Stock Tips of the Week — ECX and KIL

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.

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.