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Michael Heffernan, Austock

BUY RECOMMENDATIONS

Boart Longyear (BLY)

This mining driller has been getting stronger since the global financial crisis. It’s poised to benefit from a resurgence in mining capital investment and exploration activities over the short term. A good opportunity to take advantage of a relatively attractive entry point. On March 24, the share price was trading at $4.41.

Ramsay Health Care (RHC)

An Australian private hospital provider that offers sound sharemarket fundamentals. The company can only benefit from an ageing population. The public hospital system is under immense pressure, so private hospital services will be needed to ease demand. A stock that will grow over time.

HOLD RECOMMENDATIONS

Ansell (ANN)

This rubber gloves and condom maker has been a sound performer in the face of high raw material costs and adverse foreign exchange movements. Management has been impressive in dealing with challenges. Its attractive financial underpinnings offer a bright outlook.

Australian Securities Exchange (ASX)

 Despite the threat of competitors and the yet to be completed link with the Singapore Stock Exchange, its share price seems to have found a level from which there is more upside than downside.

SELL RECOMMENDATIONS

Insurance Australia Group (IAG)

With one natural disaster after another, this general insurer will probably find it difficult to sustain profit growth in the near term. There are better options available.

Kagara Zinc (KZL)

Zinc has been the worst commodity performer over the past year and the prospects for its use over the short term continue to look ordinary. The iron ore sector has greater appeal.

 

Brendan Fogarty, Alto Capital

BUY RECOMMENDATIONS

Energy Resources of Australia (ERA)

Operating in the Northern Territory, ERA is currently the world’s fourth biggest uranium producer. The shocks from Japan appear largely factored into heavy price falls across the uranium sector. Uranium prices are likely to trade at $US60 a pound – the lower end of most analyst estimates. Global medium term demand for new reactors still exists.

Newcrest Mining (NCM)

This large cap gold producer represents the most logical unhedged exposure to the gold price of any company on the ASX. The strength of Newcrest’s operations is supported by a US$225 billion in situ value of company reserves. Expect more exploration success following recent spectacular drilling results at its Wafi-Golpu deposit in Papua New Guinea.

HOLD RECOMMENDATIONS

Dexus Property Group (DXS)

Dexus holds a diversified portfolio of mostly office and industrial property in Australia and New Zealand, with some US exposure. The company’s property assets are high quality, but the outlook for growth remains subdued. Dividend yield has retreated to 6.5 per cent with no franking.

Australian Agricultural Company (AAC)

AAC is Australia’s largest cattle manager on about 20 properties covering some 6 million hectares. Any drought risk is partially mitigated by vertical integration, from breeding and exporting to high-rainfall stations. AAC is essentially an exposure to cattle prices and agricultural land values, both of which are relatively stable.

SELL RECOMMENDATIONS

Amcor (AMC)

This global packaging company operates in a capital-intensive industry and is prone to disappointing the market. Currently trading near five-year highs, consider selling and looking for better opportunities elsewhere in the market.

Cochlear (COH)

Its hearing implant stgice is a market leader. However, due to the recent strong share price run, the company is trading above most analyst short term price targets. It may be worth taking a profit, but  look to buy at lower levels.

www.altocapital.com.au

 

Steve Collette, Calibre Investments

BUY RECOMMENDATIONS

Rio Tinto (RIO)

This global miner delivered an outstanding performance and results for the 2010 calendar year. Rio is strongly positioned to benefit from the global recovery through its iron ore, copper and aluminium operations.

Arafura Resources (ARU)

An aspiring rare earths play that’s looking to stgelop and finance its Nolans project. Amid further speculation of China limiting supply of rare earths, in combination with ever-increasing demand, ARU is trading at a discount and is a speculative buy at support levels.

HOLD RECOMMENDATIONS

Woodside Petroleum (WPL)

Uncertainty and unrest in the Middle East shifts the strategic importance of known oil reserves.   WPL, as Australia’s premier oil and gas producer, is finding favour in such an environment.

Incitec Pivot (IPL)

Fertilisers are currently in favour as concerns over global food scarcity intensify amid the world population spiralling upwards. As a result, Incitec Pivot continues to garner interest. It’s reasonably valued at this point and, as such, we consider it a hold.

SELL RECOMMENDATIONS

ConnectEast Group (CEU)

We can’t see much upside or yield in this single asset infrastructure fund. It’s possible that recent traffic flow and revenue gains in February will be offset by higher oil prices. Investment capital can be allocated more effectively elsewhere.

Centro Properties Group (CNP)

The company’s gearing has been reduced after the recent sale of US assets. It requested a trading halt on March 24, 2011 pending an announcement. In any case, we believe this stock carries excessive risk relative to any potential return. It’s one purely for the punters.

www.calibreinvest.com.au

Please note that TheBull.com.au simply publishes broker recommendations on this page. The publication of these recommendations does not in any way constitute a recommendation on the part of TheBull.com.au. You should seek professional advice before making any investment decisions.

Other articles in this week’s newsletter

The CFD Strategy The Professionals Use

18 Share Tips – 28 March 2011

Outlook For Gold Stocks

Top 4 Fibonacci Retracement Mistakes To Avoid

Using Porter’s 5 Forces To Analyse Stocks

The Value Investor’s Handbook

Demographic-Trends And The Implications For Investment