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Richard Batt, Shadforth Financial Group

BUY RECOMMENDATIONS

Karoon Gas Australia (KAR)

Chart: Share price over the year to versus ASX200 (XJO)

Karoon is undertaking an aggressive oil and gas exploration program in Australia, Brazil and Peru. At the end of the program, the company will be either a small explorer with an interesting LNG project in Western Australia (which it is now), or it will be a multi-billion dollar company sitting on a significant oil reservoir. The stock carries high risk, and is only suitable for investors with such an appetite. But the rewards are potentially high. 

Computershare (CPU)

Chart: Share price over the year to versus ASX200 (XJO)

A global share registrar, with the IT expertise and financial strength to capture market share in existing and new geographies. The company generates consistently high returns on capital and strong recurring revenue. It’s ideally placed to benefit from a recovery in global equity markets and improving economic conditions.

HOLD RECOMMENDATIONS

NRW Holdings (NWH)

Chart: Share price over the year to versus ASX200 (XJO)

A specialist provider of civil and mining services, it offers a strong balance sheet and significant growth opportunities via expansion into different commodities and geographies. Earnings are expected to grow strongly in response to a buoyant resources sector.

Coca-Cola Amatil (CCL)

Chart: Share price over the year to versus ASX200 (XJO)

The soft drink bottler has strong brands and a loyal customer base. Beverages sell in good and challenging economic times. CCL continues to deliver recurring revenues, which will provide investors with consistent fully franked dividends.

SELL RECOMMENDATIONS

Domino’s Pizza Enterprises (DMP)

Chart: Share price over the year to versus ASX200 (XJO)

The share price has risen almost 30 per cent this calendar year. Although the dominant player in the sector, there’s growing competition in the fast food universe, with many different product offerings. This may be an opportune time to take profits.

CSR (CSR)

Chart: Share price over the year to versus ASX200 (XJO)

The company focuses on building products after selling sugar producer Sucrogen. Now, most of the company’s earnings are exposed to cyclical forces outside its control. In the current economic environment, we expect only modest earnings growth and prefer alternative investments.

 

Les Szancer, Blueribbonoptionsonline.com

BUY RECOMMENDATIONS

Rio Tinto (RIO)

Chart: Share price over the year to versus ASX200 (XJO)

Earlier in the year, RIO was trading above $70 a share. Uncertainty and European debt issues have hurt the share price. A share price of about $57.50 is key as there’s little resistance until the $67 mark. If you look at the RIO chart, it isn’t uncommon for the shares to recover after big falls. On July 5, the shares were trading at $58.54.

Telstra (TLS)

Chart: Share price over the year to versus ASX200 (XJO)

The share price of this telecommunications giant has been trending up against a retreating S&P/ASX 200 Index in the past six months. I’m uncertain about future growth, but it’s a good yield producing company – much better than bank interest for those looking for income.

HOLD RECOMMENDATIONS

Commonwealth Bank  (CBA)

Chart: Share price over the year to versus ASX200 (XJO)

A strong company, offering solid earnings and a good dividend. Beware, if Europe implodes (and if Europe was a company, it would have been liquidated ages ago], financials will be the hardest hit.

Prima BioMed (PRR)

Chart: Share price over the year to versus ASX200 (XJO)

The company powers on with its cancer treatment trials getting ever closer to US approval. The shares have fallen since listing on the NASDAQ in April. The CEO is moving on, but remaining a director. Replacement Matthew Lehman has extensive experience in this field.

SELL RECOMMENDATIONS

BlueScope Steel (BSL)

Chart: Share price over the year to versus ASX200 (XJO)

I suggested in this publication to sell BSL when it was trading much higher than today. I maintain that too much uncertainty surrounds the company and the sector in Australia. Manufacturing is doing it too hard. Better returns on investment exist elsewhere. 

BHP Billiton (BHP)

Chart: Share price over the year to versus ASX200 (XJO)

The past 12 months shows BHP in a solid downtrend. Costs blowouts at Olympic Dam amid some acquisitions losing value amount to billions of dollars. If you own the stock, some protective puts may be a good idea.

 

James Samson, Lincoln Indicators

BUY RECOMMENDATIONS

RCR Tomlinson (RCR)

Chart: Share price over the year to versus ASX200 (XJO)

This integrated engineering services business is forecast to post significant earnings growth on the back of delivering a significant contract to provide processing facilities at Fortescue Metal Group’s Solomon Project. Successfully executing the project is likely to provide RCR with access to additional tier one client work. It should be the catalyst for earnings growth beyond 2013.

Beach Energy (BPT)

Chart: Share price over the year to versus ASX200 (XJO)

Amid weaker oil prices recently, BPT is trading at levels that attribute minimal value to the company’s strong book of assets outside the Cooper Basin. We believe assets in Egypt and the company’s unconventional gas reserves provide upside to the July 5 intra-day price of 96.5 cents.

HOLD RECOMMENDATIONS

Commonwealth Bank (CBA)

Chart: Share price over the year to versus ASX200 (XJO)

The bank appears fully valued at current levels. There’s continuing pressure on net interest margins, but a compelling fully franked dividend yield bolsters the case for investors to hold.

Cardno (CDD)

Chart: Share price over the year to versus ASX200 (XJO)

After providing strong 2012 guidance, this professional infrastructure and environmental services company is set to report its seventh consecutive year of earnings per share growth. The company has proven adept at integrating a multitude of acquisitions, and has recently been added to the S&P/ASX 200 Accumulation Index. However, at this time, CDD is trading at prices that represent full value.

SELL RECOMMENDATIONS

Prime Media Group (PRT)

Chart: Share price over the year to versus ASX200 (XJO)

It’s clearly apparent to us that advertising revenues are soft across the media sector. As the outlook for advertising revenue is uncertain, we believe this television and radio broadcaster’s next financial report may disappoint.

Seven West Media (SWM)

Chart: Share price over the year to versus ASX200 (XJO)

A tough operating environment for print media and weaker revenue may hurt profits this financial year. SWM also faces the challenge of competing in the digital age. It has appointed Don Voelte (formerly of Woodside Petroleum) as its new chief executive. A surprising appointment to some as Voelte’s background isn’t media.

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