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Janine Cox, Wealth Within

BUY RECOMMENDATIONS

Beach Energy (BPT)

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

BPT is a volatile stock, outside the S&P/ASX 100, so investors need to carefully consider their risk tolerance. A strong weekly close above $1.45, or $1.50 to be conservative, could see BPT eventually break all-time highs in 2014. The shares were trading at $1.45 on November 6.

QBE Insurance (QBE)

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

In August this year, QBE achieved a new two-year high of $17.53. However, after announcing net profit after tax for the half to June 30 was down 37 per cent, the market quickly corrected the price. QBE is testing a strong support level, broken after hurricane Irene hit the US in 2012. A strong rise above $15.50 and QBE deserves a second look. The shares were trading at $14.73 on November 6.

HOLD RECOMMENDATIONS

Asciano (AIO)

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

When the industrials sector gets moving, the longer term cycle is said to be in, and it’s currently on a nice trend to the January 2010 peak at around 4158 points. I believe this level will soon be broken, helped by AIO, which is currently taking a breather due to the short term impact on revenue from the bushfires.

Santos (STO)

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

Historically, Santos is one of the most volatile stocks at the top end of the market so it’s not for the faint hearted. The share price was recently trading below significant resistance formed after the GFC. Therefore, if you don’t already own STO, now isn’t the time to buy.

SELL RECOMMENDATIONS

AMP (AMP)

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

Post the takeover of AXA, the AMP board has been subjected to a lot of criticism. Trading at $4.66 on November 6, the dissatisfaction continues. If it trades above $5, AMP may start to look interesting. But the market would want to hear some pretty good news to change its view. I see better value elsewhere.

Crown Resorts (CWN)

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

CWN is still trending up strongly, but is looking a little over priced. That said, CWN could break $18 or $19 in coming months to form a top. If you own CWN, you might consider selling a portion and allow profits to run on the remainder. Crown was trading at $16.56 on November 6.

 

Joshua Stega JAS Wealth

BUY RECOMMENDATIONS

Steadfast Group (SDF)

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

Steadfast Group is a consolidator of small and medium sized insurance brokers. SDF’s earnings stream is highly defensive and the company generates strong free cash flow. We think earnings per share growth of more than 10 per cent a year is achievable in the medium term. It will be driven by organic premium growth, efficiency improvements through consolidation and future acquisitions. We are happy to buy this stock at current levels. The shares were trading at $1.67 on November 6.

WDS Limited (WDS)

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

WDS provides specialist services to the mining, energy and infrastructure sectors. Its energy and infrastructure business is well positioned given that coal seam gas work is plentiful. We think this is a good story to own given it was recently trading on a price/earnings multiple of just over 10 times and offers a strong cash position.

HOLD RECOMMENDATIONS

DuluxGroup (DLX)

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

This paint company is a market leader with a resilient earnings stream. But weak housing data and rising input costs presents a challenging outlook. Recently trading on a price/earnings multiple above 20 times and a dividend yield of around 3 per cent, we rate this stock a hold at current levels.

Webjet (WEB)

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

Owns internet sites and applications, enabling customers to search for flights, hotels and car rentals. WEB has been able to grow its share of domestic and international travel in the past six years with minimal capital outlays. We rate this stock as a hold, as we want to see the results of WEB’s recent Zuji acquisition, which we believe is a major risk factor.

SELL RECOMMENDATIONS

Monadelphous Group (MND)

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

An engineering group providing construction, maintenance and industrial services to the resources, energy and infrastructure sectors. Despite MND’s impressive track record, we believe it will find it difficult to defy the headwinds of a resources slowdown. We believe revenue and margins will be pressured as clients continue to focus on cost reductions. While MND is trading at fair value historically, we believe profits should be taken.

Ansell (ANN)

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

This protective gloves and condom maker is a well managed business, with a strong brand and market share. We’re concerned about the downturn in European and US earnings and the deferral of a buyback. With a dividend yield just above 2 per cent and no franking, we see better value elsewhere.

 

John Rawicki, PhillipCapital

BUY RECOMMENDATIONS

Rio Tinto (RIO)

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

One of the world’s largest diversified mining companies, with major interests in copper, iron ore, coal, aluminium, gold and diamonds. Boasting a selection of tier 1 mines, Rio enjoys low costs and diversified project selection. A recovery in global growth and commodity prices should be reflected in a stronger share price going forward. My 12-month target is $75. On November 6, the shares were trading at $65.39.

Horizon Oil (HZN)

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

An oil and gas exploration, development and production company, with its main producing field in New Zealand. Oil production from its Chinese field started in early 2013. The company is currently developing a project in Papua New Guinea, with first production expected in 2015. We expect plenty of upside as production expands and new fields come online.

HOLD RECOMMENDATIONS

Independence Group (IGO)

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

I see limited upside in the near term based on subdued nickel and gold prices. Despite this, the company has a solid earnings base that can fund ongoing returns to shareholders and exploration. While the stock may end up treading water in the short-term, I believe IGO is a worthwhile long term hold.

Mortgage Choice (MOC)

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

Offers residential home loan products via its national franchise network. Mortgage approvals are a key driver of the company’s earnings outlook. I expect the residential market to remain strong given the low interest rate environment driving up property sales.

SELL RECOMMENDATIONS

Kingsgate Consolidated (KCN)

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

A gold mining company that owns the Chatree operation in Thailand and the Challenger operation in Australia. Apart from a relatively subdued gold price, Kingsgate faces key challenges, such as reduced production from Chatree and lower than expected cash levels.

Navitas (NVT)

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

A global education services provider, the company recently issued a disappointing trading update, with a blowout in costs and lower margins. I believe the company’s share price is fully valued at this point and shareholders may benefit from redeploying the funds to another stock.

Click on the links below to read other articles from this week’s newsletter

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2. 2 Cyclical Stocks Set for Solid Year: A recurring column theme this year has been to…

3. 18 Share Tips – 11 November 2013: 18 Share Tips to BUY, SELL & HOLD from…

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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.