ADVISOR WATCHLIST
The aim of this watch-list is to provide our clients with an insight as to what some of our Advisors are looking at in the marketplace . Each of the advisors has been asked to nominate at least one stock that they currently have on their watch-list . The securities mentioned below reflect the particular advisor ’ s personal view on the security and does not take account of the appropriateness of the recommendation for any particular client . Accordingly it is recommended that clients seek advice from his or her Burrell Stockbroking advisor on the suitability of the security to their investment portfolio .
Dylan Katzer
Senior Portfolio Manager Domestic & International Equities dkatzer @ burrell . com . au ( 07 ) 3006 7228
United Malt Group Ltd ( UMG )
United Malt Group is the fourth largest commercial maltster globally , producing ingredients for the brewing , distilling and food markets . The company has 13 processing plants in Canada , US , Australia and the UK . UMG also operates an international warehouse and distribution business , which provides a full service offering for craft brewers and distillers , including malt , hops , yeast , adjuncts and related products . Half year results ending Dec 31 st 2020 saw revenue down 11 % to $ 590M reflecting lower volume and change in mix alng with FX impact on translation of $ 6.3M and one-off costs of $ 7.4M . Interim dividend of 2cps declared . Whilst COVID impacts are uncertain and ongoing globally , the company has embarked on process changes to improve capabilities with simplified processes , skills and systems and becoming more data informed . Volumes tracking at 95 % of pre-COVID levels since March 2021 and the company will be a beneficiary of any pent up demand and normalisation of on-premise consumption coming out of COVID .
Accumulate UMG at below $ 4.60 level .
Jamie Elgar
Buy Collins Foods ( CKF ) and Bega ( BGA ). Both stocks fallen off highs after recent announcements . Target prices have remained the same at $ 12.85 for Collins Foods and $ 7 for BGA . Both stocks represent good value at current prices in a market where is currently hard to find .
Associate - Head of Dealing Desk jelgar @ burrell . com . au ( 07 ) 3006 7232
Michael Bates
Collins Foods ( CKF ) – Founded in 1969 and located in Hamilton , Brisbane , CKF holds a portfolio of KFC and Taco Bell businesses . CKF has experienced strong sales growth over the last 12 months with plans to build 66 new restaurants by 2028 to cater for expected consumer demand and the trend for consumers replacing homemade meals for convenience . Recently retreating from an all-time high of $ 13.25 back to around $ 11.00 an opportunity presents to pick up at reasonable prices and buy into a stock that is still in growth phase .
Senior Investment Advisor mbates @ burrell . com . au ( 07 ) 3006 7208
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