9min read
PREVIOUS ARTICLE 18 Share Tips - 9 July 2011 NEXT ARTICLE 18 Share Tips - 23 July 2011

#FOTO:1173:200#

Shawn Uldridge, William Shaw Securities

BUY RECOMMENDATIONS

Integrated Research (IRI)

 

Chart: Share price over the year to 15/07/2011 versus ASX200 (XJO) 

A software company involved in producing performance monitoring tools for global financial institutions and networks. We expect much higher profits going forward despite challenging currency movements. With a recent market capitalisation of about $60 million, the company is small, cheap and offers massive growth potential.

Stock code: IRI

Charts: Integrated Research Limited

More news: Integrated Research Limited

 

Woodside Petroleum (WPL)

 

Chart: Share price over the year to 15/07/2011 versus ASX200 (XJO) 

Australia’s biggest listed oil and gas producer continues to range trade between $40 and $48. LNG cost blowouts hit the share price hard. But longer term, oil prices should increase and so will this company’s share price. This year, the stock has been trading on a price/earnings multiple of about 20 times, but this hides the huge revenue growth WPL will generate over the next three years.

Stock code: WPL

Charts: Woodside Petroleum Limited

More news: Woodside Petroleum Limited

 

HOLD RECOMMENDATIONS

News Corporation (NWS)

 

Chart: Share price over the year to 15/07/2011 versus ASX200 (XJO) 

The company’s share price has been punished in response to the phone hacking scandal becoming a bigger story every day. News has initiated a $5 billion buyback and withdrawn its offer for satellite broadcaster BSkyB. But the company has plenty of other big cash generating businesses across the world, so hold for now. A weaker share price may upgrade the company to a buy. 

Virgin Blue (VBA)

 

Chart: Share price over the year to 15/07/2011 versus ASX200 (XJO) 

Troubles at Tiger Airways open the door for Virgin and Qantas to raise domestic airfares. I would otherwise rate Qantas and Virgin as sells due to my view of higher long-term oil prices, but this development actually enables much more wriggle room. VBA is a hold at these levels.

SELL RECOMMENDATIONS

Westfield Group (WDC)

 

Chart: Share price over the year to 15/07/2011 versus ASX200 (XJO) 

Even with a low share price, a dividend yield of about 7 per cent and market capitalisation very close to its asset backing, the retail sector is struggling in Australia. And that isn’t good for Westfield. To remain competitive at this stage of the cycle, retailers have to drop prices to meet the challenges from the growing online sector. And that means paying cheaper rents, having fewer bricks and mortar stores and selling more online.

Stock code: WDC

Charts: Westfield Group Limited

More news: Westfield Group Limited

 

Iluka Resources (ILU)

 

Chart: Share price over the year to 15/07/2011 versus ASX200 (XJO) 

TThe mineral sands sector reminds me of the dot.com boom 10 years ago – investors, speculators and novices piling in, and particularly ILU with alarming bravado. But we believe the stock is trading way ahead of itself and it may be prudent to take some profits.

Stock code: ILU

Charts: Iluka Resources Limited

More news: Iluka Resources Limited

 

#FOTO:1174:200# 

Sean Conlan, Macquarie Private Wealth

BUY RECOMMENDATIONS

CSR (CSR)

 

Chart: Share price over the year to 15/07/2011 versus ASX200 (XJO) 

Together with the recovery from natural disasters and general market uncertainty, no firm numbers have been provided in terms of expectations for full-year 2012. The strong Australian dollar remains a headwind, but this building materials company will continue to benefit from lower net finance costs in the near term, given the balance sheet remains in a net cash position.

Stock code: CSR

Charts: CSR Limited

More news: CSR Limited

 

Fortescue Metals Group (FMG)

 

Chart: Share price over the year to 15/07/2011 versus ASX200 (XJO) 

We believe FMG offers leverage to iron ore price strength in the short-to-medium term, combined with capital-efficient expansion plans. We believe that further expansion of processing capacity, using the incumbent contractor already on site, is time and capital efficient.

Stock code: FMG

Charts: Fortescue Metals Group Limited

More news: Fortescue Metals Group Limited

 

HOLD RECOMMENDATIONS

Monadelphous Group (MND)

 

Chart: Share price over the year to 15/07/2011 versus ASX200 (XJO) 

We note this engineering company’s top track record of delivery, and its strong balance sheet capable of supporting capital management and acquisition opportunities. Additionally, we believe MND offers strong leverage to upcoming resource developments in Western Australia.

