Argonaut | The Natural Choice in Resources

US equity markets were up overnight as technology stocks rallied after China ratcheted up stimulus to combat slowing global economic growth. The S&P 500 gained 1.1% to 2,610 and the Dow Jones increased 0.7% 24,066; Prime Minister May’s Brexit deal was rejected in a landslide defeat. The House of Commons voted 432 versus 202 against the deal that May’s government brokered with the European Union; The Trump administration has ordered thousands of furloughed federal employees back to work without pay in attempt to limit the impact of the partial government shut down

CLX’s operations closely mirror the business cycle, and with a WA recovery taking time and growth risks elsewhere in the country, we build more conservatism into our forecasts. Positively, CLX exhibits greater geographic diversity, while consolidation and cost control in WA positions the Company to benefit from an eventual turnaround. Our blended valuation remains $1.35 and CLX continues to trade on undemanding multiples in our view. We remain positive on the longer term outlook, and retain our BUY call accordingly, although acknowledge the current macro environment is likely to extend the recovery period.

Argonaut is pleased to announce the successful $12.5 million Initial Public Offering (“IPO”) on the ASX of Stealth Global Holdings Ltd (“Stealth” or “the Company”). Stealth is a fast-growing sales and distribution group supplying safety, industrial, workplace and healthcare consumable products and customised supply solutions to business customers across the resources, engineering, transport and general industrial sectors.