Nick Scali (ASX:NCK) shares have materially re-rated since our POSITIVE recommendation in October last year in our weekly research report The Dynamic Investor. After the Company reported its interim results (1H21), we revisited the fundamentals in order to assess the prospect for a further re-rating. About Nick Scali Nick Scali is a furniture retailer operating in Australia and New Zealand (NZ). The business operates under a single brand, Nick Scali Furniture. The Company now has a total store network of …

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We recently revisited the fundamentals for Aristocrat Leisure (ASX:ALL) to assess the outlook for each of the key operating divisions. This was taking into account recent performance in FY20 (ALL has a 30 September balance date), as well as the current trends in the Digital and ‘Gaming Operations’ businesses. Based on this, is ALL still a buy at current levels? Key Fundamental Drivers 1. Strong Outlook for Gaming Operations to Offset Recovery in Outright Sales Land-based revenue primarily comprises a …

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Goodman Group (ASX:GMG) shares have failed to gain significant ground since the start of the year, mainly due to investor rotation into cyclicals. After the Company recently reported its results for the first quarter of Financial Year 2021 (1Q21), we reviewed to see whether the weakness in the share price from recent highs presents an opportunity. About Goodman Group Goodman Group is an integrated property group. They have operations throughout Australia, NZ, Asia, Europe, UK, US and Brazil. The Company …

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After reviewing Incitec Pivot (ASX:IPL) last month, we moved to a Buy recommendation on account of an improving outlook for DAP and ammonia prices, to which the share price is highly correlated to. Aside from more tangible evidence of an improvement in fertiliser prices, what are the are other factors supporting a more positive view on IPL? More importantly, can these support a further re-rating in the shares? About Incitec Pivot Incitec Pivot (IPL) is a globally-diversified industrial chemicals Company …

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Metcash (ASX:MTS) has benefited from COVID-19-driven changes to consumer behaviour. Here we assess the extent to which these benefits, coupled, with other internal measures, support a further re-rating in the shares. Key Fundamental Considerations Can Strong Supermarkets Sales be Maintained? Metcash has three operating divisions: Food (which comprises 50% of group earnings), Hardware (~30% of group earnings) and Liquor (~20% of group earnings). MTS’ Supermarkets business is the main driver of financial performance for the division Food division. The Company …

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