Australia

• I am not a tax advisor and I do not play one on TV but it is a subject of interest in Australia, as an AFR article from June 2022 shows.
• The general gist: retail investors in Australia will take gains on stocks which run up in price, or get taken over, then look for losses to offset.
• The portfolio worked well in April. Now we let April ride and add the May basket.

• APM Human Services (APM AU) and US PE-outfit Madison Dearborn Partners, holding ~30%, have entered a Scheme at A$1.45/share, in cash.
• That’s a 74.7% premium to undisturbed; and a $0.05/share increase over Madison Dearborn’s April 8th A$1.40/share NBIO, a price the Independent Board Committee (IBC) previously considered disappointing.
• A scrip option is afforded, and Executive Chair, Megan Wynne and CEO, Michael Anghie will take up that option if the Scheme is implemented. The IBC is supportive. 

• I tally 51 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
• One new deal was discussed on Smartkarma this week:Huafa Property Services Group (982 HK)‘s Scheme. Asia Cement China (743 HK) also suspended pursuant to the Takeovers Code. 
• Key updates took place on: QV Equities (QVE AU), Boral (BLD AU), Greatview Aseptic Packaging (468 HK), Sciclone Pharmaceuticals (6600 HK), and Chilled & Frozen Logistics Holdings (9099 JP).

• RaaS Research Group has published an update report on 3D spatial data solutions group Pointerra (ASX:3DP) following its share placement to raise $2.05m before costs at $0.033/share.
• We had previously factored in a $2.5m raise into our forecasts in H1 FY25 and have now adjusted our model to include the recent raise in our forecasts.
• Based on our estimates, we don’t expect Pointerra to return to the market for additional equity before it reaches EBITDA break-even (H1 FY25 in our estimates).

• Boss Energy, an Australian uranium producer, saw a significant drop in stock price following the sale of shares by three directors.
• The directors sold a substantial amount of their stock, representing 83%, 63%, and 63% of their ordinary shareholdings respectively.
• The high volume of trading on the stock on the day of the sale has raised concerns about the timing and implications of the director’s actions during a critical phase of the company’s life cycle.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• RaaS Research Group has published an update report on diversified financials company Bell Financial Group (ASX:BFG) following the company’s presentation at the Bell Potter Emerging Leaders’ Conference yesterday.
• An April YTD trading update provided at the conference points to revenue growth of 23% and Profit After Tax (PAT) growth of 135%, an acceleration on Q1 CY24 Profit Before Tax (PBT) growth rates provided at the AGM, with all divisions profitable.
• This compares to a RaaS H1 CY24 PAT growth estimate of 90%, placing the group on track to achieve our H1 estimates.

Electro Optic Systems (EOS) is a specialist defence company leveraging its optic technology within specific military applications, primarily remote weapons systems and maritime communications. It is benefiting from growth in global defence spend and, with its latest Counter-Uncrewed Aerial Systems (C-UAS) capabilities, an increase in drone warfare. A new management team, an improved commercial focus and a broadening product portfolio should assist in winning a greater share of these markets, driving growth and profitability.

• With the review period complete, we take a look at the potential index changes at the June rebalance as well as potential index inclusions due to M&A.
• Timing is key for the ad hoc inclusions to the S&P/ASX 200 (AS51 INDEX) with an ad hoc inclusion being announced prior to the regular announcement.
• Passive trackers will need to buy 1.3-27x ADV on the expected adds and have 0.8-4.7x ADV to sell on the expected deletes. Shorts have built up on the potential deletes.

• On the 12th March, Aussie-based investment plays QV Equities Ltd (QVE AU) and WAM Leaders Ltd (WLE AU)  entered into a Scheme. 
• The current scrip terms are 0.739 new WAM shares per QVE share; OR A$0.989/share cash. Terms will be adjusted for updated pre-tax NTA/shares of both companies after the Scheme Meeting. 
• The Scheme Booklet is now out, with a Scheme Meeting to be held on the 28th June. Expected implementation on the 15 July. The IE says fair & reasonable.

• Brainfish, an AI-powered self-service customer support platform for businesses, has raised US$2.5 million in seed funding.
• The latest round was led by Peak XV’s Surge, with participation from Macdoch Ventures, Black Sheep Capital, existing angel Justus Hammer (CEO MadPaws), and new angels.
• This brings its total capital to US$3.3 million.

• Telix Pharmaceuticals (TLX AU) aims to raise at least US$100m in its US ADS listing. The bookrunners on the deal are Jefferies, Morgan Stanley, Truist Securities, and William Blair.
• TLX is a commercial-stage biopharmaceutical company focused on the development and commercialization of therapeutic and diagnostic radiopharmaceuticals. 
• In this note, we talk about the deal dynamics and the listing impact.

