Janine Cox, Wealth Within
BUY RECOMMENDATIONS
Insurance Australia Group (IAG)
Chart: Share price over the year
Insurance stocks pay solid dividends and tend to trend well once a run starts. Berkshire Hathaway took an interest in IAG and many investors followed suit. But the share price fell heavily, which was probably contrary to expectations. Instead, solid medium term rules would have kept investors off the roller coaster ride. Recently, IAG recovered, presenting a better time to buy.
Sandfire Resources NL (SFR)
Chart: Share price over the year
This copper producer has failed to make a clear break above $6.80 since 2013. Given the strength of this level, it must first push through it to present a buy. Following this, a potential target is around $8.50. Buying SFR below $6.80 would be high risk. The shares were trading at $5.75 on May 12.
HOLD RECOMMENDATIONS
Commonwealth Bank of Australia (CBA)
Chart: Share price over the year
CBA is often the preferred bank with investors, and its share price history demonstrates why. Typically, the stock is less volatile than its competitors. Continue holding major banks as dividends are again the flavour of the month.
Brambles (BXB)
Chart: Share price over the year
The share price rose rapidly in February. Shortly after, it continued higher towards strong resistance and an all time high price of $13.89 in 2007 (based on adjusted price data). Recently, this supply chain logistics company was trading about 6 per cent below this level. Given this strong potential resistance, a solid set of rules to manage risk is prudent.
SELL RECOMMENDATIONS
Independence Group NL (IGO)
Chart: Share price over the year
This diversified mining company rose strongly to $3.54 in April. The share price has since pulled back below $2.61. Given this, IGO is likely to have triggered an exit. Consider your risk. Traders may select an exit rule based on trading 1 cent below a chosen stop loss level, or below a daily or weekly close. The shares closed at $2.76 on May 12.
Sydney Airport (SYD)
Chart: Share price over the year
SYD has been incredibly impressive. Recently, SYD broke up through an important level of potential resistance at around $7.20. Given this, SYD needs to be monitored closely in coming months as it approaches a time for the next peak. A trailing stop loss under the last swing low on a monthly chart can manage medium to longer term holdings.
Matthew Felsman, APP Securities
BUY RECOMMENDATIONS
JB Hi-Fi (JBH)
Chart: Share price over the year
The electronics giant has broken through a high of $23.94. Up to 10 per cent of the share register is short and new highs mean short sellers will be losing money and are under pressure to cover. JBH delivered a good third quarter update. It’s also benefiting from the demise of retailer Dick Smith and low interest rates. It’s all bad news for shorters.
Structural Monitoring Systems (SMN)
Chart: Share price over the year
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Its sensor technology detects fractures, corrosion and cracks in metals and other structural materials and sends the data in real time. Successful trials have been completed with Boeing and Delta Air Lines. In December, the US Federal Aviation Administration approved its technology for use in the airline industry. A monopoly, with a tight register and upcoming milestones.
HOLD RECOMMENDATIONS
ANZ Bank (ANZ)
Chart: Share price over the year
I believe banks will largely range trade in 2016. But I expect recent banking underperformance will attract bargain hunters, so our short term bias for banks is positive. I continue to prefer ANZ due to improving returns in Asia, strong momentum in its domestic franchise and attractive valuation.
BetaShares US Equities Strong Bear ETF (BBUS)
Chart: Share price over the year
A 1 per cent fall in the US sharemarket on a given day can be expected to deliver a 2 per cent to 2.75 per cent increase in the value of BBUS. Markets in the US are likely to move higher in the short term, but we’re expecting a major pullback after the short term bounce. We’re expecting bear market conditions to resume.
SELL RECOMMENDATIONS
Fortescue Metals Group (FMG)
Chart: Share price over the year
The iron ore price has been falling after a recent spike. The price has been retreating from a 15 month high as regulatory authorities and exchanges in China teamed up to ease a spike in commodity speculation. On April 21, FMG was priced at $3.62. On May 11, the iron ore producer was trading at $2.925
Regis Resources (RRL)
Chart: Share price over the year
Although the gold price may push higher if the US dollar breaks support, the risk/reward equation no longer stacks up. On May 11, 2015, this gold producer was priced at $1.255. Precisely, a year later, the stock was trading at $3.11. We recommended RRL as a buy to thebull readers in 2015. Take some profits.
Jonathon Howe, Red Leaf Securities
BUY RECOMMENDATIONS
ANZ Bank (ANZ)
Chart: Share price over the year
Cash earnings were well below consensus expectations after stripping out one off impairments and changes to software amortization. First half statutory profit after tax was down 22 per cent to $2.7 billion. ANZ showed very good cost control, and capital generation was still extremely strong. It was recently yielding about 8 per cent with franking. We’re accumulating ANZ for clients.
Transaction Solutions International (TSN)
Chart: Share price over the year
The company recently achieved what we believe to be one of the top deals for a firm this size. TSI India has been awarded a contract to manage an additional 11,000 automatic teller machines, taking its fleet to more than 13,000. It’s targeting annual revenue of $A53 million based on current transaction volumes. We believe there’s more growth to be achieved as it has the capacity to manage 50,000 ATMs. The company also owns bill payment kiosks and proprietary products in the e-surveillance and power management space. I own shares in TSN.
HOLD RECOMMENDATIONS
OneVue Holdings (OVH)
Chart: Share price over the year
The superannuation solutions provider recently updated the market, showing a strong cash balance of $21 million. It’s on track to achieve strong revenue growth for fiscal year 2016. We believe the next quarter will be quite important for the company.
Vita Life Sciences (VSC)
Chart: Share price over the year
This pharmaceutical and healthcare company continues to attract investment support from the Teoh family. David Teoh is executive chairman of TPG Telecom. We believe the Teoh family has a plan, given VSC has a strong presence in Asia.
SELL RECOMMENDATIONS
Slater & Gordon (SGH)
Chart: Share price over the year
Seems the company received a get out of jail card from its main financiers. Debt repayments have been extended for three years. Better investment opportunities exist elsewhere.
Blackmores (BKL)
Chart: Share price over the year
The vitamins and supplements company has enjoyed a significant price rise in the past 12 months. We believe the taxes on foreign goods into the Chinese market will start to hit its bottom line during the next three to five months. We believe now is a great time to lock in gains.
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