5 stocks with bright prospects By Anthony Black | 14.10.2013
Any reporting season usually reveals pleasant surprises or disappointing performances from listed companies. According to market analyst James Samson, 1677 companies, or about 90 percent of the ASX, reported either an interim or full year result to June 30, 2013.
We asked five leading market analysts to choose one stock that surprised on the upside and to analyse the company’s prospects for the next 12 months.
BC Iron (BCI) Money3 Corporation (MNY) Envestra (ENV) Magellan Financial Group (MFG) nearmap Limited (NEA)
Peter Russell, Russell Research nearmap Limited (NEA)
Chart: Share price over the year to versus ASX200 (XJO)
Russell says nearmap has developed a top quality aerial photo mapping system. Its internationally patented technology can provide frequent, customised and detailed pictures quickly and economically. A myriad of applications enable monitoring of infrastructure and mining projects, flood damage and land use changes. Most of Australia's populated areas are now regularly covered. Russell says that in the past year, the company has been rapidly building revenues via subscriptions from corporate and public bodies.
“Last financial year’s $10 million in revenue left a transformed company with $13 million in cash and a $10 million prepaid order book,” Russell says. “We expect it to generate a solid profit in 2014 and beyond as the company expands its market. A good buying opportunity exists at current price levels.”
The shares were trading at 41 cents on October 10.
Cheers SynQuasi
NEA Price at posting:
46.5¢ Sentiment: Buy Disclosure: Held