• Adriatic is raising an additional $50 million in capital through a discounted offering
• Orion is selling down half of their equity position in the raise, with plans to trim further after 90 days
• Queens Road Capital converted their $20 million convertible debt into equity ahead of schedule in March

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• RaaS has published an update report on IP services group QANTM Intellectual Property (ASX:QIP) following its update on earnings guidance, incorporating the impact of transaction costs on reported EPS in FY24.
• QIP said that as a result of transaction costs it expects to incur up to 30 June in relation to the Scheme of Arrangement with Adamantem Capital, FY24 EPS is now expected to be from $0.075 to $0.08/share.
• The company also provided a new underlying EBITDA range of $33.0m to $33.5m, noting there has been no material change to underlying trading conditions.

• I tally 51 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
• One new deal was discussed on Smartkarma this week: Carlyle’s tiult for KFC Holdings Japan (9873 JP). Shanghai Henlius Biotech (2696 HK) suspended pursuant to the Takeovers Code.
• Key updates took place on: Alumina Ltd (AWC AU), L’Occitane (973 HK), BHP Group Ltd (BHP AU)/ Anglo American (AAL LN), and SciClone Pharmaceuticals (6600 HK).

• Racing and Sports provides data, content, and SaaS solutions to global racing and wagering industries
• Despite challenges post-IPO, such as founders selling stakes and market volatility, RAS shows solid execution and progress towards profitability
• Considered undervalued by investors due to strong business model and impressive financial metrics, RAS remains promising in sports wagering industry

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• RaaS has published an update report on advanced materials manufacturing group Amaero International (ASX:3DA) following its announcement that the first atomiser has been installed at its Tennessee facility and is expected to be commissioned by 30 June. Key points from our report: • Installation and cold testing of the atomiser has been completed and hot testing of the atomiser has commenced on schedule. • In conjunction with commissioning, Amaero expects to produce two tonnes of titanium alloy (Ti64) powder. Following commissioning and cleaning of the atomiser, the company says it expects to commence parameter optimisation for production of C103 powder. Amaero says it expects to deliver initial samples of C103 powder to its offtake counterparty by mid-August. • The company’s announcement is in line with our forecasts for production timing and powder type. • We have adjusted our cost estimates, in particular employee costs in the near term and for conservatism have increased our estimates for research and development costs, without incorporating income estimates for government grants. • Our base-case DCF valuation is now $1.25/share fully diluted (previously $1.37/share) while a +15/-15% sensitivity analysis to our base-case valuation provides a valuation range of $0.67 to $1.72/share.

• Ionic Rare Earths Ltd (ASX:IXR) is a rare earths mining explorer (Uganda) and REO magnet recycling company (Belfast, UK).
• We have excluded Belfast recycling from our valuation at this stage.
• IXR is currently ahead of its most recently published schedule.

• Ionic Rare Earths Ltd (ASX:IXR).
• We have raised our valuation range 26%.
• IXR is a rare earths mining explorer (Uganda) and REO magnet recycling company (Belfast, UK).

• Ionic Rare Earths Ltd (ASX:IXR) is a rare earths mining explorer (Uganda) and REO magnet recycling company (Belfast, UK).
• We have excluded Belfast recycling from our valuation at this stage.
• Since ACF’s IXR Initiation note published on 05 Dec 2023 IXR’s ownership in the Makuutu project has increased to 94% up 34pp from 60%.

• Ionic Rare Earths Ltd (ASX:IXR) is a rare earths mining explorer (Uganda) and REO magnet recycling company (Belfast, UK).
• We have excluded Belfast recycling from our valuation at this stage.
• IXR is currently ahead of its most recently published schedule.

• Ionic Rare Earths Ltd (ASX:IXR) is a rare earths mining explorer (Uganda) and REO magnet recycling company (Belfast, UK).
• We have excluded Belfast recycling from our valuation.
• IXR appears significantly undervalued on an intrinsic and EV/M+I basis compared to its peers.

• Three weeks after instantiation of Phase 1, the ASX200 vs LiquidBasket is +1.8% if you traded the basket VWAP the next day. vs LessLiquid it is +8.5%. 
• Equal weight all names in the two is +3.1%. Trade VWAP over two days it is +0.7%, +7.6%, and +2.7%. So far things are OK. 
• Next week one would add another basket, then in the last week of June, one would cover and reverse the trade and hold on for 30-40 trading days or so.