From Bell Potter: Donaco{$0.44; 1.5; 3.41%} Sign of strength in...

From Bell Potter:

1. Donaco{$0.44; 1.5; 3.41%}  Sign of strength in cashflow, Buy ahead of result. DNA has announced the refinancing of its USD debt facility which will result in approximately USD3.8m in savings over the next two years.  DNA originally had USD100m and has reduced the debt to USD75m as of today. The facility has been refinanced through the existing Mega Bank relationship.   This is a positive update, consistent with our view that DNA is producing very strong cash flow, and has been reducing its net-debt and is in a position to commence some capital management initiatives. We anticipate the first dividend being paid at the upcoming FY16 result.  DNA is currently trading on ~7x FY16 PE, and a ~5x FY17 PE, highlighting the strong value in the stock.