Happy December everyone, and we’re back with not one, but TWO Hot Stocks this week! Money3 Corporation (MNY) and Buddy Platform (BUD) are our picks with strong charts and of course, robust fundamentals to support our decision.
Firstly, Money3 Corporation – valued at only about a 9x FY17 PE and paying a decent dividend, had an unbelievable setup on the charts (below).
Just a quick brief on the story, Money3 Corporation has over 50+ branches throughout Australia with a lending business model allowing cash loans up to $8,000 and car loans up to $35,000 over periods of up to 60 months. They focus on customers that are usually denied by the traditional providers of loans.
It’s been a phenomenal year for MNY in FY17 with full year revenues up 13.4% with all divisions delivering growth! The EPS of 18.81c puts MNY (at $1.70) at a 9.03x FY17 earnings! Bottom line growth has also been steadily chugging along with the revenue numbers and it’s great to see improved margins to complement. Throw in a nice cash balance and a nice reflection of growth in the first quarter from the Company, we think this definitely had the fundamentals behind it to have a great week.
Outlook for FY18’s NPAT is expected to be in the range of $29-30M, would be up 9-12% on proforma.
Secondly, we have Buddy Platform (BUD). The stock that’s been talked about in much more positivity since it’s huge price run a couple weeks ago. The daily chart had a perfect setup that just shouted bullish momentum!
BUD has been kicking goals in terms of their Ohm rollout, signing deals in Australia (Telstra) and in the UK (Rizon). Buddy’s been our Hot Stock before, and I’m sure by now, everyone knows the sentiment behind this story is unmatched in the market – except maybe GSW that’s also been an absolute killer!
Best of luck trading this week!