To The Moon

As of the close on Friday, $S&P/ASX 200(XJO.AU)$ closed at 6,892.50 points, up 1.57% in the past 5 days.

During the last 5 trading days, $Coronado Global(CRN.AU)$ $New Hope(NHC.AU)$ $Nickel Industries Ltd(NIC.AU)$ $Stanmore Coal(SMR.AU)$ $DOWNER EDI LIMITED(DOW.AU)$ are the top 5 Weekly gainers, up 22.04%, 13.16%, 11.43%, 10.71%, and 9.80% respectively.

$Ormat(ORA)$ $Ssr(SSR.AU)$ $Brainchip Holdings(BRN.AU)$ $LENDLEASE GROUP(LLC.AU)$ $Domino's Pizza Enterprises Ltd(DMP.AU)$ are top 5 decliners of ASX stocks which market capital above AU$2 Bln.

Below are YTD performances and key analyses of the TOP 5 gainers:

1. $Coronado Global(CRN.AU)$ -- good earnings and special dividend

Coronado has been on a roll this year, posting yet another strong quarter this week.

Revenue: US$875 million of for the September quarter, a 15.3% fall on that of its record June quarter.

Over the course of 2022 so far, it’s declared US$2.85 billion of revenue–more than double what it had this time last year.

It also announced a US 13.4 cent special dividend.

The coal miner previously declared two special dividend worth a combined US 11.9 cents (16.66 cents) in May and two ordinary dividends in February and August, worth US 9 cents (12.19 cents) and US 7.5 cents (10.86 cents) respectively.

Coal prices are at record levels as coal miner Coronado Global Resources confirms talks on a combined transaction with US-listed Peabody Energy.

Morgans retained its add rating on this coal miner’s shares with an improved price target of $2.40. The broker notes that Coronado Global delivered stronger than expected revenue and earnings during the last quarter. It was also pleased to see a special dividend declared.

Accroding to the data from marketscreener:

Analysts average target price for $Coronado Global(CRN.AU)$ is AUD 1.48.

YTD performance in 2022 is 115.95%.

2. $New Hope(NHC.AU)$ - announced share buyback up to $300 million

Despite rising by almost 170% in 2022, the company’s board and management teams believe the New Hope share price still “does not accurately reflect the underlying value of the Company’s assets.”

In light of this and after taking into account the company’s future expected operating and cash flow requirements, the board has unanimously approved an on-market buyback of ordinary shares for up to $300 million.

This buyback is scheduled to commence on or around 17 November 2022 and be completed within 12 months.

New Hope believes the buyback represents an opportunity to enhance the value of the remaining shares on issue, as well as provide an opportunity to improve the liquidity of the stock.

Accroding to the data from marketscreener:

Analysts average target price for $New Hope(NHC.AU)$ is AUD 7.51.

YTD performance in 2022 is 252.07%.

3. $Nickel Industries Ltd(NIC.AU)$ -- Good earnings

Earnings hghlights:

Quarterly sales amount of nickel metal during the given period was US$319.2 million.

Quarterly EBITDA was US$45.3 million in the September quarter.

Nickel production increased 30.2% quarter on quarter to a record of 20,275 tonnes.

An average cash cost of US$13,597 per tonne, down 6.2% since the previous quarter.

Underlying cash from operations of US$54.9 million for the quarter. This boosted its cash balance to US$513.2 million at the end of September.

In the Hengjaya Mine, the company produced a total of 1,697,976 wmt of nickel ore in the September quarter. The EBITDA generated from Hengjaya Mine in the same quarter was US$10.2 million.

However there are also bad news:

Realised nickel price declined 20% to US$15,950 a tonne and led to sales growth of just 1.2% to US$319.2 million.

RKEF EBITDA 46.6% decline to US$45.3 million. This represents EBITDA per tonne of US$2,261, which is down 57.9% from the June quarter.

Accroding to the data from marketscreener:

Analysts average target price for $Nickel Industries Ltd(NIC.AU)$ is AUD 1.16.

YTD performancein 2022 is -44.63%.

4. $Stanmore Coal(SMR.AU)$ - Strong coal

Stanmore Resources is an Aussie coal producer with assets in the Bowen and Surat Basins, where it mines metallurgical, known as coking, coal. It recently acquired all interest in what was BHP Mitsui Coal (BMC).

The federal government recently tipped thermal coal to average US$333 a tonne in 2022, falling to US$125 a tonne in 2024. Meanwhile, coking coal is expected to fall from around US$400 a tonne this year to US$220 tonne in 2024.

Current high commodity prices mean Stanmore and other ASX coal producers are experiencing huge cash flows right now. Indeed, the company’s operating cash flow surpassed US$560 million in the first half.

An expert believes that:

At a stock price of AUD 3.1, Stanmore trades on low EV/EBITDA multiples of 2.0-2.5 times in [calendar year 2022-2023], which seems too cheap given the quality of its asset base.

Accroding to the data from marketscreener:

Analysts' average target price for $Stanmore Coal(SMR.AU)$ is AUD 4.1.

YTD performance: 486.92%.

5. $DOWNER EDI LIMITED(DOW.AU)$

There is no available news that can explain the weird rally of $Dow Chemical(DOW)$. The latest news show that:

Mark Chellew broke new ground on Thursday, becoming the first ever chairman of two ASX 100 companies to receive remuneration strikes in the same year.

But it doesn't seem to be the type that can boost the market.

Accroding to the data from marketscreener:

Analysts' average target price for $DOWNER EDI LIMITED(DOW.AU)$ is AUD 5.92.

YTD performance was -17.33%.

What's your opinion towards TOP 5 stocks？

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