago under new management. 
Buyback program that has underwritten the share price in the last year. 
QAV score 0.34 
Quality score 64%
Price-to-Operating Cashlow is very low at 1.87
PE of 15.
At a share price 2.36 it is slightly below consensus target. 
Financial health is consistently strong.
Good forecast growth EPS. 
Note that their results will come out Nov 3. 
 

KIL

Our small cap stock of the week is Kiland (KIL), formerly known as Kangaroo Island Plantation Timbers (KPT). 

(Update 2021-10-27 – It seems KPT changed their name, code and business model today. Please take that into consideration if you’re thinking about investing in the stock.)

Kangaroo Island Plantations Timbers (KPT) is a listed timber company. It manages a wholly-owned portfolio of hardwood and softwood forestry plantations, growing on former agricultural land on Kangaroo Island, South Australia.

Some of the reasons it is our small cap stock of the week include: 

  • QAV score of 0.41 
  • Average Daily Transaction of $22,000.
  • Price-to-Operating Cashlow of 2.21.
  • It has only recently gone above its three-point trend buy line.
  • Share price of $1.19 is less than Book + 30%
  • Financial health is stable and strong.
  • Quality score of 90%.
  • Equity per share is $1.70, substantially higher than the share price. 
  • Directors hold 37% of the shares. 
  • Worth noting that we’re using a shorter graph for KPT and that they are pretty close to their sell line. 
  • A fire destroyed 90% of their timber early 2020, resulting in the collapse of their share price. They got a large insurance payout and are re-building. 
  • Since then they have changed strategy, replaced their executive team and board. 
  • Where their business goes from here will depend a lot on the new team and new strategy. 

Please Note: 

Our recommendations are based on the share price as of the date of the download. If the share price changes, this will affect the QAV score and its ranking on our buy list, so please take price changes into account before making any investing decisions.

Please also note that this isn’t personal financial advice and you should consult a financial planner before making any investment decisions.

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