ConnectEast (CEU)

 

Chart: Share price over the year to 15/07/2011 versus ASX200 (XJO) 

Owns and operates Melbourne’s EastLink tollway. ConnectEast is maturing in a steady fashion.  The focus will shift to refinancing November 2012 debt in the coming nine months. Expect it to provide steady growth over the medium term, and once the refinancing is complete, there’s scope for a special divided.

SELL RECOMMENDATIONS

Tabcorp Holdings  (TAH)

 

Chart: Share price over the year to 15/07/2011 versus ASX200 (XJO) 

Wagering represents about two-thirds of the company’s business. We anticipate the outlook for TAH’s wagering assets remains challenging. This is because it faces an increasingly competitive market for wagering turnover due to the growing presence of online-led corporate bookmakers.

Stock code: TAH

Charts: Tabcorp Holdings Limited

More news: Tabcorp Holdings Limited

 

K & S Corporation  (KSC)

 

Chart: Share price over the year to 15/07/2011 versus ASX200 (XJO) 

Manages supply chains involving transport, storage and wharf cartage among other things. Although tough trading conditions have somewhat been factored into the share price, we believe KSC is facing structural headwinds given its major customers depend on and are dealing with weaker export markets.

Stock code: KSC

Charts: K & S Corporation Limited

More news: K & S Corporation Limited

 

#FOTO:1175:200# 

Les Szancer, Alpha Broking

BUY RECOMMENDATIONS

Kula Gold (KGD)

 

Chart: Share price over the year to 15/07/2011 versus ASX200 (XJO) 

If its mine workers are half as enthusiastic as the chief executive, this sleeper should be a beauty.  It has the rights to an entire island in Papua New Guinea, with almost 2 million ounces of gold reserves and potentially much more. And it has the money to mine the gold. The stock listed at $1.80 last year and, in my view, is seriously undervalued. On July 14, it was trading at $1.55.

Stock code: KDG

Charts: Kula Gold Limited

More news: Kula Gold Limited

 

Geodynamics (GDY)

 

Chart: Share price over the year to 15/07/2011 versus ASX200 (XJO) 

Geodynamics is involved in developing geothermal energy from hot fractured rocks in Australia. The company aims to be the biggest renewable energy producer in Australia by developing base load electricity from its Cooper Basin geothermal resources in South Australia. On July 14, it was priced at 33 cents.

Stock code: GDY

Charts: Geodynamics Limited

More news: Geodynamics Limited

 

HOLD RECOMMENDATIONS

Incitec Pivot (IPL)

 

Chart: Share price over the year to 15/07/2011 versus ASX200 (XJO) 

A fertiliser and explosives company. Gone are the heady days of $200 a share (before splitting at 10 to 1).  The numbers don’t seem to compute below $4. The stock is cheap and it’s a good hold as a defensive play. After all, farmers and nurseries will always need fertiliser. It was trading at $3.87 on July 14.

MAP Group (MAP)

 

Chart: Share price over the year to 15/07/2011 versus ASX200 (XJO) 

If you’re holding this stock, you have seen a nice run up since June. I spend a lot of time at domestic and international airports and Sydney’s is busy day and night. I’m not that keen on airlines, but the airport is a bit like a bookmaker  – it makes money whether airlines do or don’t.

SELL RECOMMENDATIONS

Qantas Airways (QAN)

 

Chart: Share price over the year to 15/07/2011 versus ASX200 (XJO) 

I would love to give the national carrier a buy, but I can’t even with the potential demise of Tiger Airways. If Tiger does go, Singapore Airlines is looking to start a Jetstar-type airline. I think this would be potentially much more damaging to Qantas than a cheap, but disorganised Tiger Airways.

Stock code: QAN

Charts: Qantas Airways Limited

More news: Qantas Airways Limited

 

Mirvac Group (MGR)

 

Chart: Share price over the year to 15/07/2011 versus ASX200 (XJO) 

Owns a diverse portfolio of assets across the office, retail and industrial sectors. The assets are leased to quality tenants, including leading Australian and international companies. But the share price doesn’t look like it’s going anywhere in the future. Unless you own a lot of stock, the dividend isn’t going to make you rich.

Stock code: MGR

Charts: Mirvac Group Limited

More news: Mirvac Group Limited

 

>>Back to the newsletter to view other articles – July 16th 2011

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.